Demand from pan masala makers raises arecanut prices
KOCHI: Arecanut prices are firming up again after taking a hit post demonetisation, thanks to an increase in the minimum import price and a revival in demand from pan masala makers.
With curbs on cash withdrawals from early November, pan masala sales had declined in the major consuming regions of Gujarat and UP, pulling down the prices of arecanut, the main ingredient in the product.
Prices fell 7-14% for different varieties from the pre-demonetisation levels, as major buyers reduced purchase of arecanut.
“Areca nut prices have since increased by over 10% with sales of pan masala picking up. The hike in minimum import price from Rs 162 to Rs 251 per kg has also contributed to the price rise,” said M Suresh Bhandary, MD, Central Arecanut and Cocoa Marketing & Processing Cooperative.
The prices currently range from Rs 220 per kg for the white variety to Rs 290 for the red one. A month ago, the government increased minimum import price, heeding to demand from growers who complained about growing imports from Lanka and Bangladesh.
With curbs on cash withdrawals from early November, pan masala sales had declined in the major consuming regions of Gujarat and UP, pulling down the prices of arecanut, the main ingredient in the product.
Prices fell 7-14% for different varieties from the pre-demonetisation levels, as major buyers reduced purchase of arecanut.
“Areca nut prices have since increased by over 10% with sales of pan masala picking up. The hike in minimum import price from Rs 162 to Rs 251 per kg has also contributed to the price rise,” said M Suresh Bhandary, MD, Central Arecanut and Cocoa Marketing & Processing Cooperative.
The prices currently range from Rs 220 per kg for the white variety to Rs 290 for the red one. A month ago, the government increased minimum import price, heeding to demand from growers who complained about growing imports from Lanka and Bangladesh.
