Campco seeks extension of support price for arecanut

Mangalore-based Central Arecanut and Cocoa Marketing and Processing Cooperative Ltd (Campco), which has been appointed the nodal agency for procuring white arecanut by Karnataka government, has sought extension of the market intervention scheme (MIS) from the state government for two more months till the end of May 2010.

The cooperative has been procuring white arecanut from farmers directly from February 16 at a support price of Rs 75 a kg and has opened 15 procurement centres across the major growing areas. As on March 29, 2010, Campco has procured 1,116 tonnes valued at Rs 8.37 crore. With the closure of the scheme on March 31, 2010, Campco has spent close to Rs 10 crore to procure arecanut from the farmers.

The new crop will continue to arrive till June-end.

“The Central government had fixed Rs 69 per kg for white supari and Rs 89 per kg for the red supari. The state government added another Rs 6 per kg and asked to procure on their behalf at Rs 75 per kg. The state government has till now released Rs 8 crore for the purpose and we estimate that another Rs 1.5 crore worth of arecanut would be purchased by March-end,” A S Bhat, executive director, Campco told Business Standard.

The price of white variety of arecanut was in the region of Rs 90-95 per kg during October 2009. As a result of this, the MIS was not implemented for white supari. When the rate dropped to Rs 60 per kg with the commencement of the present season, Campco asked the state government to implement the market intervention scheme. The scheme was launched on February 16.

He said, considering the huge response from growers, there is a need to extend the market intervention scheme for two more months. “Campco has written to the state government requesting for extension of the MIS for two more months. The scheme, most probably, may be extended till the end of April. The government has promised that the scheme be extended further. But, a government order is yet to be issued in this regard,” Bhat said.

Campco has opened procurement centres at Kumta, Honnavar in Uttara Kannada district, Kundapur and Karkala in Udupi district, and Adyanadka, Baikampady, Belthangady, Kadaba, Mudipu, Padpinangady, Puttur, Sullia, Uppinangady and Vittal in Dakshina Kannada district to procure new crop of white arecanut. Apart from Rs 8 crore released by the state government, Campco has utilised its internal funds to procure the crop from farmers. The cooperative is procuring up to five quintals from each farmer as per the MIS. In the next two months, Campco is likely to procure another 15,000 quintals valued at over Rs 12 crore, he said.

Procurement of new stocks of white arecanut under the scheme has so far helped 4,776 small and marginal farmers in these districts, he said. After the MIS was launched, the open market price for the commodity has steadily increased to touch Rs 72 per kg.

Karnataka is the largest producer of arecanut in the country. For the year 2008-09, the state accounted for 46 per cent of the total production at 224,000 tonnes.