Mamcos

Dr.
Ambedkar College, Shivamogga

CONTENTS
Page No.
1. Introduction 02
2. History of Product 10
3. Cultivation Management 25
4. Marketing 39
5. Marketing of Arecanut 57
6. A profile of Kuntinamadu s. Mallaiah & Sons 81
7. Analysis of the Survey 87
8. Problems, Suggestions and Conclusions 94
Annexure 99
Questionnaire
Bibliography

Dr. Ambedkar College, Shivamogga

CHAPTER-1
INTRODUCTION
Introduction
Objectives of the study
Methodology
Scope of the study
Limitation of study


INTRODUCTION
General Introduction
Betel name is applied to the different plants that are used in combination for
chewing or masticating purposes throughout wide areas of Southern Asia and East
Indies> Betel chewing is a habit of an estimated one tenths of the worlds
population. The betel nut is the seed of the areca, or betel palm (Areca catechu),
family Palme and the betel leaf is from the betel pepper or Pan Plant (piper beetle),
family Piperaceae.
The areca palm, cultivated in India, Ceylon, Thailand, Malasia and the
Philippines, has a slender, unbranched trunk reaching 12 or 15 meters high and 45
centimeters across, topped by a crown of six to 9 large fronds. The fruit is about
the size of a small hens egg. Within its fibrous rind is the seed, or so called nut,
the abumen of which is hard and has a gray and mottled appearance.
The fruits gathered between August and November, before they are quite
ripe, are husked, boiled, cut into slices and dried in the sun, becoming dark brown
or black.


For chewing a small piece is wrapped in a leaf of the betel pepper with a
pellet of lime or chunam to cause salivation n and release the stimulating alkaloids.
In some cases, a little cardamom, turmeric or other aromatic is added. Chewing
results in a copious flow of brickred salvia, which may temporarily dye the mouth,
lips and gums orange brown. Contrary to general belief, the teeth of habitual
chewers are not blackened by the betel juice, but chewers artificially stain the teeth
black.
Betel nuts are a source of inferior catechu: its chief alkaloid is are coline a
drug used by veterinarians as a worming agent.
Areca nuts are one of the important commercial crops in India. It plays a
proximal role in the religions, Social and cultural life of our people.
The betel nut is the seed of areca or betel palm and the leaf from the betel
pepper \ pan plant. Areca is used for chewing. It is chewing with betel leaf and
lime of chanan and little cardamom added with it. The people chew it with betel
leaf and lime after the food for digestion.
Areca is grown in the hot and humid regions of India, Bangladesh, Sri
Lankha and Malaysia & to the smaller extent in the east inclines & Burma. It is


grown with coconut, Jack mango, banana, & spice. Areca nut is used in India by all
section of the people. It is useful in one way\ other.
Areca nut is one of the main ingredients of Thambula chewing of which, it
is getting to be universal habit forming luxury to the rich & poor people alike. It is
used in Ayurvedic & veterinary medicine because of its several alkalize.
Chewing results in a brick red solution, which coil temporary dye the mouth
& lips, become orange brown. The aromatic, which is used in areca out, is help full
in avoiding the bad smell. As a case study is a part of BBM Course, my subject
holds with the study of Production and Marketing of Areca nut. Under taking
by Kuntainamady & Mallaiah and Sons.
Objectives of the Study:
1. To know the marketing of areca nut in India.
2. To study the methods of marketing.
3. To know the role played by the Areca nuts.
4. To know why the formers prefer a particular co- operative society
5. To know the reasons for selecting the co- operative society.


6. To know the problems of the growers.
7. To find out the solutions to the problems faced by the former
8. To suggest some ways and means for production & marketing of produce.
Scope of the Study
Shimogga market of areca nut is an important market this particular, market
area is taken for survey by 60 areca nut growers to elicit problems faced by the
production, processing and marketing of Areca nut.
The study concentrates on the made to cover all aspects of marketing of
areca nuts i.e Buying, selling, Assembling, Grading, Marketing etc.
The nations is really composed not of money but of the goods and services
which money can buy.
A reduction in the cost of marketing is a direct benefit to society or co-
operation.
Marketing process brings new varieties quality & beneficial goods to
consumers
Approximately one- third of all persons gainfully employed in the country
are engaged in the field of marketing.


