It is almost a week since the Karnataka Government imposed a ban on the sale of gutkha.

There is no major upheaval in the white and red varieties of arecanut market since then, as the ban coincided with the off-season for sale.

(Red variety of arecanut is prominently used in the manufacture of gutkha, whereas white variety is used in paan beeda preparation.)

The old stocks of white arecanut have seen a price decline of around Rs 6-8 a kg in the major growing centres last week.

Similar trend was seen in major red arecanut growing centres.

Suresh Bhandary, Managing Director of the Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco) Ltd, told Business Line that a clear picture on price would emerge when the season begins from August.

Ramesh Kaintaje, a grower from Bantwal taluk in Dakshina Kannada district, said that nearly 85 per cent of the growers do not release the stocks to the market during June-July period. K. Padmanabha, President of Campco, said that the cooperative is not against the ban on gutkha.

Stating that chemical ingredients and tobacco in gutkha are the carcinogenic agents, he said arecanut is being victimised in the name of gutkha.

Ravish Hegde, Managing Director of the Sirsi-based Totagars’ Cooperative Sale Society (which is involved in arecanut trade), felt that the ban on gutkha would help stabilise the price in the market.

In spite of the recent ban in Karnataka, the price of red variety arecanut was ruling at around Rs 160-170 a kg in the first week of June, he said.

This year, there was no stock in the pipeline with gutkha manufacturers, as they did not keep stock fearing the ban.

Farmers, who have the stocks now, would play a major role in deciding the market when the season begins, he said.

>vinayak.aj@thehindu.co.in

Published on June 9, 2013