Bengaluru: As temperatures soar in Davanagere district, the arecanut heartland, there’s a silver lining for farmers as the price of arecanut has surged past Rs 50,000 per quintal. This unexpected rise in prices has brought smiles to the faces of growers who had been grappling with various challenges, including dwindling groundwater levels and pre-monsoon water scarcity.
The decline in groundwater levels has compelled farmers to resort to tanker water, incurring significant expenses to sustain their groundnut plantations. Moreover, the challenge of maintaining the estates was exacerbated by the sporadic pre-monsoon rains that only lashed some parts of the district. With tubewells, lakes, and dams running dry, farmers have been relying on tanker water supply to nurture their crops for the past month.
Adding to their woes was the disappointment of not fetching the right price for their arecanuts, further exacerbated by reduced yields due to the scorching heat. The prices hovered around Rs 43,000 per quintal in January and February, prompting many growers to hold onto their produce in hopes of a better price. Warehouses and homes Thota Utpannagala Marata Sahakara Sangha Niyamitha Channagiri (TUMCOS) were filled with arecanut awaiting a price surge.
The wait seems to be over as arecanut prices have been witnessing a steady rise over the past week. On April 15, a quintal of arecanut was sold at Rs 50,539 in the Tumcos market, encouraging growers to sell their stored produce at a minimum price of Rs 48,399.
“The halt in the import of nuts following the announcement of the Lok Sabha elections has contributed to the price rise. Moreover, paan masala companies reduce production during winter due to raw sachets and spoilage, but ramp up production in summer,” explained Tumcos President RM Ravi.
As companies show readiness to buy arecanut at these elevated prices, it’s expected that the current rates will persist for at least another month. This surge in prices has led to the sale of 1,500 to 1,800 quintals of arecanut daily, providing a much-needed boost to the farming community in Davanagere.
With respect to the area under arecanut across different states, Karnataka ranks first with a 5,00,522 hectares with production of 10,81,840 tonnes, followed Kerala with an area of 96,921 hectares with production of 92,755 tonnes, and Assam with an area of 67,021 hectares with production of 50,040 tonnes.
