The Hindu Business Line : Arecanut prices crash

Kottayam, Nov. 6 The steep fall in arecanut prices following very few enquiries from the north Indian states has triggered a panic among the nut growers. During the past two weeks, prices have slipped by Rs 10 a kg, according to the Central Arecanut & Cocoa Marketing & Processing Cooerative Limited (Campco) sources.

Domestic prices have crashed on imports flooding the country, following a Madras High Court order quashing the Directorate General of Foreign trade’s decision to impose a base price for bringing arecanut into the country.

Now there is no tariff as a result of the court’s . Industry sources believe that tariffs, henceforth, could be fixed based on the bills produced by the importers.

Else, the flow of the substandard arecanut would gather momentum. Since the tariff of Rs 35 was in existence there were no arrivals of the arecanut at lower prices.

Following the court orders, again the market has been brought under the control of the import lobby. When the controls were relaxed in the domestic market, the price has come down by Rs10.00 in major marketing centres. The sudden down trends witnessed the withdrawal of the growers from the market. But when import strengthens, traders are sceptical that price fall would be strong.

The season in Kerala is over now and there may not The price is now ruling at Rs 75-80 in Kerala.

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