Arecanut trading at Shivamogga Agriculture Produces Marketing Committee (APMC) resumed with bearish sentiments on Monday, after a gap of 48 days.
Trading was stopped on March 23 owing to the enforcement of lockdown to prevent the spread of COVID-19. On Monday, the cooperative marketing societies as well as private mandis commenced the purchase of arecanut in the Shivamogga market.
The price of Rashi Idi, the common variety of arecanut, that was at ₹38,000 per quintal then was ₹34,000 on Monday. The slump in the price was around 11 per cent. There was similar decline in the price of other varieties also.
Shankarappa D.M., an arecanut merchant and former president of Shivamogga District Chamber of Commerce and Industry, told The Hindu that the decline in price is a temporary phenomenon. With the restoration of normalcy in the supply chain and the production of value-added products from arecanut, the prices will recover, he said.
Devaraj, an arecanut grower from Surahonne in Davangere district said that as the restrictions on the sale and consumption of supari products that were enforced during the early phase of lockdown have been withdrawn, the demand for arecanut is expected to increase. The farmers are expecting a better price in the coming days, he said.
Meanwhile, Araga Jnanendra, chairman of Taskforce on Arecanut formed by the State government, has appealed to the farmers not to sell the produce at their disposal in panic. “With regard to selling, the farmers should take shrewd decisions. As price fluctuations is expected immediately after the resumption of trading, the farmers should bring the stock at their disposal to the market in phases,” he said.
Mr. Jnanendra told presspersons that,the lockdown would prove to be beneficial for the farmers in the long run. As there was no import of arecanut in the past two months, the price of locally grown produce is expected to increase in the coming days, he added.
