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Arecanut farmers to get better prices during October in Sirsi and Kumta markets

Arecanut is an important cash crop in the Western Ghats, East and North Eastern regions
of India. It is important to note that arecanut cultivation is undertaken with varying extent in
about 18 out of 30 districts in Karnataka. Among which, Chikmagalur district stands first in both
area (20 %) and production (17%), Shimoga stands second followed by Davanagere district. The
top 7 districts viz. Chikmagalur, Shimoga, Davangere, Dakshina Kannada, Tumkur, Chitradurga
and Uttar Kannada occupy 89 per cent of the area under arecanut and contribute around 91 per
cent of areca produced in the state.
Although production is wide spread throughout the Uttar Kannada District.,
marketing is mainly concentrated in Sirsi, Yellapur, Kumta and Honnavar. In these places
Agricultural Produce Market Committees (APMC) are functioning with the best intension of
providing protection to the farmers from exploitation by private traders in the best interest of
farmers of Ankola, Bhatkal, Joida and Mundgod areas along with the places where markets are
situated.
The appropriate information gap is a cause of concern for those who are involved in
making policies and programs in marketing front to protect the interests of arecanut farmers and
to promote arecanut economy in India. In this regard, the Domestic and Export Market
Intelligence Cell (DEMIC), Department of Agri-business Management, University of
Agricultural Sciences, Dharwad is making efforts to take care of the farmers in making
appropriate decisions in marketing of arecanut.
The data on monthly price of arecanut for the past twenty years were collected from
Kumta and Sirsi regulated markets and were analyzed by employing rigorous statistical time
series models and the prices that would prevail in these markets for the next three months for
different variants of arecanut have been predicted. In order to cross check and fine tune the
forecast prices, the opinions and suggestions of arecanut traders, agricultural scientists and
progressive farmers in the respective market areas were also collected. The prices in other major
markets for arecanut and government policies with regard to the crop were also considered which
influence the future prices of arecanut in these markets. There are different variants in arecanut
which are unique to each market. In order to help farmers to decide upon their selling, the Domestic and Export Market Intelligence Cell (DEMIC) has come out with the forecast prices of
the crop in these markets for the next three months. According to the prediction of DEMIC
Dharwad, the prices of “chippu” arecanut would be around Rs.9800-10000 in the month of
August, Rs. 9900-10200 in the month of September and Rs.10400-10800 in the month of
October, the prices of “Factory” nuts would be Rs. 6400-6700 in the month of August, Rs.6600-
6900 in the month of September and Rs. 6800-7200 in the month of October and “Coca” prices
would be Rs.9500-9700, Rs. 9300-9600 and Rs. 9500-9800 in the month of August, September
and October respectively in Kumta regulated market .
In Sirsi regulated market the prices of “Bilegotu” would be Rs.9500-9700 in the month of
August, Rs. 9900-10200 in the month of September and Rs. 9600-9800 in the month of October,
the prices of “Rashi” nuts would be Rs. 16100-16400 in the month of August, Rs.15800-16200
in the month of September and Rs. 15500-15800 in the month of October and “Coca” arecanut
would fetch Rs.9100-9400 in the month of August, Rs 8900-9100 in the month of September and
Rs.9500-9800 in the month of October. The Prices are expected to be increase for Chippu, Coca
and Factory varients in Kumta regulated market and for Chali and Rashi varieties in Sirsi
regulated market. So farmers are advised to store these varieties upto October month. The
storage cost would be 4.00/- per quintal per month. Well dried and graded nuts would fetch
better prices. Hence, farmers are advised to keep these things in mind while preparing the
arecanut for market. This price forecast is as per the present market scenario. If the imports
increase in future, the prices are likely to come down.

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Please note that this is the opinion of the author and is Not Certified by ICAR or any of its authorised agents.