The price of arecanut has escalated by around 20% in a short span of three months because of the mismatch in demand and supply.
The price of rashi idi variety of arecanut, which was ₹34,000 a quintal in the first week of December, has hit ₹40,800 now. The price of saraku, chali and other varieties have also increased.
Mallesh, an arecanut trader from Channagiri, blames it on the decline in yield owing to inclement weather in arecanut-growing areas. He said the semi-arid regions of Karnataka witnessed three consecutive droughts from 2017. There was a significant loss of yield owing to moisture stress. In Davangere district, arecanut on more than 7,000 hectares of land completely dried up in 2019 owing to drought. Also, the arecanut yield in Holalkere and Hosadurga taluks of Chitradurga district, Tarikere taluk of Chikkamagaluru district, Shikaripur and Sorab taluks of Shivamogga district, and Hanagal and Hirekerur taluks of Haveri district, where growers are dependent on borewell water, came down during this period owing to depletion of the groundwater level, he said.
The heavy rain that lashed Malnad regions from August to October last year triggered kole roga, also known as fruit rot disease, in arecanut crop in the region. In Shivamogga district, arecanut crop on more than 13,000 hectares was infected. Mahabaleshwar, an arecanut grower from Tirthamattur in Tirthahalli taluk, says that more than 80% of the crop cultivated on his five-hectare land was destroyed by kole roga.
From the past three months, caterpillar and inflorescence dieback infestations have been reported in arecanut crop in Malnad region. While cold conditions prevail here at night and in the morning, the noons were scorchingly hot. The extreme heat during noon, which was unusual in Malnad during winters, triggered infestations, owing to which premature dropping of arecanut flowers and tender nuts was reported. Root-grub disease has also been reported from plantations in the command area of Tunga and Bhadra reservoirs. Insiders in the market feel that owing to these infestations, arecanut yield during the next phase of harvesting is likely to remain low, and arrivals of the produce in the market will not be on the expected level.
Shantharaj, an arecanut trader, said that as the inventories with the farmers as well as with the mandi merchants are low compared to the demand, and as there will be a decline in arrivals owing to pest and fungal infestations, the demand and supply mismatch will continue and prices will remain bullish for the next few months.