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A STUDY OF PRODUCTION AND MARKETING OF ARECANUT IN SHIMOGA-MAMCOS

TABLE OF CONTENTS Chapter No 1. 2. 3. 4. 5. 6. 7. Title Introduction Historical background of Areca nut Agricultural Marketing in India Significance in Marketing of Arecanut Profile of the Society (MAMCOS) Analysis of Survey Conclusions and Suggestions Annexure • Questionnaire • Bibliography Page No

SRS First Grade College, Chitradurga

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LIST OF TABLES Table No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Title Details of Areca nut received from members at various places Areca nut collected from agencies Share capital of MAMCOS, Shimoga Distribution of growers according to their annual income Areca nut yield per acre in quintals Number of persons cultivating types of Areca Mode of transport used Selling centers opted by respondent Problems faced by growers Payment on sales made to the growers immediately Page no

SRS First Grade College, Chitradurga

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LIST OF FIGURES Figures no 1. 2. 3. 4. 5. 6. 7. Title Distribution of growers according to their annual income Areca nut yield per acre in quintals No. of persons cultivating types of Areca Mode of transport used Selling centers opted by respondent Problems faced by growers Payment on sales made to the growers immediately Page no

SRS First Grade College, Chitradurga

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CHAPTER - I

INTRODUCTION TO PROJECT
 Introduction  Objectives of the study  Methodology  Scope of the study  Limitation of study  Chapter Scheme

SRS First Grade College, Chitradurga

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Jack. become orange brown. Mango. It plays a proximal role in the Religions. The betel nut is the seed of areca or betel palm and the leaf from the betel pepper or pan plant. Chewing results in a brick red solution. which is used in areca nut. Chitradurga 5 . which will temporary dye the mouth and lips. Sri Lanka and Malaysia and to the smaller extent in the East inclines and Burma. The people chew it with betel leaf and lime after the food for digestion. Social and cultural life of our people. chewing of which. Bangladesh. Areca nut is used for chewing. It is chewing with betel leaf and lime or chanan and little cardamom added with it. it is getting to be universal habit forming luxury to the rich and poor people alike.Introduction Areca nut is one of the important commercial crops in India. banana and spice. is help full in avoiding the bad smell. It is useful in one way or other. SRS First Grade College. It is grown with coconut. Areca nut is one of the main ingredients of “Thambula”. Areca nut is grown in the hot and humid regions of India. The aromatic. It is used in Ayurvedic and Veterinary medicine because of its several alkalizes. Areca nut is used in India by all section of the people.

Adike pathrike. Annual reports of MAMCOS. Personal interview is also conducted wherever necessary.Objects of the study  To know the marketing of arecanut in India  To study the methods of marketing  To know the role –played by the MAMCOS  To know why the formers prefer a particular co-operative society.  To identify the main reason for the fluctuation of price in the market.  To suggest some ways and means for production and marketing of produce.  To know whether the government has taken proper solution to that. Magazines. The primary data is collected by administering a structured questionnaire from the selected farmers. Methodology This project study is mainly based on primary as well as secondary data. The Assistant Manager of MAMCOS is also interviewed after obtaining opinions of areca nut growers. SRS First Grade College. News papers etc.  To find out the solutions to the problems faced by the farmers.operative society.  To know the reasons for selecting the co. The secondary data is also collected to support our study from various sources like Areca nut markets. Periodicals. Chitradurga 6 .  To know the problems of the growers.

Marking etc.e. SRS First Grade College. Chitradurga 7 .  Marketing process brings new varieties quality and beneficial goods to consumers. attempt has been made to cover all aspects of marketing of areca nuts i.  Approximately one-third of all persons gainfully employed in the country are engaged in the field of marketing. The marketing has even greater importance and significance as a whole than for any of the individual beneficiaries of the marketing process and can be expressed as follows:  The nation’s income is really composed not of money but of the goods and services which money can buy. Buying.The collected data is classified. Grading. Here. processing and marketing of areca nut. Scope of the Study Shimoga market for areca nut is an important market in India. Assembling. tabulated and analyzed to draw meaningful conclusions and to suggest some useful measures to improve the production and marketing of areca nut.  A reduction in the cost of marketing is a direct benefit to society or company. Therefore this particular market area is taken for survey by selecting 60 areca nut growers to elicit problems faced by them in the production. Selling. The study concentrates on the marketing of areca nut of the concern.

but what he grows is the demand of the people and if that is not satisfied in the locality itself . Chitradurga 8 .  Scientific marketing also remedies the imbalance in the supply by making available the surpluses to deficit areas. it is imported from other centers of production.  Marketing adds value of goods by changing their ownership and by changing their time and place of consumption.g. We do not consume or take bread to give the farmer a market for his product .  In a country like India that is striving to break the age-old bondage of man to misery. It adds value to services e. medical entertainment and educational services by performing the services involved. SRS First Grade College. Scientific marketing has a stabilizing effect on the price level.  Marketing brings to the very doors of the peasants useful implements.. business. The object of the marketing as of all productive activities is to satisfy human wants.

SRS First Grade College. The figures in survey finding are given on the basis of 50 farmers.Deals with Research Design Chapter-2: History – Deals with historical background of Arecanut Chapter-3: Agriculture Marketing in India – Deals with Agriculture Marketing in India. Chapter-4: Significance in Marketing of Arecanut – Deals with Marketing of Areca nut Chapter–5: Profile of the Society (MAMCOS) Deals with the profile of MAMCOS. Chapter Scheme Chapter-1: Introduction . Shimoga Branch Chapter –6: Analysis of Survey – Deals with the analysis of survey conducted Chapter –7: Conclusions and Suggestions Deals with the Summary of survey conducted followed by conclusion and suggestions.Limitation Being the areca nut marketing in a national level the survey has been restricted to Shimoga. The study does not show the position of entire market of areca nut in Shimoga but represents only a certain places of Shimoga. Chitradurga 9 . The sample size selected is due to pacing of time.

CHAPTER-II HISTORICAL BACKGROUND OF ARECANUT  Introduction  History  Scientific classifications  Role of Areca nut in India SRS First Grade College. Chitradurga 10 .

SRS First Grade College. Chitradurga 11 . Each dried nut is then wrapped together with a piece of shell lime in a leaf of the betel pepper and chewed. Its demand in other parts of the world is chiefly from the section of the population who migrated originally form this sub-continent.Historical Background of Arecanut Introduction Areca nut is popular as a masticator used either with betel leaves or as plain or as scented supari. The habit of chewing areca nut is typical of the Indian sub-continent and its neighborhood. boiled in water. The ripened seeds are gathered between August and November. They are not habit-forming but habitual chewing of betel nuts eventually blackens the teeth and may cause them to decay. The betel nut is about 2 inches (5cm) long and is mottled brown and grey in color. Betel color saliva red and blackens the teeth that are neglected. dogs and other animals. betel nuts are used a drug to destroy intestinal worms. It is sometime prepared raw by drying smoking or salting. Betel nut the seed of the betel palm (Areca catechu) which is chewed as a stimulant throughout Southern Asia. because of its several alkaloids but its utilization in this manner is negligible on the whole. The production of areca nut is also largely confined to this sub-continent. The pieces are rolled in a leaf of betel vine smeared with quick-lime. Areca nut has uses in Ayurvedic and Veterinary medicines. Betel nuts contain the alkaloid arecoline a mild stimulant that produces a feeling of well being. giving a dark-brown or reddish in color. Elsewhere they are used as preliminary in veterinary medicine to de-worm horses. cut into slices and dried in the sun. In some parts of the orient.

A Prodns = 1000 tonnes. Production 150 57 57 N.Scientific classification The betel nut palm belongs to the palm family palmae. India leads in production but even then. it was never sufficient to meet the internal demand until recently. Organized research work on this crop is being conducted from the last 30 years or so. Following table gives the area under and production of areca nut in the principal growing countries:Table Area Country 1) India 2) Bangladesh 3) Sri Lanka 4) Malaysia 174 79 20 04 Area = 1000 hectares. It had to depend upon imports to fulfill the gap.C. The data pertaining to this crop has been collected by the directorate of Economics and Statistics.A.C. The Indian Central Arecanut Committee (I. Chitradurga 12 . It is genius Areca spices a ‘Catechu’. The Government of India made a financial grant of 5 lakhs to the I.A.C) was constituted in 1949 SRS First Grade College. The betel vine belongs to the pepper family ‘piper areca’ and is piper betel.R (Indian Central Areca nut Research) for the first time in 1945 for financing measures to Mysore and develops the production and marketing of areca nut.

