The price of arecanut has witnessed a sudden slump in Shimoga market in the past one week.
The arrival of fresh produce in the market and the reluctance of firms engaged in manufacturing of supari products to purchase new produce is seen as the reasons behind the slump. According to sources in the market, the present prices are likely to remain for one more month.
Rs. 570 a kg The price of ‘saraku’ variety of arecanut, that was at Rs. 620 a kg, on September 8 has come down to Rs. 570 now. Similarly, the price of bette variety that was traded at Rs. 550 a kg on September 8 has fallen to Rs. 420 now. Vice-president of Malnad Arecanut Marketing Cooperative Society Narasimha Naik told The Hindu that owing to heavy rain that lashed the region last year, arecanut plantations were infected with fruit rot disease, resulting in a sharp decline in yield and increase in prices.
As the monsoon was normal this year, the yield will be on expected lines and the prices will get stabilised.
Fungus
As packed arecanut products are likely to develop fungus in monsoon owing to excess moisture content in the weather, their production will be less during this period.
Firms engaged in production of supari products do not purchase arecanut in an aggressive manner during this period, said Mr. Naik. This was also one of the reason for the slump in price. D.M. Shankarappa, an arecanut merchant in Shimoga Agriculture Produce Marketing Committee told The Hindu that arecanut prices had witnessed a sudden surge in June owing to mismatch between demand and supply. The price of saraku variety had reached Rs. 850 per kg by last week of June.
‘Healthy correction’ Since the second week of July, the market was witnessing a “healthy correction”, he said. The prevailing prices are likely to emerge as base price for transactions that will take place this year, he added.
