 "Chinese mouth freshener firm to receive 1st batch of Indian arecanuts")
After tea, China has shown interest in Indian arecanut. The first consignment of a 400 kg-tender of arecanut, which is used by Chinese companies in mouth fresheners will be shipped as samples to China in the coming days.
Chinese firms are working with Campco, a co-operative of arecanut and Cocoa farmers, to source arecanut from India.
M Suresh Bhandary, managing director, The Campco Ltd, said that one trial batch consisting of 400 kg of sample packs will be dispatched this week for quality acceptance. The raw material is ready and since it is the first time, a lot of customs formalities are being carried out.
Campco will supply to Kou Wei Wang (King of Taste), one of the largest mouth freshener manufacturers in China.
The buyer has already visited here and is happy with the raw material quality, said Bhandary.
However, the problem is price mis-match which is around Rs 50-60 per kg lower than quoted, but as volume picks up this issue will be addressed, he added.
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The Chinese buyer has indicated its preference for the first quality arecanut for its needs and have indicated a price of Rs 350-400 a kg.
The husk of tender nut is used widely in China to make mouth freshener and other edible items after due processing there. arecanut is grown to the tune of 1.22 lakh tonnes in Hunan province of China annually, but the demand is estimated at around 7 lakh tonnes.
There are over 20 manufacturers of arecanut mouth fresheners across China. As more Chinese are using mouth freshers to quit smoking, the supply is not enough.
Bhandary noted that the Chinese firm, which has signed a memorandum of understanding with Campco, is currently not able to cater to the demand, due to lack of adequate raw material.
Major portion of this demand for raw material has been catered to by Indonesia, where it is a wild crop, and Myanmar, among other countries.
India's arecanut production is estimated to be around 7.03 lakh tonnes. Till few years back, this crop had been attractive, but due to imports the price has dropped from nearly Rs 75,000 per quintal to almost Rs 25,000-30,000 now. This was a major inter-crop for coffee growers, who are bordering unsustainability.
Besides, around 50,000 tonnes of arecanut production is getting added as more farmers are switching over from paddy to this crop, which is putting more
pressure on pricing.
As part of the de-risking strategy, growers are now looking at export markets. Earlier, arecanut used to be exported to Pakistan, but in a very small quantity. It will also help the growers in the eventuality that courts in India ban supari and gutka completely, Bhandary said.
"If the Chinese market is catered to, then their will be a huge demand and it will help farmers," Bhandary added.