Areca nut Research Station. B.Sipi ghat.R is now attended to by the Directorate of Areca nut and Spices Development with Headquarters at Kozhikode. ------do-----.C. Central Areca nut Research Station. Regional stations of CPCRI:1.A.on the recommendations of an Adhoc committee appointed by ICAR in 1947. some of them are mentioned below: (1) Chemistry of Areca nut husk and its destructive distillation utilization of husk in the preparation of wrapping paper board insulating wool cellulose plastics moulding powder and also by-products of SRS First Grade College. Central Areca nut Research Station. (Port Blair Andaman Nicobar) The departmental program which was formerly being carried out by the I.Mohitanagar (west Bengal). 2. Sub-Stations of CPCRI. 1. Palode (Kerala) 2. There is at present an All India Co-ordinate Project on Areca nut Research in which all the under mentioned stations are also involved. Chitradurga 13 . 3.Kahikuchi (Assam). Work on technological aspects of areca nut has been conducted from time to time in different Universities and Institutes through specific schemes sanctioned in the part by the I.Sreevardhan (Maharashtra).A. Main stations: Central Plantation Crops Research Institute Kaasaragod (Kerala). ------do------. ------do------.C. 4. ------do-----. ------do-----. 6. Vital (Karnataka). A.C.Poochi (Kerala). 5. Hirehalli (Karnataka) C.

destructive distillation of the husk – Forest Research Institute. As a result of research work. Aligarh Andhra Pradesh.Travancore University and Central Food Technological Research Institute Mysore. Calcutta. Although the technological work has been done in the past in a scattered manner on a ad-hoc basis and many remain unavoidable to some extent in future too.. (2) Utilization of areca palm and nuts in leather tanning and in the preparation of writing Ink-Central Leather Research Institute. Chitradurga 14 . Madras and Presidency College. (6) Drying of Areca nuts. (4) Chemical constituents of areca palm and nuts isolation of alkaloids including their individual components and testing their pharmalogical action and therapeutic uses – University of Calcutta. ‘Mangala’ an introduction from China SRS First Grade College. (3) Preservation of areca fruits and husk in fresh condition. (5) Utilization of areca nut in the preparation of dentifrice Calcutta Chemicals Ltd. Dehradun and the University of Gauhati (Assam) and Travancore (Kerala). a few exotic varieties of areca nut have been identified for better performance over the local cones. Madras. it is expected that many problems on the side of utilization will also be attended in future. Mysore.Central Food Technological Research Institute.

Assam and Meghalaya.has already been released for cultivation. Unlike the Eastern Zone. Majority of the growers in Karnataka have been in a position to derive benefit from such studies but the same cannot be said about planters in other parts and these aspects has been discussed in the next paragraph. In south India. Diseases like Anabe (foot rot) kole-roga. Chitradurga 15 . Yellow leaf and Band Diseases and Pest-like root Grab Spindle Lug and Fluorescents Caterpillar continue to take heavy toll of the crop. In India. SRS First Grade College. the conditions of cultivation are quite different from those prevalent in eastern India. Studies have been made on methods of raising plants. selection of seed nuts and seedlings and NPK requirements. water management. The fruits are largely used for chewing with or without betel leaf. Areca nut is often the principal and several instances the only cash crop of the locality in which it is produced. On the plateau of Karnataka in the Gangetic delta of West Bengal. areca gardens of the south have to be constantly looked after and a lot of labour and money is spent on them throughout their life time. the areca palm is cultivated all along the Western coast from Maharashtra to Kerala. Role of Arecanut in India Areca nut has inspired many poets and musicians. Many Nurseries exist for raising seedlings and supplying the same to growers but plants at large are hetrogenous in nature and contain low yielding types. There is hardly any ‘Kavya’ without any reference to Areca nut. The life span of the palm is considered to be the same as that of man and it is associated with the life and culture of our people. mixed cropping and pests and disease.

Chitradurga 16 . It is an essential item of custom and is symbolic of Indian life. CHAPTER – III AGRICULTURE MARKETING IN INDIA  Introduction  Problems of Agricultural Marketing in India  Measures taken for improving Agricultural Marketing in India SRS First Grade College. rejoicings and deaths. births.It finds a place of honour at all occasions. weddings.

It has been suffering a number of problems.e.Agriculture Marketing in India In the past. an efficient agricultural marketing is necessary. Again. a large number of cash or commercial crops are grown only for sale in market. But. i. till recently.e.. The main problems of agricultural marketing in India are: SRS First Grade College. there is a need for an efficient agricultural marketing system so as to enable the farmers to have wide markets for their produce. Efficient agricultural marketing not only ensures the sale of agricultural produce to the advantage of farmers. The need for and the importance of efficient agriculture marketing arises from the following factors:The ultimate objective of agricultural production cannot be achieved unless the agricultural products are sold efficiently to the advantages of farmers.. mostly of sale in the market. Chitradurga 17 . Consequently. Problems of Agriculture Marketing in India It is true that an efficient agricultural marketing system is essential for India. i. But after the adoption of new agricultural strategy. but also assure adequate and timely supplies of food stuffs to the consumers and raw materials to the manufacturers. agriculture is being carried on a commercial basis. agricultural marketing in India had been defective. agriculture was carried on by the farmers in India on a subsistence level. As such the question of agriculture marketing did not receive much importance. for-their consumption.

Chitradurga 18 .  Mal practices in the market. SRS First Grade College.  Absence of adequate transport facility. Lack of organization of the farmers.  Multiplicity in the weights and measures.  Lack of market information.  Inadequate provision of credit.  Long chain of middlemen.  Poor paying power of farmers.  Absence of grading.  Multiplicity of market charges.  Adulteration of agricultural produce.  Inadequacy of storage facility.

Provision of adequate liberal finance for raising and marketing of agricultural produce. a number of measures have been undertaken by the central and state Governments for improving agricultural marketing in the country. Grading of agricultural produce. 5. Provision for market information. 6. Standardization of weights and measures. But the agricultural marketing system in India is defective in several respects. 4. 7. Extension of transport facilities to rural areas. Establishment of regulated markets. 8. So remedial measures have to be adopted for improving the agricultural marketing in the country had been made by several committees. 2. Development of warehousing facilities for agricultural produce. and in accordance with these recommendations. 3. Chitradurga 19 . The various measures of agricultural marketing in India are: 1. Development of co-operative marketing.Measures taken for Improving Agricultural Marketing in India An efficient agricultural marketing system is essential for the successful development of agriculture. SRS First Grade College.

Chitradurga 20 .CHAPTER – IV SIGNIFICANCE IN MARKETING OF ARECA NUT  Introduction  Markets Chain of Intermediaries Assembling or buying of product Standardization and Grading Grading of product ‘AGMARK’ Grade standards for areca Types of Arecanuts Pricing of Arecanut Commodity based organization Co-operative marketing federation for areca nut Marketing for areca Methods of marketing Payment Storing and warehousing  Co-operative Marketing of Arecanut  Regulated Markets SRS First Grade College.

The cultivators who are generally isolated have no contract with the distant distributing and consuming centers. Their holdings being small. As areca nut is produced by a large number of small growers whose financial resource is meager. the great disparity in quality and quantity of products etc.Significance in Marketing of Arecanut Introduction Marketing of agriculture produce is in crux of rural economy in our country. SRS First Grade College. the dispersion of producers. The cultivators generally have no contact with the distant distributing and consuming centers and as a result. There will be no incentive for the cultivators to increase their production unless they are assumed of an economic price for their produce. a substantial portion of price paid by the consumers goes to the middle man. they are often faced with the situation where the growers have no option but to part with their produce at throw-away prices. assumed added importance as the cultivators have to raise commercial crop for sale in distant markets and the village self-sufficiency of the gone days has now almost disappeared. the output is little and consequently they do not earn much interest in the sale of produce. A serious draw back in the existing marketing system is the inadequate arrangements with regard to marketing facilities such as collection. Chitradurga 21 . storage and transport of the produce and lack of knowledge of the price structure at every stage. It has of late. Marketing of areca nut is more expensive because of the size of the productive unit..

Chitradurga 22 . Mandis. Secondary markets are the wholesale markets and mostly located in areas of consumption. Market can be divided into two types on the basis of operation. The produce is handled in large quantities and specialized operators such as way man brokers and commission agents become necessary for the performance of different services. at the same time we should look into the interest of the buyer who should get full satisfaction from the price he pays for areca. Mamcos and Apscocs etc. They are having ample facilities for financing. The produce they assemble passes to the secondary market. for areca producers often sell their surplus products in such market through their known market middlemen called commission agents.Market A market is a centre about which the focus leading to exchange or title to a particular product operate and towards which the actual goods tend to travel. Shimoga is a primary market. storage and transportation. Primary market is generally a producer’s market. SRS First Grade College. Secondary markets are in fact the best forms of organized market for the settlement of agricultural products in India. Terminal markets are produce exchange with trade association conducting exporting and internal distribution of commodities. Marketing is the performance of all business activities in flow of goods and services from the point of initial agricultural production until they are in the hands of ultimate consumer. A farmer should dispose his produce so as to get the maximum return of price.

