Arecanut farmers fall into debt trap

A steep fall in prices, poor yield, shortage of skilled labourers and ever mounting cultivation costs have pushed arecanut growers, who enjoyed a respectable status here in the olden days, into a deep debt trap.

Centre's steps to impose hefty duty on arecanut imports has had practically little impact, with the price remaining abysmally low in relation to mounting costs, the farmers said.

The arecanut from Kerala's North Malabar region and South Canara district of Karnataka was known for its high quality.

The price, which was Rs 200 per kg in 1999, went down to Rs 50 to Rs 55 a kg in 2001-02 and now fetches Rs 60 and Rs 70 a kg after stringent grading of the nut. This is quite inadequate in relation to inflationary pressure and mounting labour charges, said M Ranjith, a young farmer in the hilly belt of this northern district.

"One can sustain only if arecanut fetches at least Rs 100 per kg in view of rising expenses in taking care of trees and spraying of copper sulphate solution to prevent pest attacks," Ranjith, who manages around 5,000 areca trees, said.

Unlike coconut, arecanut trees have to be irrigated regularly and are more prone to natural calamities.

While prices of manure and pesticides registered a steady rise over the years, successive governments have failed to provide adequate subsidy, said Mohammed Kunhi, another farmer.

Charges of tree climbers and extraction of arecanut from the shell have also risen.

There was an acute shortage of skilled labourers as new generation shy away from taking up the traditional job, said Ranjith.