Scientific marketing has a stabilizing effect on the price level.
In a country like India that is striving to break the age old bandage of man
to misery.
Marketing bring to the very doors of the peasants useful implements
It adds value to services eg: b\s, medical entertainment and educational services by
performing the services involved.
The object of the marketing as of all productive activities is to satisfy human
wants we do not consumer or take bread to give the farmer a market for his
product, but what he group is the demand of the people & if that is not satisfied in
the locality itself it is imported from other center of productions

Methodology:
Methodology employed different from one project to another depends upon
the nature of the problems. And the extra to which information received,
methodology mean connotation used to work out of the problems.
This study carried out by using the following methods. This project study is
mainly based on primary as is collected by administering a stautured questionnaire


from the selected formers. Personal interview is also conducted wherever
necessary.
The secondary data is also collected to support out study from various
sources like Areca nut markets. Annual reports of Areca, Adike pathrike,
Magazines, Periodicals news paper etc.
The collected data is classified, tabulated and analyzed to draw meaningful
conclusion and to suggest some useful measure to improve the production and
marketing of Areca nut.
Limitation of the study:-
Being the areca nut marketing in a national level the survey has been
restricted to Shivamogga. The sample size selected is due to pacing of time. The
figures in survey finding are given on the basis of 100 formers. The study does not
show the position of entire market of Areca nut in Shivamogga but represent only a
certain places of Shivamogga.
It deals with research design.
It deals with historical background of Areca nut.
It deals with agriculture marketing in India.


It deals with marketing of Areca nut.
It deals with profile of Kuntinamadu S. Mallaiah & sons, Shivamogga
Branch.
It deals with an analysis of survey conducted.
It deals with summary of survey conducted followed by conclusion &
Suggestions.


CHAPTER-2
HISTORY OF PRODUCT
Introduction
Family of Areca nut
Antiquity of the Areca nut
Origin and Distribution of the Product
Areca nut in India
Areca nut Gardens in Karnataka
Research and Development of the Product
Uses of Areca nut


Introduction:
Areca nut is popular as a masticator used either with betel leaves or as
plain or as scented supari. Areca nut has uses in Ayurvedic and Veterinary
medicines, because I of its several alkaloids but its utilization in this manner
is negligible on the whole, The habit of chewing areca nut is typical of the
Indian sub- continent and its neighborhood. Its demand in other parts of the
world is chiefly from the section of the population who migrated originally
from this sub continent. The production of areca nut is also largely
confined to this sub- continent.
Betel nut the seed of the betel palm (Areca catechu) which is chewed
as a stimulant throughout. Southern Asia. The betel nut is about 2 inches
(5cm) long and is mottled brown and grey in color. The ripened seeds are
gathered between August and November, boiled in water, cut into slices and
dried in the sun, giving a dark brown or reddish in color. Each dried nut is
then wrapped together with piece of shell lime in a leaf of the betel pepper
and chewed.
Betel nuts contain the alkaloid arecoline a mild stimulant that
produces a feeling of well being. They are not habit forming but habitual
chewing of betel nuts eventually blackens the teeth and may cause them to


decay. In some parts of the orient, betel nuts are used a drug to destroy
intestinal worms. Elsewhere they are used as preliminary in veterinary
medicine to de-worm horses, dogs and other animals. It is sometime
prepared raw by drying smoking or salting. The pieces are rolled in a leaf of
better vine smeared with quick lime. Betel color saliva red and blackens the
teeth that are neglected.

FAMILY OF ARECANUT
The areca nut palm is a very popular tree in South India, yielding the
much favored masticator areca nut betel nut or Supari.It is extensively used
in India by all sections of the people as a masticator, and is an essential
requisite for several religious & social ceremonies. Consequently, the areca
nut palm occupies a prominent place among the cultivated crops in the states
of Karnataka, Assam, Kerala, Meghalaya, Tamil Nadu and West Bengal and
is of considerable economic and socio religious importance for the entire
country. It has enjoyed the patronage of the ancient rulers who strived hard
for the betterment of the crop during their times.
The areca palm belongs to the family PALMAE of
monocotyledons. An unbranched slender stem and a dense crown of green


healthy leaves each leaf composed of many leaflets are most characteristics
of this palm. (According to taxonomy areca nut palm have been classified
under the following way.
PHYLUM : PLANTAE
SUB PHYLUM FANEROGAMAE
DIVISION TRACHEOPHYTES
SUB DIVISION ANGIOSPERMS
CLASS MONOPLOTYLE BONOUS
SERIES CALICIN
ORDER PALMAE
FAMILE ARECACEAE
GENUS ARECA
SPECIES KATECHU
Areca nut is one of the main ingredients of Thambula, chewing of
which is getting to be a universal habit forming luxury to the rich and poor
alike. Areca nut is popular as a masticator used either with betel leaves or as
plain or as scented supari. Areca nut was uses in Ayurvedic and veterinary
medicines because of its several alkaloids but its utilization in this manner is
negligible on the whole. The habit of chewing areca nut is typical of the