assembling as a function of marketing SRS First Grade College. Chitradurga 23 . brokers. transporting. A substantial portion of the price paid by the consumer represents the cost of handling and the margin of profit earned by the several intermediaries. Assembling or buying of product Assembling refer to those business activities which are concerned with concentrating goods under a single management or control. all commission agencies are traders who are not bidding in auction unit but they appoint agents for bidding in the auction sales. The middleman services are therefore essential to link the producer with the consumers.Chain of intermediaries The produce has to pass through the local user and commission agents at the assembling centers. grading. The object of assembling is to make available the goods wanted by producer or consumer at their hands. selling and delivering to the ultimate consumer. In recent amendment. The assembling implies ownership not merely the physical transfer of goods. collecting. Someone has to undertake the curing. The exporters and the importers are at the top and the whole sellers and retailers at the distributing and consuming centers. But considerable economy can be affected through a combination of producers and co-ordination of numerous unit of production of marketing. brokers sell information of product available for sale or purchase. The commission agents purchase the areca nut through agencies and growers. they charge commission at some percentage. Brokers operate to bring buyer and seller together. Primarily. In modern times of varied production and varied demands.

quality and quantity required. who on the one hand is required allay the suspicion of the buyer and on the other hand. Chitradurga 24 . In the present system of commercial production of agricultural crops. there is no room for complacency about the bewildering confusion prevailing in the field of marketing. These functions of physical supply along with other functions are performed to assembling their functions are one and same. The dealer who knows where he can purchase at all times a sufficient quantity of the product he has for sale performing the function of assembly just as is the merchant who transport a supply merchandise and holds it in his warehouse until called for by his customer. assembling is all the more importance. Assembling should not be confused with transportation or storage. Standardization and Grading An efficient system of marketing is of utmost importance to a country under all conditions and at each stage of its development. It results from buying efforts. The situation is more embarrassing and complicated for the honest dealer or producer. The marketing system in our country is still antiquated and out of date. The wholesalers of a big Mandi in their turn assembly the produce and break up these lots into smaller ones for the retail traders and the retailers sell them to individual consumers. It is here that the grading of products on basis of well defined standards in SRS First Grade College. to face the challenge of unscrupulous rivals out for cut throat competition. In the case of areca nut which is produced in scattered small fields in certain seasons. Assembling thus implies bringing the goods at convenient points in the volume.has assumed great importance.

size color and intrinsic quality. Standardization and grading thus proved a common language for the buyer or the seller. Chitradurga 25 . This quality dependent upon chemical contents. flavor. a pattern or example. a model. The agricultural commodities. appearance. helps both the producer and the consumer. Grading of products SRS First Grade College. there is bound to be general discontentment in public. Standards generally serve as the basis for future use and to be effective they be relatively permanent and must be used by a considerable proportion of sellers and buyers. When we call a commodity. length of fiber. as they are raised under varying environmental conditions and cultural practices show consider variation in quality. the incentive for the production of the quality produce suffers to the detriment of industrial needs and consumer preferences. Unless the quality differences are reflected in the prices. It is therefore necessary to gear up the various marketing services among which standardization and grading play a vital role. and amount of moisture etc. color. we certainly mean that it is of a certain quality. Standardization is the legislation of the grades or is supported by legal sanction and this gives permanence to grade over a long period of time. If the consumers are not assured of their requirement in a pure form and at a cost within their capacity to pay.regard to general appearance. size. based upon intrinsic physical properties or qualities of commodity with a view to further sub dividing it into several grades or classes. a standard good. Standardization indicates the establishment of a certain standard. Standardization thus implies a prototype.

into lots of conforming of certain standards.Grading starts where standardization ends.. This ultimately adds to the marketing cost and subjects the producers to systematic exploitation in the trade. The need for introducing well defined grade standards was therefore felt firstly in the field of agricultural commodities in order to ensure the producer a return commensurate with the quality of his produce and buyer his moneys worth. Grading is a process of dividing a quantity of the same kind of goods into uniform groups according to certain standards of size. In India the areca nut products are raised under different environmental conditions and varying agronomical practices. SRS First Grade College. For healthy trade practices. degree of cleanliness. Grading is simply a means of dividing products of varying quality. the quality differences should be appropriately reflected in prices commensurate with the quality of the quality of his produce. he will not have any incentive to go production of better quality. color. In the absence of well defined quality standards and a regular system of quality marketing products. shape. acidity or other significant characteristics. When standardized goods are further subdivided into well defined classes they are known to have been graded. size etc. Established standards are commonly called grades. Various chemical and mechanical devices may be used in assorting products or determining the grade of products. Chitradurga 26 . These products show considerable variation in regard to quality. grading in areca nut commodities even in the secondary and terminal markets has to be based on inspection of products.

grading at the producers level has been introduced. grading under AGMARK is yet to gain momentum and become popular among both growers and traders. While the grade specifications for the sun-dried whole areca nut finalized under this scheme have already been accepted.‘AGMARK’ Grade standards for areca nut Areca nut is one of the commodities included in the schedule of Agricultural Produce Grading and Marketing Act 1937. The Agricultural produce Grading and Marketing Act is permissive and the grading under the same to be known as AGMARK grading. Chitradurga 27 . The certificates are issued on individual larger packers. The inspecting staff of the Central Agricultural Marketing Department inspects the grading station in charge of the authorized packers and collect samples of the graded produce from the market. Under this SRS First Grade College. to issue certificates of authorized to persons or corporate bodies who are prepared to grade and pack the produce on the prescribed lines. The act authorizes the Agricultural Marketing Adviser. The traders and all societies dealing in this commodity have not yet adopted the same for the purpose of internal trade in spite of the many advantages that accrue from grading. Grading at Producer’s level For helping the formers to sell their produce at price commensurate with the quality of the produce sold by them in the mandis. Although AGMARK grade standards have already been prescribed under the provisions of the act for sun-dried whole areca nuts (chali supari). prescribing AGMARK specifications for boiled areca nuts are under consideration of the Agricultural Marketing Adviser. Government of India.

Grading at farmers level helps to create mutual confidence between the buyer and the seller. It provides a common language for them since almost all mandis dealing in areca nuts are functioning as commission agents and the produce of the individual areca nut growers is sold in separate lots. grading services have been provided at regulated at markets.AGMARK scheme. they are most appropriate agencies to undertake grading and pooling of the produce and various media is needed to make it. co-operative societies and in certain warehouses as well. Chitradurga 28 . SRS First Grade College.

Andhra Pradesh. length wise and breath. Rajasthan. Assam and West Bengal. Processed Green Nuts SRS First Grade College. Uttar Pradesh. boiled and dried) UNDE (BETTE) (Tender whole boiled and dried) Varieties of areca nuts and centers of production and consumption Trade types Ripe Arecanut Ripe Dried Arecanut Main centers of production Kerala. Assam and West Bengal Kerala. Karnataka and Maharashtra Main centers of consumption Kerala and Assam Gujarat. Madhya Pradesh. boiled and dried) (Tender-cut into 4slices. colored and dried) (Tender-sliced and dried) (Tender-cut into pieces and dried) (Tender-cut into small bits length. boiled. Tamil Nadu and Maharashtra Kerala. Andhra Pradesh and Karnataka.Main trade types of areca nuts Areca nuts produced in India can be broadly classified under the following heads: PUDI CHALI ERASEL IYLON NAYAMPAK CHUR OTTARETTU (Tender cut into small bits. Chitradurga 29 . Karnataka. wise boiled and dried) (Ripe areca sun-dried) (Tender-Tinley sliced. Assam and West Bengal. Delhi. Karnataka. Tamil Nadu.

The farm level price 2. inner characteristics etc. Whole sale market price 3. Chitradurga 30 . A product may adopt various price policies for the product being produced by him. color. the varying units of price quotations from place to place. It is the amount paid by a buyer to seller for unit of product or service.Pricing of Areca nut Price is the value of product expressed in terms of money. even in the same market and these may differ even from merchant to merchant. SRS First Grade College. there is variation in prices of areca nut markets mainly due to variation in quality of produce. Wholesale market price is the price with in find on commodities that is sold in bulk at the market area. The price of areca nut varies widely from market to market and even in the same market. In the absence of any welldefined standards of quality. it is not possible to get comparable prices over a long period. A whole-seller is supposed to supply in big lot to the retailers. The prices are liable to vary on account of difference in size. Retail market price The farm level price can be interpreted as the price that a farmer is receiving for his produce at the village and mandi levels. Prices of nuts may be studied considering prices at three levels. In addition to the above factors. Retail market price is the price which is rolling in the distribution centers for the consumers. Like other agricultural products the prices of areca nuts are subject to well defined seasonal changes. 1.

banana. Sagara. There are number of nationalized banks and a district cooperative bank near by the market yard. tobacco powder and required especially in youths which is the main reason for price hike of areca nut. Market Area All the business related to areca nut is made in the R. This area has been brought under rules and regulations during 1959-60. Shimoga area. The yard is established in 1965 and has 50 acres of area. So. In this area usually whole nuts are marketed and not much of the sliced nuts. Shimoga is sub-divisional head quarter. Suitable securities are enforced for the entire area. betel leaves and pepper. Hosanagara. The reason for this hike is increase of popularity about ‘Gutka’. Marketing of Areca nut in Shimoga Shimoga is a primary market for areca. centre of the Shimoga.Reasons for price hike of Areca nut From the last 4 to 5 years areca nut market has grown rapidly. Bhadravathi. If Government bans Gutka or its popularity decreases then areca nut price may fall down. which is a tasteful mixture of areca nut pieces. SRS First Grade College. Shimoga is one of the important centres for areca. This is the chief market for produce of Thirthahalli. Reforms in the market practices have been introduced and it is working properly. growers today itself find other usages of areca nut increasing its popularity and improving the productivity of other by-products.C yard located at B.M. Chitradurga 31 . This is because of the sudden raise in the prices of areca nut.H road.

