To bail out arecanut (betel nut) farmers in Karnataka, suffering from a sharp drop in prices following a Supreme Court order on banning the sale of gutkha in plastic sachets, the Centre on Monday promised it would come out with a market intervention scheme to enable state agencies purchase the produce.
“We spoke to the Union agriculture minister about the problems of arecanut farmers. He has agreed to set up a market intervention scheme in the state to procure the commodity,” Chief Minister B S Yeddyurappa told reporters after meeting Union Agriculture Minister Sharad Pawar.
Leader of the Opposition in the Assembly, Siddaramaiah, and Union Law minister M Veerappa Moily were also present in the meeting.
The delegation from Karnataka is also believed to have met the Prime Minister on Monday to discuss the plight of the arecanut growers.
The funding of the scheme would be shared equally by the Centre and the state government, Yeddyurappa said, adding that the modalities of the scheme would be worked out tomorrow.
Arecanut is the seed of the areca palm and it is known as “betel nut”. It is largely grown in Karnataka.
More From This Section
According to an official from the Karnataka horticulture department, prices of arecanut have more than halved to Rs 60 a kg from Rs 130 a kg in the last one month as procurement by gutkha manufacturers has virtually stopped following the recent Supreme Court ban on the sale of gutka and pan masala in plastic sachets.
In Karnataka, arecanut is grown in about 200,000 hectares and the production is expected at around 224,000 tonnes in 2010-11.
At a national level, the crop is cultivated in around 400,000 hectares and the production is estimated to be 477,000 tonnes.