The Hindu Business Line : Gutkha ban threat affects red arecanut more

Addressing mediapersons here on Wednesday, Mr S.R. Rangamurthy, President of the Central Arecanut and Cocoa Marketing and Processing Co-operative (Campco) Ltd, said the red variety of arecanut - which was commanding a price of Rs 220 a kg prior to the `gutkha' ban move - is trading at Rs 110 to Rs 130 a kg. Red arecanut is used in the preparation of `gutkha'.

The ban threat also brought down the white arecanut market though the commodity is not used in the `gutkha' preparation. The old stocks of white arecanut, which were quoting nearly Rs 100 a kg prior to ban move, are quoting at Rs 75-Rs 80 a kg now. New stocks of white arecanut command nearly Rs 60 a kg. White arecanut is used in the preparation of paan.

In a written replay to the Rajya Sabha on December 8, the Union Minister of State for Health and Family Welfare, Ms Panabaka Lakshmi, said: "The Government has no proposal, at present, to ban the sale of gutkha."

Mr Rangamurthy thanked the Union Government for planning to fix a tariff rate for imported arecanut and to set up a quality certification agency for arecanut. Mr B. Nagaraja Shetty, Karnataka Fisheries Minister and former Campco President, said that around 60 per cent of the imported arecanut is being used in the preparation of `gutkha'.

Arecanut Board

Mr Rangamurthy said Campco would buy red variety of arecanut if grown in non-traditional red arecanut-growing areas such as Dakshina Kannada and Udupi districts in Karnataka and Kasaragod district in Kerala. Traditionally white arecanut is grown in these three districts.

At present, Campco purchases red arecanut from rest of the arecanut-growing areas. He said the co-operative has received a request from the All-India Areca Growers' Association to buy red arecanut from these three districts, as some growers have shown interest for its production. Campco will open an arecanut procurement centre at Sringeri next week.

Asked about the progress in the formation of an arecanut board with participation from all the stakeholders in arecanut sector, he said that the proposal was still in the discussion stage.

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