sun dried ripe nuts with or without shell and also boiled nuts. No transportation facility is provided by the concerned authorities to come here. The grading of whole or sliced boiled nuts is generally done by hand picking by female who are generally skilled in the job. circular sieves made of cane with octagonal gates are often used. cutting and boiling need expert handling and it is undertaken by the curer.husked nuts. Assembling of the nuts The long chain of intermediaries and ignorance of the grower is the main cause for this state of affairs. For separating the small pieces. These societies act as important assembling agent in the respective areas of the operation. Specification of grading is generally different from merchant to merchant even in the small markets. The role of co-operative society is insignificance in the market. Bette. Wholesale merchants and commission agents generally do not act as assembling agents.. The further processing i. Kempugotu and Chooru. Mode of Transport SRS First Grade College.The nuts are sorted and graded into different varieties called Aapi. Chitradurga 32 . un. The producers’ sells immature. Grading by Merchants Classification of nuts into several grades is invariably practiced by merchant in all the assembling markets. The major advantage is that all the business relating to areca nut is concentrated on one place. Rashi. This is done generally when the produce is sold by the seller to a merchant. Idi.e. Chikni.

Chitradurga 33 . Mamcos. At Shimoga. The sales are being conducted by the respective commission agent in Mandies in Apscos. After the sale. One copy of the sale is being issued to commission agent and another copy to the traders and third copy is being retained in the sale-note book itself for office record. the second weighment receipts called ‘B’ Bill are issued to the producer. The commission agents are permitted to store the bags of the seller in their respective go downs. Method of sale The unit of quotation is for one quintal. Auto carrier. sellers commission agent also bid along with other buyers and as such it is not in his interest to get the highest prices for his clients. Lorries and trucks to the market for sale. Method of Weighment As soon as commodity arrived to the commission agent’s Mandis. As soon as weighment is completed a receipt called ‘A’ Bill is being issued to the producer and a copy of the same will be sent to this Market Committee.The areca nut which is ready for market is brought on bull-carts. in presence of the employees of this market committee. Resale of the crops SRS First Grade College. the first weighment is being done by the licensed weigh men by the market committee. agreement slips is prepared in triplicate by the market committee staff on the spot and after obtaining the signature of the commission agents and traders are taken of the sales. The prices of areca nut are being settled by Tender System of sales. As soon as the sale is completed.

There are some more merchants. In the market there are commission agents who store the areca nut of the producers. Bangalore. Chitradurga 34 . Calcutta. These agents sell the nuts of the cultivator whenever they want to sell.. 2. Madras.In the distribution of areca nuts the same agencies as in the case of the agricultural produce such as paddy. Terms are being settled by private negotiations. Wholesale merchants in small market place order with their agents in distributing centers. they will be acting as intermediaries such as village merchants. include charges for transport and expenses incidental there to. 3. Luck now. Resale is carried trough commission agents in important distributing centers such as Bombay. Allahabad. local merchants in the town etc. The areca nut is sold by closed tender system. Suggestions for Improvement Improving the statistics of acreage and production Although due to mixed cultivation it may be difficult to have exact statistics of area. wheat is employed. but mostly they are like commission agents in selling the goods. Marketing Channels 1. The cost of distribution besides market charges for services rendered in assembling and distributing markets. arrangement need to be made for recording the SRS First Grade College. Gulbarga etc. These are commission agent wholesale merchants and Retailers. There are some merchants in the consuming centers. Agra. They are some brokers who work on behalf of the big merchants. Hubli. There are some Co-operative sectors also who deal in areca.

The prices of imported nuts generally have a depressing effect on the prices of areca nuts produced in the country and indirectly discourage production. Regulating Markets There exists no regulated market for areca nuts to reduce the burden of market charges on the growers. than at present and for estimating the production annually. coloring and drying affect badly the quality of areca nut. A periodical check of areca nut acreage together with a system of recording yield by selected growers in different areas should possibly be adopted to have fairly accurate year to year estimates of production. Hence. Marketing Intelligence SRS First Grade College. Regulating Imports India imports a considerable quantity of areca nuts from abroad to meet its requirements. imports should be regulated. It is therefore uneconomic for appear to be a great scope for organizing curing and marketing of societies of producers on Co-operative basis. Improving the Quality of cured Areca nut Defective methods of boiling. Areca nut market should be regulated. Marketing Areca nuts on Co-operative Basis The Marketable surplus which a grower has to offer for sale is very small because of holding and low yield. It can be improved by educating the growers in the best methods of curing. Chitradurga 35 . providing credit facilities and by introducing improved ovens for drying areca nuts during the rainy season. lack of proper knowledge is responsible for this.areca nut acreage with greater accuracy.

Sagar. Improved Grading The grading is almost confined to merchants in the assembling markets. Shimoga.  The South Canara Agricultural Co-operative Society. Managalore.  The Central Areca nut Marketing Co-operative Society ltd. the grower does not derive any benefit from grading there appears to be an urgent need for the fixation and introduction of standard grades. Commodity Based Organization Co-operative marketing societies areca nut have been organized in Karnataka State on commodity basis having a wide range of operations. ltd. The necessary arrangement for the collection and dissemination of the desired information is urgently needed.  The Areca processing and sale Co-operative society ltd.. Sirsi. co-operative societies or by Government proposed institution. Chitradurga 36 . The grading work could be taken by producers. The notable example of societies organized on commodity basis having a wide area of operation is as follows.  The Sirsi Tatagar's Co-operative Society ltd. The data available about prices are incomplete and not very reliable. sticks movements and prices of areca nuts in different markets.  The Malnad Areca Marketing Co-operative Society Ltd. Mangalore. SRS First Grade College.Very little information is available about the arrivals.

Methods of Marketing Process of dealings by Members The Malnad areca marketing co-operative society is working as an intermediate between areca and traders. Petan. Vantibetta SRS First Grade College. they are also permitted by their bylaws to handle other subsidiary plantation produces such as cardamom. Marketing for Areca Important trade types dealt with by the MAMCOS Shimoga. Co-operative Marketing federation for Areca nut Co-operative marketing federation of all the societies dealing in arecanut has been formed in Karnataka State. Each and every grower produce is serially numbered along with initiates for convenience sake. Rajalu. which contains quantity of areca nut with number given to gunny bags and name of the members. on small scale. i e. The main object of this is to promote co-operative marketing on a state level and to open state depots in all the important distributing and consuming centers outside the state. After weighing concerned authority of the firm issues the bill. Nuli. Chitradurga 37 . It should be the ultimate object of farming. Deshavara. Soap nut etc. Cashew. Members send arecanut in gunny bags to the society..Though these societies are mainly intending to deal in areca nuts. called 'A' bill. Hasa.

If the members is satisfied with the quoted price they instruct the society to see the produce.The member could avail the facility of produce loan against the pledge of the produce. if the member agrees to part with quoted price then the concerned authority issues a bill called the 'B' bill. The advancing amount is restricted to 60% of the market value of that variety of areca nut. Payment Payment of the amount by traders The price which are quoted for the arecanut by the traders being a close tender is studied by the regulated marketing yard. In case if he feels that the rates are not satisfactory he will reject the offer. after the payment of the quoted amount. Which is a close tender and the tender which will be opened by the concerned authority of the regulated marketing committee. The trader can take areca SRS First Grade College. Chitradurga 38 . The prices which are quoted for the areca nut being a close tender is finally studies by the regulate marketing yard. Whoever has quoted the highest price will get the areca nut. will be exhibited in the society yard. Method of disposing of the Produce According to the member instruction the society will arrange the produce for sale. which contains quantity of areca nut. The traders who has quoted the highest price will get areca nut. which are serially numbered. Interested parties quote their prices and give their quotation to the society. The bags of areca nut. rate per quintal of arecanut and the total amount. A sales transactions is of two days in week that too limited to certain hours. The amount is credited to his account after necessary adjustments. However.

Then the concerned authority issues a bill called 'B' bill. The amount is credited to his account after necessary adjustment. The payment can be made in cash or cheque. Payment to growers If the member agree to part with the quoted prices. which contains quantity of areca nut with number given to gunny bags and name the member. Discount on the quoted amount will not be allowed. Here after weighing. The trader can take arecanut only after the payment of the quoted amount. the concerned authority of the society issues a bill. After grading the gunny bags are stored in the spacious warehouse yard. There is a separate register maintained in the warehouse containing the number of bags and other particulars.nut. Storing and Warehousing The growers send their areca nuts to the society in gunny bags. until it is finally disposed off. SRS First Grade College. This can be cross checked by tallying with the 'A' bill and the mentioned above. Chitradurga 39 .

CO-OPERATIVE MARKETING OF ARECA NUT  Introduction  Objectives  Characteristics SRS First Grade College. Chitradurga 40 .

