Arecanut prices zoom to record high on short supply

Prices of red and white varieties of arecanut topped ₹500- and ₹300-a-kg mark, respectively, last month. Prices are at a record high for both varieties.

Raveesh Hegde, General Manager of the Sirsi-based Totagars’ Cooperative Sale Society (which markets arecanut), told Business Line that both the red and white varieties are in short supply.

Stocks of red arecanut are almost drying up. Of the total production of around 3 lakh tonnes of red variety, only about 10,000 tonnes are available now, he said.

“Paan masala” manufacturers need around 20,000 tonnes of arecanut a month. Normally they use around 60 per cent of red variety, and mix white variety for the rest.

Because of the shortage in the market now, they are forced to use around 20 per cent of red variety, he said.

Last season, there was over 40 per cent crop loss due to the fruit rot disease in arecanut plantations following heavy rains. Suresh Bhandary, Managing Director of the Mangalore-based Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco), said that the control of the illegal import of arecanut by the Centre has also helped farmers to get good price this year.

All these years, import was taking place when the market for white arecanut reached the ₹170-180-mark.

It is reported that there was crop failure in the countries from where arecanut was exported to India, he said.

The maximum price of white arecanut, which was above ₹220 a kg in the beginning of June, touched around ₹300 by June-end. The maximum price of red arecanut, which was above ₹360 in the beginning of June, crossed around ₹500 by June-end.

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