The lack of imported stocks in the arecanut consuming markets such as Uttar Pradesh seems to be helping the domestic growers in the country, if the price trend of the commodity during the lockdown period are any indication.
Suresh Bhandary, Managing Director of the Campco (Central Arecanut and Cocoa Marketing and Processing Cooperative) Ltd, told BusinessLine that the new stocks of white arecanut are trading in the range of ₹280 a kg and old stocks ₹310 now.
(In the pre-lockdown market, new stocks of white arecanut closed at ₹267/kg, and old stocks at ₹300.)
He said there is good demand for the white variety of arecanut in the consuming markets such as Uttar Pradesh. In fact, a major portion of these markets were being met by the imported stocks in the pre-lockdown period.
Analysing the market trend scenario during the lockdown period, he said: “It is very clear that the domestic market was getting affected by the imported arecanut in the pre-lockdown period.”
Stating that the lockdown helped stop both legal and illegal import of arecanut to the country, he said the 100 per cent stoppage of import helped improve the domestic market.
Good demand for white arecanut
Ravish Hegde, General Manager of the Sirsi-based TSS (Totagars’ Cooperative Sale Society), also told BusinessLine that there is good demand for white arecanut in Uttar Pradesh market.
Maharashtra and Gujarat are the other two major arecanut-consuming markets. He said the scenario will further improve once the market is opened in these two States. The markets are closed due to the prevailing Covid situation in these two states.
On the red arecanut market, Bhandary said the market is in the range of ₹370-380 a kg, and the arrivals of the commodity are limited.
Stating that the demand is yet to pick up for red arecanut, he said the units manufacturing ‘gutkha’ and ‘paan masala’ are just opening now.
(Red arecanut that is used in the preparation of ‘gutkha’ and ‘paan masala’, and white arecanut in the households in the preparation of ‘paan beeda’ or ‘paan’.)
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