Such problems have to be solved through the development of cooperative marketing. But they alone cannot solve all the problems faced by the farmers. the farmers have felt the need for joining hands and forming agricultural cooperative marketing societies for the efficient marketing of their produces. no doubt. malpractices practiced by the middlemen. 5) Agricultural products vary in quality.Introduction One of the major reforms or measures suggested for the improvement of agricultural marketing in India is the establishment of regulated markets. 4) Their production is seasonal. 2) Their production is scattered. have been useful in removing several defects of agricultural marketing. excessive market charges. 7) There is a relative inelasticity of demand for agricultural goods. There are certain problems which are outside the purview and reach of regulated markets. 6) They are perishable. Agricultural marketing in India is subject to several defects. So. All these characteristics of agricultural products make the marketing of agricultural goods difficult for individual formers. Regulated markets. Agricultural products have certain special characteristics. SRS First Grade College. 3) Their production is specialized. 1) They are produced on a small-scale. Chitradurga 41 . Such as the existence of too many middlemen taking away the lion’s share of the price of the agricultural produce paid by the final consumers.

In short. storage. lack of transport and storage facilities. Such as processing standardization and grading. An agricultural co-operative marketing society is a co-operative association formed by the farmers for the purpose of performing one or more function. SRS First Grade College. Agricultural co-operative marketing societies can be a part of the integrated rural credit system. absence of market information. packaging and selling connected with the marketing of agricultural produce and improving their efforts. Chitradurga 42 . He is forced to sell his produce immediately after the harvest to get the funds needed by him.. etc.absence of standardization and grading. They are an essential prerequisite for the efficient running of agricultural co-operative credit societies. the staying or holding power of an average Indian farmer is weak. assembling. it is a cooperative association of farmers formed for the purpose of effective and efficient marketing of their produce. This has necessitated the development of the agricultural co-operative marketing societies. Again. All these problems have resulted in high cost of marketing and reduced the share of the farmers in the price paid for the agricultural produce by the ultimate consumers.

Characteristics of agricultural co-operative marketing society An agricultural co-operative marketing society has certain characteristics of its own. Development of orderly marketing. They are:  Association of farmers  Voluntary association  Open membership  Financial resources  Sale at market price  Equal voting rights  Democratic management SRS First Grade College. 5. 8. 3. Improved bargaining position as its members are sellers. To maximize the income of its members or farmers. Chitradurga 43 . Development of marketing facilities. Elimination of trade abuses.Objectives of Co-operative Marketing Society 1. 4. transport. finance etc. 9. 7. packing. Adoption of better selling methods 6. such as storage. 2. Improvement of the quality of the produce through standardization and grading. Lowering the cost of marketing. Obtaining better prices for the produce of members sold through it. processing.

 Service motive  Limited dividend  Co-operative education REGULATED MARKETS  Introduction  Objectives of Regulated Market  Defects of Regulated Markets  Measures for the Improvement of Regulated Markets SRS First Grade College. Chitradurga 44 .

unnecessary deductions etc. Regulated markets have several distinctive features. local bodies and co-operative societies and the State Government. Objectives of Regulated Markets The main objectives of regulated market are: 1. such as incorrect weighment. and all malpractices. 2.  Area of operation. 3.  Government notification. excessive market charges. The main features of the regulated markets are: Market for a specific commodity or a group of commodities. traders and commission agents. SRS First Grade College.  Trade practices. Chitradurga 45 . It is a market where the buying and selling of agricultural produce takes place under set of rules and regulations made in this behalf by the State Government.Introduction A regulated market is a wholesale or central market where dealings in agricultural produces are regulated or controlled by the State Government through a market committee. To eliminate unfair market practices.  Market committee. are curbed and consequently farmers are able to dispose of their produce at fair prices. To create conditions of fair competition and to ensure a fair deal to the farmers while marketing their produce. consisting of the representatives of the farmers. To reduce market charges..

 Reduction in village sales.  Elimination of middlemen.  Market information.  Fair prices for products. Defects of Regulated markets: Regulated markets are no doubt. of immense help to the grower. seller. Chitradurga 46 . they are subject to certain limitations and defects. Licensing of functionaries. buyers. and even to the final consumers. SRS First Grade College.  Facilities.  Prompt payment.  Uniform unit of quotation. However.  Correct weighment. the number of regulated markets present in the country is still far from adequate.  Reduction in market charges.  Settlement of complaints and disputes. The draw backs of regulated markets are: Considering the vastness of the country.

The deal is settled between the parties out side the market and only fictitious sales and mock auctions are undertaken inside the markets. on account of the paucity of funds. They are not able to get the payment for their produce immediately after sale. In some the regulated markets. Most of the grower-sellers have a grievance over the in-ordinate delay in the payment of the price or their produce.Spacious market yards are must for the development and progress of regulated markets. the market committees are dominated by traders. In most of the regulated markets. There is a discrepancy in the notification of commodities to be included in the regulated markets. SRS First Grade College. This leads to a certain amount of confusion. This discrepancy helps several manipulators to escape from the clutches of the regulated markets. It is said that speculative transactions in the form of forward contracts are under taken in some regulated markets. This works to the detriment of the grower-sellers. most of the regulated markets in the country do not have spacious market yards. the market committees are factionridden. But. and not by the grower-sellers. function properly. But the weighment is generally restricted to about 800 lots per day. Chitradurga 47 . The organization and supervision of the regulated markets lie in the hands of different departments in different states. It is true that regulated markets have ensured correct weights and measures end they have introduced metric system of weights. This defeats the very purpose of regulated marketing. This works against the interests of the farmers. They do not very often.

3. As the number of regulated markets in the country is not adequate. So. regulated markets are a must for the successful agricultural marketing in the country. steps should be taken to increase the number of regulated markets. 2. For the promotion and development of regulated markets measures or steps have to be taken: 1. For effective supervision and co-ordination of the activities of the regulated market committees. There should be more representation of the grower-sellers in the market committees. 4. As there is a substantial increase in the arrivals in the regulated markets. the market yards in the regulated markets should be expanded considerably to cope with the increase in the arrivals. the market committees must be made to discharge their duties properly to the advantage of the farmers. There should be close co-ordination between the Government and the regulated markets so as to strength the administrative system of the regulated markets. 5. Chitradurga 48 . Through proper supervision and control. SRS First Grade College. 6.Measures for the improvement of Regulated Markets: It is true that regulated markets in the country suffer from a number of limitations. But certainly they have helped to remove the malpractices in the markets and have ensured fair deal to the farmers. a state agricultural marketing board should be set up in every state.

All the types of transactions in respect of regulated commodities should be brought under control.Steps should be taken for prompt payment to grower-sellers. 10. 8. 11. SRS First Grade College. The resources of the market committees should be augmented.7. Chitradurga 49 . To break the monopoly of the trades in the regulated markets there should be co-operative marketing society in every regulated market.Arrangements must be made for speedy weighment of produce. 9.

Chitradurga 50 .CHAPTER – V PROFILE OF THE SOCIETY (MAMCOS)  Introduction  Organization Structure  Management  Membership  Area of Operation  Grading of areca nut by MAMCOS  Profit distribution  Loan advancement and repayment  Role of MAMCOS in price stabilization SRS First Grade College.

Profile of the Society (MAMCOS) Introduction The Malnad areca nut marketing co-operative society. SRS First Grade College. At the time of beginning it is to establish a common place for them on their own. popularly known as MAMCOS is the leading areca nut processing and marketing agencies in the Malnad region. The MAMCOS came into shoulder with the responsibility as marketing intermediary and it acts as a commission agent. The cultivator had no contact with the distant consuming and distributing centers as such a major portion of the price paid by the consumers was pocketed by the middlemen to come out with these drawbacks. Deputy Commissioner of Shimoga. It is a cooperative society which was established in the year 1939. a full pledge co-operative society become inevitable. Shimoga. The MAMCOS was established under the President ship of Sri. so as to meet the needs of the growers of areca nut. It celebrated its Diamond Jubilee in the year 2000 AD. Chitradurga 51 . ltd. Punnuraj . It has been providing various facilities to the farmer like procurement of areca nut providing loans to farmers etc.

Organization Structure of MAMCOS. Chitradurga 52 . Shimoga BOARD OF DIRECTOR PRESIDENT VICE PRESIDENT MANAGING DIRECTOR JOINT SECRETARY ASSISTANT SECRETARY CHIEF ACCOUNTANT RECOVERY MANAGER BRANCH MANAGER GO DOWN MANGER SRS First Grade College.

Membership It was started with 659 members with a share capital of Rs. Honnali and Channagiri Taluk of Davanagere Districts. 2. It has also reserved one directorship for Women candidate and another for S.23. a representative nominated by government. which includes Shimoga. Secretary and the 17 Directors. Honnali and other 5 directors from Sagar. 16031. Liability of members The liability of members of MAMCOS is to the extent of full value of shares held by them. Shikaripura. The Deputy Commissioner of Shimoga district is the Ex-officio President of the MAMCOS. At present the society have 14816 members and the share capital of Rs. The Vice President. Chitradurga 53 . His private property is not involved for payment of debts and obligations of the society. Hosanagara and other 5 directors from the entire taluks of Chikmagalur district. The Vice President is to be elected by the directors from among them. Election for directors is held once in 5 years.00. The total numbers of directors are from Shimoga.59. The Secretary is appointed by the Government of Karnataka.Management Executive Committee of MAMCOS consists of the President. Area of operation MAMCOS has administrative area. Bhadravathi.C. It SRS First Grade College. Channagiri. Thirthahalli.718. candidate and also from Shimoga co-operative Bank which provides financial assistance to MAMCOS. Chikmagalur.

