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Areca Nut Production and Marketing

Areca Nut Production and Marketing



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Published by: tsrsagar9689 on Sep 30, 2008
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Dr. T.S. RaghavendraDepartment of EconomicsL.B. and S.B.S. College, Sagar
Areca Catechu Linn, commonly known as Areca nut or betel nut is the product of palm. Itis well known for its consumption as a masticator in India and in the middle and Far East. Theuse of Areca nut and its cultivation constitute a distinct Agricultural feature scarcely lessimportant than other economic crops.Areca nut is mainly grown in nine Asian countries. India is leading the race in terms of area under cultivation (365.04 thousand Hectares), followed by Indonesia, Bangladesh, China,Myanmar and so on. In India areca nut is grown in twelve states, most of which are either southern part of the country or in the north-eastern region. In India Karnataka is leading state interms of production. The share of Karnataka is 40.87 per cent in terms of area under cultivationto the total area under cultivation. It is followed by Kerala, Assam, Meghalaya, W.Bengal, Tamil Nadu, Andaman and Nicobar.Though India is a premier grower of areca nut, the areca nut is imported to our country.In the era of globalization no country can restrict the import of any item; hence, areca nut is notan exception to this. The import of areca nut for the year 2005-2006 stood at 53,272 tons. Itadversely affected the areca nut market in India. It resulted in the unexpected variation in the prices of areca nut and affected adversely the traditional marginal and small areca nut growers.The objective of this paper is to analyse the impact of price variation on marginal and smalltraditional areca nut growers of Western Ghats region. 
Salient Features of Traditional Areca nut Growers: 
From the beginning it was believed that areca nut garden can be developed only in valleyregion. In other words, the maidan or flat land is not suitable for the cultivation of areca nut.Therefore, in ancient days farmers selected valley region for the erection of areca nut garden particularly in malnad region of Western Ghats. Majority of the gardens in Malnad taluks of Karnataka which is situated in Western Ghats are having 400 years of history. They practicedalmost natural cultivation or organic farming. Until recently even the scientists are unaware of 1
using flat land for the cultivation of areca nut. In this region due to the heavy to very heavy rainfall areca nut growers suffered a lot. For these farmers growing of areca nut is a way of life.They never thought in terms of commercialization. When price of areca nut started to rise,attracted by the price hike farmers tried to grow areca nut even in the maidan region or flat landwith lower cost of production and it is resulted in the higher production of areca nut. Thisincreased production along with imported areca nut created havoc in the life of traditional arecanut growers of this region.
Some Views:
Bhale Rao and others conducted a study on processing, grading, storage and marketing of areca nut in Jalpaiguri district of west Bengal. The study revealed that grading is not usuallydone by growers, however, the wholesalers grade the produce but not on any scientific basis.Grading is done on the basis of size, colour and quality. The study also indicated that thegrowers received 61 per cent of the price paid by the consumer. The study suggested cooperativeaction for the further improvement of marketing system in the region.Das (1982) observed that the facilities provided by CAMPCO Ltd, to areca nutgrowers of Kerala and Karnataka states motivated them to adopt scientific crop management,thereby resulting in an increase in the productivity of areca nut in the areas served by theCAMPCO Ltd.Subba Rao, in his study concluded that an evaluation of the sound performance of theco-operative, its high growth and growth rate, a deep impact on areca nut markets, its successin achieving the objective of its establishment and the confidence of the areca nut growers ithas earned within a short period after its establishment are clear manifestations of theexemplary performance of the CAMPCO Ltd., He further reported that to protect the producersfrom the exploitation of private intermediaries, co-operative marketing can certainly be aneffective solution and it can replace superfluous middlemen in trade, thus reducing the pricespread entailing the welfare of both the producers and the consumers.Gajanana et.al, studied the impact of the CAMPCO Ltd, on prices of areca nut indifferent markets of Karnataka. The study indicated that the establishment of CAMPCO Ltdhad salutary effects in stabilizing the areca nut prices in Karnataka. The prices in all themarkets indicated a tendency to increase vis-à-vis those observed prior to CAMPCO ltd,2
 period. A considerable amount or reduction in the variability of prices was observed during theCAMPCO Ltd, period.
Factors Influencing Areca nut Marketing:
The important factors which are affecting the areca nut marketing include control of areca nutmarket by 10-15 Gutkha Companies, heavy central tax on Gutkha, bill less trading by traders,entry of the areca nut grown in Indonesia to local market, doorstep selling by the growers, poor recovery of loans in private Mandis, the judgment of courts relating to gutkha, ;the problems of co-operatives and their limited capacity in managing g the market, market malpractices,;inferior quality of the areca nut, excessive production, vicious circle created by the merchantsthemselves, unhealthy competition etc. In the present scenario co-operatives, Government,growers and religious centers have to play their role in attaining sustainable development of areca nut marketing system.
Traditional Growers:
Karnataka is the front runner in terms of area under cultivation and production. Earlier  production of areca nut was confined to Dakshina Kannada, Uttara Kannada, Shimoga,Chikkamagalore and Kodagu Districts. The majority of the area in these districts is comprisedof traditional areca nut growers. A sudden rise in prices of areca nut in the last decade hasattracted the farmers, growing food crops in other districts of the state, towards thiscommercial crop. Now areca nut is produced in 20 districts of the state. In the traditional arecanut growing area the areca nut garden is situated in the valley. For these farmers growing of areca nut is a way of life and they follow traditional method of cultivation. Heavy rainfall isnormal feature of these areas. Therefore, every year loss of production due to kole roga is acommon phenomenon which resulted in low income to the areca nut growers. The cost of  production is increasing continuously. About 80 per cent of the growers are marginal holders.
Cost of Production
Per Acre, In Rs. No. Particulars Rs A.
Capital Expenditure

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like to use acre nut leaf for plate replacing Thermocal Plate, requirement of Machinery details and estimated cost.
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arecanutmarketprice or where can i find it?
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