3 days ago
No Shravan surge: Arecanut prices stay flat for 2nd consecutive year
Sirsi: The annual trend of a price hike for arecanut during the Hindu month of Shravan has not materialised this year either, leaving many arecanut growers in the region disheartened. For the second consecutive year, there has been no significant price increase, despite farmers storing their produce in anticipation of higher one of the major commercial crops of Uttara Kannada district, has seen its market price stagnate. The seasonal price is continuing throughout the year, causing disappointment for farmers. At present, the average market price for Chali arecanut stands at around Rs 40,000 per quintal, while red arecanut fetches about Rs 46, about 50% of the growers sell their produce during April and May, while around 15% sell during the monsoon. Economically stable farmers or those expecting better rates traditionally wait until the Shravan season, as demand historically surges during this period, often pushing prices up by Rs 6,000 to Rs 10,000 per quintal. However, this year too, as in the last two, the expected spike has failed to materialise, leading farmers to reconsider waiting until Shravan in the demandAccording to co-operative society officials, the main markets for Sirsi arecanut-- Gujarat, Maharashtra, and Uttar Pradesh-- have shown reduced demand this season. 'These regions have experienced higher rainfall, leading to lower demand from traders. Moreover, if low-grade arecanut is available locally in those areas, it further reduces their interest in purchasing from here. As a result, even though arecanut has reached local markets, the prices have not gone up,' they losses add to woesFarmer Narasimha Hegde shared his concerns: 'Last year's erratic weather, heavy rains, and fungal diseases caused significant crop damage. Due to lower yields, farmers hoped for better prices. But the market has remained flat for the past two years, and storing produce in anticipation of better prices has only led to losses.'Growers say they need at least Rs 50,000 per quintal for Chali arecanut to break even and sustain their livelihood. 'Labour costs are rising daily, pesticide spraying is expensive, and skilled workers are hard to find. On top of that, diseases like leaf rot are becoming more severe. Yields have dropped by nearly half. In such times, if prices do not increase, it becomes extremely difficult for farmers to survive,' say many continued stagnation in arecanut prices, even during the traditionally high-demand Shravan season, has brought distress to growers across the Sirsi region. With rising production costs, falling yields, and declining demand from key states, the road ahead seems uncertain for the arecanut farming hike may further reduce demandLocal traders and co-operative societies in the region have the option to increase the price of arecanut in the local market. However, doing so could discourage buyers from other states from participating in tender processes or purchasing arecanut from this region altogether. Additionally, lower-priced, inferior-quality arecanut from other regions may enter the market as a from countries like Burma (Myanmar) and others are also putting additional pressure on local arecanut prices. According to co-operative society leaders, the arecanut market is currently maintaining a stable price, and this trend is likely to continue.