Kalasa.has branches at: SAGAR. Kadur. THIRTHAHALLI. Basavani. Nittur. SHIMOGA. Humcha. BIRUR. Kammaradi. Uttameshwara. CHANNAGIRI. Hariharapura. Kalloni. SRS First Grade College. Trinevi. Megravalli. KOPPA. Kattehakkalu. Konandur. Alagari Mandi. Chitradurga 54 . Nagara. SHRINGERI. HOSANAGAR. Bidargoda. BHADRAVATHI. Sampekatte. Tumari. And its have its agencies at: Jaipura.

shops and to arrange trade fair and exhibitions 4. 9. To propagate measurer such as economy in production and self help 8. pepper etc.If necessary include in business of supplying spare parts of pump sets. 2.. To arrange for distribution of Chemical which are required to prevent fruit not diseases (Kole Roga) on cash or credit basis 7. 15.Objectives of MAMCOS 1. with the permission of the register 5. SRS First Grade College. To let out go downs. Make arrangement to dispose plantation such as areca. pepper and other process products 6. 12. trade centers and sales centers and exhibition if required. pepper and on other plantation to the members. of chemical and fertilizers useful to areca growers and also to take up all necessary activities in this connection. pepper and soap nut to the best. Chitradurga 55 .To supply ammunition to protect crops from wild animals. 14. Mangalore. 3. Encouraging the members to produce pure plantation crops such as areca.To establish branches. 10. To grant produce loans on areca. To make up processing activities.To take up all such activities as directed by the government connected with the main objectives of the society. To take up exporting of areca nut.The society to work on an agent of the Central Areca marketing cooperative society limited.To take up manufacturing processing storage sale etc. 13. 11. To supply nitrogen fertilizers and cattle feeds on cash basis.

But AGMARK grade standards have already been prescribed under the provision of the act for sun dried whole areca nut. Both traders and growers have unique advantage by grading price of different grade varies from state to state depending on the quality. Once cannot overlook this. deliberately introduce hair splitting the difference in quality in the existing types and thus increasing the multiplicity.16. Earlier the members grade their areca depending upon the SRS First Grade College. traders sometimes. In addition to this in certain assembling markets. Areca nut is one such commodity it is said that there are about 160 commercial varieties of areca nut though the crop harvested belongs to the same types of areca. "AGMARK" for areca nut Areca nut is one of the commodities included in the schedule of agricultural produce grading and marketing act 1937. To get their areca graded. The member of the society can avail the facility of grading. grading under "AGMARK" in yet to gain importance. Future. Chitradurga 56 . they should inform before to the hand. demand and other factors of graded areca nut.To take up all necessary activities which are required to improve the above objectives. grading of areca nut is of multiple dimensional importance. Grading of areca nut by MAMCOS In India very few agricultural commodities consists of multiple commercial varieties. Grading of areca nut will be done according to the instruction of the members.

Chitradurga 57 . Not less than 25% of the profit shall be paid as dividend to the share holders.availability of labour with the society. f) 10% for the staff welfare. g) And the remaining is transferred to the common good fund. 1. Produce loan 3. Fruit root disease loan SRS First Grade College. Profit Distribution Profit will be distributed in the annual general body meeting in the following way. e) 3% for the welfare of the laborers. Crop loan 2. In accordance with the statutory provision a certain amount of profit shall be given to the company education fund. b) Not more than 5% to the areca nut research and deplmnt fund. Loan advancement and repayment Short-term loans: The MAMCOS Shimoga is satisfying the short term requirement of the areca growers. The members have to pay nominal charges for the quantity of areca nut graded. Not less than 25% of the profit shall be transferred to reserve. 1. 4. The remaining profits will be distributed in the following ways. d) 20% for the welfare of the areca nut growers. c) Not less than 20% for building construction fund. a) Not less than 12% for the state government share capital reduction fund. 3. The credit facility is of 3 types. 2.

Produce loan The produce loan is given to the member against the pledge of areca nut. The MAMCOS Shimoga will supply these above material. Chitradurga 58 . Otherwise they will not get loans until they clear the balance. In recent days the price is declining. The necessary adjustment is done and the remaining is only credited to their account Role of MAMCOS in price stabilization The price of the areca nut is not stable. The growers can keep the processed areca nut under pledge. The fruit root diseases will be distributed in the form of Bordeaux mixture of time copper sulphete. Definite reasons cannot be given for the fall in the price. The growers will pledge the processed areca nut and take the loan. The repayment is done for the sake of produce. gum etc. Repayment However for smooth running of the process. but SRS First Grade College. The needy members will apply for the loan. The loan will be given to the areca grower in the month of August. Fruit root disease loan It is popularly called ' Kole Roga' in Malnad tract. the growers should be very honest in their loan repayment. The percentage of produce loan is at rate of 60% of the market value of the areca nut. The board of directors will sanction the crop loans without any favorism.Crop loan First the MAMCOS Shimoga receives applications for loans in the month of May every year.

some of the important causes attributed to the fall in areca nut price are as follows: 1.32. purchases of areca according to the needs. Details of Areca received from members at various place in 2009-10 Table: 1 Areca nut collected from agencies: Place Received in Weight in Shimoga Sagar Thirthahalli Koppa Sringeri Birur Shimoga Bhadravathi Channagiri Hosanagara Total bags 32. 5. Market manipulations.119 17.370 15.31. 6. The society purchases areca nut for the Central Areca nut marketing Cooperative society ltd.811 15. Intermediaries function in the field of marketing. Increased production of areca nut. 076 17.156 28.970 1292120 2323710 938321 1034336 12115534 Sales in bags 27904 26077 14268 6309 5597 15763 14710 25639 13025 13727 163019 Weight in Quintals 1932634 1518979 909241 296012 279894 1040485 1. Mangalore as an authorized agent. Chitradurga 59 .854 13. In other organization also.443 Quintals 22. Lack of export potential. Lack of alternative use of areca nut 2. Certainly the price stabilization can be achieved up to some extent.833 1676154 865934 310614 309542 1. 4.101041 1868013 914740 937224 10798263 SRS First Grade College.175 6591 6.186 31.105 183.. Fall in consumption 3.

(In Gunny Bags) SRS First Grade College. Chitradurga 60 .

SRS First Grade College. 5. 7. 9.Table: 2 Sl. 8. No 1. 4. 2. 6. Chitradurga 61 . 3. 10 11 12 13 14 15 16 17 18 19 Places Basavani Megravalli Kmmaradi Ganapathi Katte Bidargodu Jaipura Hariharapura Konandur Vltameshwara Kulaso Nittcer Nagara Humgha Kalloni Trineve Sanpekatte Kadur Thumuri Purappenane In Bags (65Kgs) 1668 1833 2463 3031 1127 4119 1155 782 1014 2928 861 2140 1877 1256 268 784 639 87 91 Details Capital Shimoga about of – Share MAMCOS.

228007 Mobile 9449863265 SRS First Grade College. APMC YARD Sagar Road SHIVAMOGGA Phone 08182 250175 08182 250920 Mobile 9449863266 Hosanagara Behind Bus stand Hosanagara Shivamogga Dist. Shivamogga Dist. To Bus stand Tarikere Chickmaglur Dist Phone 08261 222368 Mobile 9449863261 Sagara APMC YARD Sagar.2009) Share Capital from the members in the year 2009-2010 Repayment of share capital to the members in the year (2009-2010) Share capital as on 31-3-10 29710340 in Rs 27691710 2497850 479220 BRANCH OFFICES Shivamogga Post Box. Phone 08282 266239 Mobile 9449863263 Opp. 13. Phone 08189 228227 Mobile 9449863262 Tarikere Bhadravathi Sringeri Thirthahalli APMC YARD Thirthahalli Shivamogga Dist. No. Phone 08181 228447 Mobile 9449863267 Bharathi Beedi Sringeri Chickmaglur Dist Phone 08265 250206 Mobile 9449863260 APMC YARD Channagiri Road Bhadravathi Shivamogga Dist. PARTICULARS Share Capital at the beginning of the year as on (1-4. 4. Chitradurga 62 .Table: 3 Sl. Phone 08183 226047. No 1. Phone 08185 221376 Mobile 9449863264 Koppa Main Road Koppa Chickmaglur Dist. 2. Phone 08265 221043 Mobile 9449863259 Birur Margada Camp Birur Chickmaglur Dist Phone 08267 255613 Mobile 9449863258 Channagiri APMC YARD Channagiri Davanageri Dist. 3.

Chitradurga 63 .CHAPTER – VI ANALYSIS OF SURVEY  Analysis and Interpretation of Data  Summary of observation SRS First Grade College.

