Demand for red arecanut has been hit as production of ‘gutkha' is on a decline following a Supreme Court ban on the marketing of the latter in plastic sachets, according to the Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco) Ltd.In the annual report for 2010-11, Campco said that the consumption of gutkha and ‘ paan masala ' increased continuously in the last decade, creating demand for red arecanut. This had helped red arecanut to fetch a fair price in the market.

It said that the Supreme Court order banning the packaging of gutkha in plastic sachets has affected red arecanut market, as it is the major ingredient in gutkha and ‘ paan masala' .

“Although gutkha manufacturers have found an alternative in paper pouches, it does not suit the current weather conditions. Thereby, the production of gutkha has drastically reduced since the last two months,” it said.

The report does not mention the quantity of reduction in gutkha production.

However, sources in arecanut sector predicted a fall of 40 per cent.

The annual report said that those who were consuming ‘gutkha' are now shifting to traditional paan chewing. With this, the demand for white arecanut has increased, it said. The cooperative advised its members to be cautious on the arecanut price. It said that the import of low-quality arecanut into the country also affects the domestic market. Due to the increase in the cost of imported arecanut this year, the domestic market has improved considerably and may continue for some more time, it said.

“Our cooperative is offering competitive prices for arecanut and is continuously trying to provide remunerative price to the farmers,” it said.

Growers, who were getting Rs 150-160 a kg for red arecanut before the ban on use of plastic sachets in “gutkha” packaging, are now getting Rs 115-130 a kg.

The G.V. Joshi Committee, appointed by the Arecanut Research Development Foundation, had fixed production cost of red arecanut at Rs 148 a kg last year.

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