Decline in yield leading to steep increase in prices of arecanut

The widening gap between demand and supply is contributing to the price escalation

Moisture stress has resulted in premature dropping of flowers and immature nuts in the arecanut plant in Shivamogga.— File Photo

The decline in the yield of arecanut owing to drought prevailing in the district for second consecutive year has resulted in an escalation in the price of the produce.

The price of rashi variety of arecanut that was at Rs. 240 a kg on September 15, 2016 has increased to Rs. 300 now. The price of idi, gorabalu, saraku varieties have also increased by around 25 per cent.

The inflorescence part of the arecanut flower has not been opening up properly owing to moisture stress caused by the prolonged dry spell. The pollination process has also been adversely affected as a result. The moisture stress has also resulted in premature dropping of flowers and immature nuts. Owing to these factors, the arecanut yield is likely to decline by around 40 per cent in Shivamogga district this year.

A similar situation prevails in other districts also.

A.M. Halesh, an arecanut grower from Anapur village told The Hindu, the average yield per acre of land is around 12 quintal. Unfortunately, owing to drought, the yield has come down to 7 quintal this year.

D.M. Shankarappa, an arecanut merchant with Shivamogga Agriculture Produces Marketing Committee told

The Hindu, the gap between demand and supply is widening resulting in an escalation of the price. The region is facing drought for second consecutive year owing to which the yield and the flow of produce to the market has declined. The gap between the demand and supply is likely to widen in the coming days that will result in further increase in the price, he said.

Further increase

The escalation in the price of the produce has surprised both the traders and the farmers.

As the fresh produce enters the market from the first week of September, the prices used to come down every year during this period. However, owing to vagaries of climate, the trend has changed this year. According to sources, farmers are speculating a further increase in the price and are reluctant to sell the produce at their disposal.