Income per year. 400000 – 600000 per year and 40% of the respondents earn Rs.100000-400000 per year and 24% of the respondents are Rs. Chitradurga 64 . No. of persons 10 8 12 20 50 Source: Survey Percentage 20 16 24 40 100 SRS First Grade College. The above income groups also number of respondents who preferred arecanut cultivation under their income group. A copy of the Questioner is given in Annexure.100000. The question asked to the respondents. can be classified as questions on Agricultural practice and questions on selling practices.Analysis of Survey Survey was conducted to know growers preference towards sales through co-operative societies. Table 4: Distribution of growers according to their annual income Income group Below 100000 100000 – 400000 400000 – 600000 600000 & above Total Analysis: The above table shows that 20% of the respondents are below Rs. 16% of the respondents are Rs. 600000 and above.

Figure-1 Graph shows distribution of growers according to their annual income SRS First Grade College. Chitradurga 65 .

Figure-2 No. of persons 23 12 15 50 Source: Survey Percentage 46 24 30 100 25 23 20 15 12 10 15 5 0 Below 5 5 – 10 10 and above SRS First Grade College. This varied yield per acre shows that there is a lack of scientific approach in agricultural practices. Chitradurga 66 .Table 5: Areca nut yield per acre in quintals Quintals Below 5 5 – 10 10 and above Total Analysis: This sows that 46% of the growers expected to grow around 5 quintals per acre and above that were 24% and 30%.

Figure-3 No.Table 6: Number of persons cultivating types of arecanut Types Raw or Green Sun dried Boiled Total Analysis: More than 50% of the cultivators were asked making boiled areca nut and 38% of the cultivators asked making sun dried and reaming cultivators asked green nuts. Chitradurga 67 . of persons 10 19 21 50 Source: Survey Percentage 20 38 42 100 25 19 20 21 15 10 10 5 0 Raw or Green Sun dried Boiled SRS First Grade College.

of persons 5 8 25 12 50 Source: Survey Percentage 10 16 50 24 100 25 25 20 15 12 10 5 5 8 0 Bullock cart Bus Lorry Others SRS First Grade College. Figure-4 No. Accordingly 16% cultivators preferred private transport facilities and other 24%. many cultivators preferred transport like lorry and vans to transport their produce.Table 7: Mode of transport used Transport Bullock cart Bus Lorry Others Total Analysis: Mode of transport used by the growers show that. Chitradurga 68 .

e. 52% of the cultivators sell their produce through cooperative society and others i. Chitradurga 69 . of persons 11 9 4 26 50 Source: Survey Percentage 22 18 8 52 100 Co-operative society 26 Direct 4 Agent 9 Mandi 11 0 5 10 15 20 25 30 SRS First Grade College. Figure-5 No..e.. 8% of direct sales and 22% sell to Mandi and the remaining sale to agent.Table 8: Selling centers opted by respondent Respondent Mandi Agent Direct Co-operative society Total Analysis: This shows that many people i.

The growers felt satisfied with storage facilities many expressed their fears about inefficiency among society officials. Figure-6 1 6 1 4 1 2 1 2 1 0 8 6 4 2 0 Selling Storage A dvance Transport 1 1 1 2 1 5 No. When they talk about problems in selling its about lack of price stability and market assistance/ problem of advance refers to the hard and fast rule followed by society in sanctioning advance facility many were not bringing the area nut to the market yard due to high transport cost. Chitradurga 70 . of persons 15 12 11 12 50 Source: Survey Percentage 30 24 22 24 100 SRS First Grade College.Table 9: Problems faced by growers Respondent Selling Storage Advance Transport Total Analysis: This shows that there are some defects in co-operative marketing in suiting itself to the needs of the cultivators.

About 60% of the respondents expected in the line of prevailing market rate and 40% were either below the market price or above it. of persons 34 16 50 Source: Survey Percentage 68 32 100 Analysis: Immediate payment on sales is made to growers. sales about 3 months or 6 months in receiving payment. many explained that sales proceeds adjusted directly to the advance Figure-7 Graph: Payment on sales made to the growers immediately No 32% Yes 68% SRS First Grade College. There is a need to expand that facility to carry out the practice of direct sales at villages to merchants. This explains the need to increase the market intelligence awareness among growers. Chitradurga 71 . The running rate for that month was Rs.Table 10: Payment on sales made to the growers immediately Respondent Yes No Total No. The question of market rate expected was asked to know the grower’s expectation and reality. 32% of the respondents told that if taken by them previously. Method of sales adopted is tender methods in MAMCOS Shimoga.13500 per quintal of area nut.

He is neglecting the commercial marketing or green areca nut which enjoys fair returns in foreign market. Owing to uneconomical marketing practices.· grading and quality control in arecanut produce has been neglected. Certainly it is the only marketing intermediaries working for the betterment of areca nut cultivator To sell. a cultivator has three option namely Mandi. directly to the village trader. but societies provides advance only to productive purpose on sound security from growers. Co-operative society.Summary of Observations The study into marketing practices of areca nut cultivators revealed that areca is not considered as much as important commercial crop as it was earlier. Cultivator is not aware of new improved arecanut veins capable or withstanding the disease. In order to Capture international market the primary necessity is to provide better returns to the cultivator and encouraging him to practice more arecanut of superior quality. To provide better returns to the cultivators. His decision to sell through these marketing intermediaries may be influenced by 1) Advance 2) Interest 3) Transport and other practices Advance is a major factor influencing the cultivator. But areca is gaining its commercial importance in primary market. Chitradurga 72 . This is an important factor in keeping the SRS First Grade College. On the basis of survey following conclusions can be drawn. Mandies provide advance on their personnel relationship even for unproductive purposes. I believe co-operative marketing has a major role to play.

Here APMC is practicing an appreciating works. astonishingly it does not play a major role more than 26% of the respondents was charged exorbitant rate of interest. Interest rate.861 members constitute more than 11 crores paid up shares. this shows a clear need to develop areca nut transport facilities. SWOT Analysis of MAMCOS Ltd. Transport is also an influencing factor in marketing. nearly 50% of the growers rely on lorries and van transport facilities. Respondents appreciated the rate of interest charged by the society.growers tied with Mandi operators. But there is need to expand this facility. (d) Network SRS First Grade College. It is financially strong. Strength (a) Financial Base: MAMCOS has more 14. As a proof it has prompt tax payer award to its credit by the state government. But now the membership has grown to has very large number. It shows its goodwill. Shimoga 1. These agencies do not provide any transport facilities to grower. is an accompanying factor of advance. 16.031.. and 50% of the respondent expressed the problems of advance in co-operative marketing society. Chitradurga 73 . (b) Goodwill: MAMCOS was established in 1939 including 659 members with a share capital of Rs. (c) Administration: The Administration of MAMCOS is best. It has collecting the agencies located interior parts to collect the areca nut produce and avoid direct sale for lack of transport facility.

It helps in linking up of farmers very easily e). 3. may give license for importing or arecanut which may cause price decrease. b) No advertisement Now a days advertisement plays very popular role in making people to know about something. 4. Opportunities a). Threats 1.A unique feature is the network of society. 2. Mushrooming of commission agents in rural areas is a big threat for the society. Weakness a) Lack of Social Capital Influence of Mandies has show the growth of capital Mamcos. But Mamcos is lacking in it. 2. As arecanut can be used for many purposes. Chitradurga 74 . b) Demand: MAMCOS can increase the demand for arecanut exporting the same to foreign market. Diversification: Recently the society has opened the scented areca nut manufacturing unit. Diversification: There is tremendous scope can be used for diversification. by SRS First Grade College. Govt. There is no media advertisement for Mamcos c) MAMCOS has no control over price fluctuation d) MAMCOS is asking in taking active part in the research and development to open new dimensions for areca. It has open a good opportunity for growth in the market where there are only few player. It has 10 branches and 19 agencies all over Malnad.

have banned the use of Gutka. It has caused a serious decrease and in demand for areca nut. But this yei1d is no as such good price for areca. Banning of Gutka: . Decrease in the export or .quintal. Current Scenario of Arecanut Now a days every field is liberalized welcoming other country. and rich in large amount were kept there stock waiting for good price for their stock. 1) Chali Areca which is in white color 2) Red areca The producing of chali areca was simple compared to red areca. is the reason for the decrease in areca price. In the areca there are mainly 2 types. Reasons for the short fall in areca price: The only main question. 7000/.mica nut to foreign counties is a greater threat to the society 4. Areca price compare to few year ago has decreased by Rs. which arises in the minds of farmers. They were may be because of: SRS First Grade College. India was exporting areca to Pakistan and Maldives country.Recently several State Govt.3. The agricultural field is also one among them. But after Kargil war India stopped exporting areca to Pakistan. for which areca nut is the main input. In the season of areca in large volume the areca was sold but still the middle class people in small amount. But there is great drawback of this we can see in now a days. So the production of chali areca was high in these years. Chitradurga 75 .

