Cheap imports, rains hit areca mart

Arecanut trade in southern states, which is already in the doldrums due to import of low quality nuts at cheaper rates, is in for more trouble this year, thanks to the fury of raingods.

The production of arecanut is likely to drop by 50 per cent this year following the spread of the fruit rot disease (Kole roga) due to incessant rains in the Malnad and coastal belts of Karnataka and Kerala.

While it is predicted that the prices may rise this year following shortage in crop, there are fears that it will be neutralised with cheap imports.

According to initial estimates by Karnataka horticulture department, arecanut crop in as much as 88,609 hectares spread over the districts of Dakshina Kannada, Uttara Kannada, Udupi, Shimoga and Chikmagalur is affected by the disease. These districts accounted for about 148,000 tonnes, approximately one-third of the total arecanut production last year in the country.

According to Central Directorate of Economics and Statistics, about 5 lakh metric tonnes of arecanut is grown in nearly 4 lakh hectares in the country. Karnataka accounts for over 40 per cent of the country's total arecanut production. Last year, the state produced about 2.20 lakh tonnes.

Fruit rot disease is common in monsoon season in Malnad and coastal belt. It is brought under control by spraying Bordeaux mixture (a fungicide consisting of a mixture of copper sulfate, lime, and water). However, this year the farmer could not spray the bordeaux mixture due to continuous rainfall between June 10 till end of August. As a result of this farmers have not only lost their crop but investment on bordeaux mixture. In some areas despite applying the mixture there was no effect on the disease as the rain had washed off all the insecticide.

Over the last few years, arecanut trade has been constantly under the threat of cheap imports from countries like Nepal, Indonesia, Thailand, Malaysia and Vietnam. Last year, the country imported 54,000 tonnes of arecanut at Rs 13.67 per kilogram. While the domestic prices ruled in the range of Rs 70-110 per kg.

The Union government has ordered for restricting of imports of arecanut from Mangalore port alone.