![]() Financial Daily from THE HINDU group of publications Friday, Aug 23, 2002 |
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Agri-Biz & Commodities
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Plantations Gutkha ban a blessing, say supari traders Our Bureau
MANGALORE, Aug. 22 WHILE various growers' co-operatives led by the Central Arecanut and Cocoa Marketing and Processing Co-operative (Campco) on the one hand have come out strongly against the decision of several State governments to ban gutkha, supari traders on their part have decided to take an optimistic view and insist that the ban could well prove to be a blessing in disguise for the entire arecanut trade. Reacting to statements by various growers' and traders' organisations, the Karnataka State Commission Agents' Association and the Supari Shippers' and Brokers' Association have sought to put the matter in what they consider to be the proper perspective. In a joint statement issued here, Mr Murlidhar Ramani and Mr H. Ashok Shenoy representing the commission agents and brokers, after considering the `real facts', contend that `in the ultimate analysis there is a bright future for the supari market.' On the basis of an `in-depth study' of the areca market taking into account the views of traders and petty beeda/beedi outlets selling gutkha in some parts of Maharashtra, the brokers and commission agents have come to the conclusion that the non-availability of gutkha has made consumers switch over to arecanut. This, according to the study, has resulted in a five-fold increase in the consumption of arecanut and, from August 1 onwards, the demand for arecanut from Maharashtra has witnessed a three-fold increase with the price too having gone up by Rs 5 per kg. The reasoning of the traders goes something like this: one packet of gutkha contains, apart from other ingredients, only two grams of arecanut. Therefore one kg of arecanut can be used to produce as many as 500 packets of gutkha. However, due to the ban on gutkha, when a consumer has to go in for a substitute for gutkha, the minimum quantity that he has to buy is 10 grams. Since one kg of arecanut will go into the production of only 100 packets of arecanut, a five-fold increase in consumption is only to be expected. The brokers and traders, however, do not want to get into a controversy about this issue. According to them, statements issued without a careful and in-depth study of the current situation would ultimately do more harm than good. Moreover, in the Dakshina Kannada district of Karnataka, barely 7-10 per cent of the total arecanut produced is used for the manufacture of gutkha, according to the traders.
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