In the last few year areca growers got a good price for their product because of Gutka. But this will not going to do any thing because of SAPTA (South Asia Preferential Trade Arrangement) treaty. According to new import policies the rate for importing areca was not yet fixed. In some of the states Gutka was banned. As per this SAPTA treats. This is also one of the reasons for decrease in areca price. 4) Financial liberalization. Last year India has imported areca from Sri Lanka in abundance and it has made problem for domestic areca growers. These were some of the reasons for the shortfall in areca price. This was another main reason to fall in the price of areca. According to "State Marketing Board Surveys” the revenue to the state from Areca dealings is Rs. About 50 Lakh people were depend on areca and about 2 crores people were involved in various activities concerned with areca as estimated. So there is no control of government for importing areca. Chitradurga 76 . Some of the farmer feels that by charging import duty this can be solved. the areca which is imported from Sri Lanka and Bangladesh with a discount of 50% in import duty. Panmasala and other areca products. SRS First Grade College. 3) The draught in the place where there is a purchase of areca.1) The liberalization towards the rate of import on areca by the government. 1500 crores. as it is injurious to health. 2) The decrease in the rate of import duty from 100% to 35%.

CHAPTER – VII CONCLUSIONS AND SUGGESTIONS  Introduction  Conclusions  Suggestions  Other suggestions SRS First Grade College. Chitradurga 77 .

Research can also be made in this field. When areca nut palm is broken by wind or destroyed by other means. Steps must be taken to attract more consumers for the areca nut. Conclusions Large amount of areca nut is given by small land holders. But to improve productivity. high wages and high rate of fertilizers etc. it needs at least 5 years to get the crop. producers financial position was down so ‘insurance’ facility must be provided for the crop. Suitable scientific methods are needed for the effective production and storing. small land holders should be provided with the long term loans and Government should provide supporting prices for the fertilizers and their products. Popularization about the betel nut must be increased by advertisements and researching is needed about the other uses of areca nut. In that case. Chitradurga 78 . there are much more mediators therefore growers get only 65% of money of what consumer paid. 60% of the respondents are not being on the line prevailing market rate showed a need to improve market awareness and to improve rate of the market return to growers. To overcome these problems. Another problem is that of unauthorized purchasers. In the areca nut market. they have problems like financial assistance.Conclusions and Suggestions Introduction The last question regarding market rate expected worked out as a line dividing the grower expectation and reality. who purchase the products SRS First Grade College. National and Rural development banks must activate in this direction.

The care must be taken so that areca nut market should be independent of such commercial items. It is observed that the current “good value” of the areca nut is due to ‘Gutka’. managerial and financial setup. The marketing of MAMCOS has analyzed considering opinions of respondents in satisfactory at present however it can impress its marketing program with better marketing infrastructure SRS First Grade College.by not paying the taxes. Chitradurga 79 . It is necessary for the management to suit its marketing infrastructure to the needs of growers with in its marketing. which is a heavy loss for the Government and they are also responsible for price fluctuation.

A Co-ordinate approach arriving at removing all the weak links of the marketing channel is essential. Marketing is a multistage process for the improvement and development of marketing structure. This calls for and justifies the necessities of intensive research and investigation of primary market. Growers should be made aware of proper quality control and grading practices to earn better returns. Society should arrange for some sort of transportation facilities to growers to bring their produce to market yard. Society should provide advance facility on a more flexible basis to save cultivators from traps of Mandi Operator. Chitradurga 80 . The MAMCOS should term towards more professionalization in management and try to build a social relationship with the members besides this. Society should provide proper market intelligence to growers. Since one of the common feature of business in 21st century is change. SRS First Grade College.Suggestions In order to introduce reforms one should know the defects and short comings of the prevailing system. Collection centers should be expanded into more interior and rural parts.

Growers should assemble their produce in one place and processing and grading should be carried out collectively to earn better returns for their produce. The technology can be used in husking. 5. Other Suggestions 1. Growers are suggested to take proper care of areca nut plantation apart from measures to protect the main crop.In conclusion MAMCOS should achieve a better share to the producer in the price paid by the consumer The success of cooperative society depends upon the effective involvement of members. Chitradurga 81 . 3. 6. The cultivation should give importance for the growth of mixed crops. They should replace the old and diseased vines with new and improved breeds of vines. They should arrange for collective transportation of areca nut produce in their area. A producers co-operative society requires for its development proper co-ordination between growers and management. drying. Proper measures to control the disease will give better yield of areca nut. slicing. This lowers transportation cost. Irrigation and labor problems can also be reduced by using modern technology. coloring. The slogan of a cooperative society is "each for all and all for each". 4. Most of the cultivators have not adopted modern technology for production of areca nuts. The management of the society should have a clear idea of growers needs and marketing environment. SRS First Grade College. 2. boiling and packaging of areca nut.

7. The unsatisfactory marketing arrangements have been the base of the problem. The large number of the intermediaries functioning in the field of marketing has brought down the producer’s share in the consumer’s rupee. This exploitation the producer could be topped only by reducing the number of intermediaries and creating a situation where by the grower will have to say in the matter of regulation of prices. 8. It is necessary to under take suitable propaganda work amongst the growers to make proper processing and grading more popular. So that it fetches higher prices for their produce. 9. The availability of marketing facilities should be within easy reach for the producers. 10.Creation of areca nut board. 11.Co-operative marketing organization like, MAMCOS, CAMPCOS and APSCOS have an important role to play both in providing credit facilities and arranging for orderly marketing. 12.The Government should continue to grant interest loans on the subsidiary. 13.The increased rate on tax should be decreased. 14.The Government should fix a minimum price for the areca nut. 15.By increasing a licensing method, the government should prevent the growth of areca nut. 16.The scope for expanding the export trade is limited. It should be encouraged. 17.Few alternate uses are worth pursuing. Areca nut can be beneficially used in the manufacturing both paste and chewing-gum. It would not

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only increase in the consumption of areca nut within the country but would also lead to export trade in these products. 18.The growers should be aware of price fluctuation associated with Gutka and other commercial products of areca nut, so that future problem is effectively handled.

A NNEXUR E • Questionnaire • Bibliography

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CULTIVATORS QUESTIONNAIRE I am Venkatesh K.S student of SRS First Grade College, Chitradurga studying in Final Year B.B.M. for the partial fulfillment of my course. I am conducting the survey on the “A STUDY OF PRODUCTION AND MARKETING OF ARECANUT IN SHIMOGA-MAMCOS, to prepare a project report. Therefore, I request you to spend for me a few minutes to answer the questions in the questionnaire. Name and Address: 1. Major Occupation: 2. Land holding: 3. Area in Acres: Irrigated Non-irrigated a) Below 1 c) 3 to 6 e) Above 10 4. Areca nut yield in quintals Per acre: 5. Annual Income (in Rs.) a) Below 100000 c) 400000-600000 6. Method of cultivation used: 7. State any special features of areca nut cultivation, if any, adopted in your garden . 8. What are the disease and pests affecting the crop? a) Koleroga b) But rot c) Anaberoga d) Nut Splitting e) Leaf Spot f) Stem Splitting g) Hidimundige roga h) Any other (please specify) 9. Which type of areca nut you produce for market ? a) Raw or Green b) 200000-400000 d) Above 600000 a) Below 5 b) 5 to 10 c) Above 10 b) 1 to 3 d) 6 to 10

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b) Sun dried c) Boiled 10.Method of disposal of nuts a) Through Co-Operative societies b) Through Commission Agents c) Through regulating markets d) Local merchants 11.What is the distance from land to Mandi (in Kms)? a) Below 10 b) 10-15 c) Above 15 12.What is the mode of Transportation used? a) Lorry or Van b) Bullock cart c) Others 13.What is the method of sale adopted? a) Auction b) Tender c) Direct 14.Do you get immediate Payment on sale? If no, what is the period? 15.Any problems in selling through mandi (commission agents) Y/N. (If yes please mention) 16.If need, from which of the Banks following sources you take loans a) Commercial /Agricultural b) Co-Operative societies/ Regulated markets Y/N.

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what is the price you expect for your produce? Y/N.Your opinion towards MAMCOS ____________________________________ Place: Date: Signature b) No b) Storage d) Transport SRS First Grade College. 17. Improving the existing market arrangements. if not. 18.Do you think present prices are Economical.What is the market rate expected? (In Rs) a) 10000 to 15000 b) 15000 & above 21.Service Provided by MAMCOS a) Excellent b) Good c) Poor 22. 23. Give suggestions. for.Do you get immediate payment on sale a) Yes 20. Getting higher prices for the produce.c) Mandis d) Others. Chitradurga 86 .Any problems in selling the through co-operative society Y/N Mention them a) Selling c) Advance e) Others 19. if any.

BIBLIOGRAPHY 1.laws 2. Adike Pathrike 8.D Varma M.com www. Marketing Management 7. Annual Report 3.mamcos. Indian Economics : : : MAMCOS MAMCOS K.L SHARMA 4.google. NARAYANA BHAT SRS First Grade College.net : : : SAXENA SHERLAKAR A manual for Areca nut growers B.shimoga.com www. Adike Krishi Website www.K Deweyy J. Chitradurga 87 . By. A study of marketing in India: 6. Survey of Arecanut crop in Indian Union 5.

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