Agri Business

Despite Covid-induced challenges, Campco helping areca growers

A J Vinayak Mangaluru | Updated on April 25, 2021

Restrictions on the import has brought down the import of the commodity, but there is good demand in the consuming markets

The Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco) Ltd has said that the cooperative has been procuring arecanut from farmers and maintaining the existing price, in spite of the Covid-induced challenges in the consuming centres.

Kishore Kumar Kodgi, President of Campco, told BusinessLine that the cooperative has been purchasing 1.5 tonnes of arecanut a day in the white arecanut-growing regions of Karnataka and Kerala.

Stating that the cooperative has not allowed the rates to come down since over a month now, he said many of the private traders have stopped buying from growers.

April and May are crucial months for the grower-members of the cooperative, as they have various commitments like the repayment of loans, etc. Arecanut sold to Campco gives them financial stability, he said.

“We are purchasing from our grower-members to protect their interests and maintaining the rates also. We won’t allow the price to drop, and there is no need for farmers to be panic now,” he said.

The arecanut-growing regions of Karnataka and Kerala are facing stricter implementation of various measures to control the spread of Covid.

Last year, Campco was among the first agencies to start procuring arecanut from growers when the consuming market was completely shutdown due to the nationwide lockdown last year to tackle Covid. Campco said that its move to buy from growers then had helped bring stability in the market, and avoided farmers resorting to panic selling of the commodity.

Stating that there is no full lockdown now, he said the cooperative won’t restrict purchase of the commodity.

To a query on the situation in the arecanut consuming markets, Kodgi said the restrictions on the import of arecanut has brought down the import of the commodity, and there is good demand for arecanut in the consuming markets. However, many of the ‘paan masala’ manufactures are temporarily closing down their units in places surrounding Delhi due to lockdown and the migration of workers from their units. This has come in the way for the supply of red arecanut, though there is demand for it in the consuming markets.

Transportation of white arecanut from producing centres to the consuming markets such as Gujarat is another challenge being faced by the cooperative.

Stating that white arecanut also has demand in the consuming markets, he said these are transported in trucks, and truckers are hesitant transport the commodity to northern India at this juncture.

He said Campco is planning to set up a godown in Gujarat region in the coming months to meet the requirements of the distribution network in the region. Then the Campco can send the commodity to Gujarat through railway network from the arecanut-growing regions and distribute it, he added.

Based on processing, arecanut is classified as white and red varieties. White arecanut is prepared by drying the ripe arecanut in the sun and dehusking it. Red arecanut is prepared by dehusking green arecanut, and then boiling and drying it. White arecanut is produced in coastal Karnataka and some parts of Kerala, red arecanut is produced in Shivamogga, Davangere and Chitradurga districts of Karnataka. Red variety is mainly used in the manufacture of ‘paan masala’, and white for ‘paan’ preparation.

Published on April 21, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.