Indian Sub- continent & its neighbor hood. Its demand in other parts of the
world is chiefly from the section of the population who migrated originally
from this sub continent. The production of areca nut is I also largely
confined to this sub continent.
ANTIQUITY OF THE ARECANUT
Areca nut which has the nomenclature areca catechu is also known as
Supriya, Supari, chali, Chalyia, Poogaphala, kramuka, Brahmadaru,
Chikkana, Areca& kangu. Innumerable references are found in several of the
ancient Sanskrit texts to areca nut palm in Rig-Veda it has been referred to
Devejuta. Areca nut has also been mentioned in Rig-Veda, Ramayana,
Mahabharata, skanda purana, Soma Devas Katha Saritsagara, Vagbhats
Astanga hrudaya and Banabhattas Kadambari. It has been described by
such poets as Kalidas, Shudraka, Harsha, Amaruka. Vagbhata in his
scriptures has describred the medicinal properties of areca nut. Bhavamishra
in his Bhavaprakasha has written that arecanut has stimulating
anddigestive properties. Vishnu Sharma in his Hitopadesha has written
that areca nut is a spice having hot and sweet & bitter taste. It is also
effective in relieving cough, anemia & reducing bad smell emanating from
mouth. It also kills germs causing international problems.


Origin and Distribution of Areca nut Palm.
Considerable speculations around the origin of the areca nut palm,
these scenes to be no record of fossil remains of the genes areca. But the
abundance of the palm general discovered in the form of shells, leaves &
stems from the history period probably indicates that this genes was
inexistence as for back as the period.
According to Walt, it is a native of Cochin, China, Malaya, peninsula
and neighboring island & according to Thomas green areca nut is native of
the east Indias Cochin and China.
Areca nuts have been reported from Indonesia, India, Srilanka,
Southern, China and Taiwan Javes and bolter agreed with mortises and de-
bondable in starting that the exact native country of the betel nut palm is
uncertain. As the tree has been extensively cultivated from the immemorial
in all part of East India. Ported sated that the theories as to original habitat of
areca might be misleading it based on uncertain reports unless it could be
proved beyond doubt. An investigation of the range of distribution in a
given locality where the plant is thought to be yield may perhaps throw
further light on the origin, but he was certain that the original home of areca
is not in America.


Cultivation of areca nut and its Economic importance
The evidence used in the for going sections on the antiquity of areca
nut of the chewing habit and of the multifarious used to which areca nut is
put in our, everyday life bear out that the area nut has been in cultivation
and use in India from the immemorial extensive coastal trade and export
existed in areca nut during the later half of 19
th
century has been mentioned
by Walt geode started that kanara is famous for betel nut, as it approached to
have been more than 1,200 years ago. He also quoted evidence to show that
betel nut plantations were a regular feature of the agricultural economy of
Bengal from 1,100 to 1,300.
Though areca nut chewing habit is still prevalent through out Asia it is
only in India that crop is cultivated and research on various aspects of this
plan is being carved out. Cultivation is practiced along the narrow coastal
belt, external form Kutch down south to Maharastra, Karnataka, Kerala and
west coast of Tamil Nadu, Andhra Pradesh and Orissa, Bengal and Assam
with the largest concentration in southwest India.
Arecanut palm is cultivated for its kernel obtained from fruit which is
widely used by people for chewing in tender, ripe or processed from on
account of the various researches & development efforts undertaken in the


past three decades, Considerable speculation surrounds the origin of the
areca nut palm. There seems to be no record remains of the form of shells,
leaves & stems from the tertiary period probably indicates that this genus
was in existence as for back as that period. According to walt, it is a native
of Chaina, Malaya, Sinagapur, Philiphines peninsula & neighbouring island.
According to Thomos green arecanut is a native of the East Indies and
China.
Following table shows the production of arecanut in the principle
growing countries.

ARECANUT PLANTS IN INDIA
Areca nut is not a native of India. But it is an introduced plant. Though it is
grown in the topical zone extending from West Indies to the east coast of Africa.
Philippines is generally supposed to be the home of areca nut, mainly the because
of the presence of large number of varieties. No India is the largest areca nut
Country Area in Hectares Production in Tonnes
1. INDIA
2. BANGLADESH
3. SRILANKA
4. MALAYSIA
20,22,300
10,05,800
3,02,000
7o,750
20,48,300
9,08,530
6,08,500
6,0,450


grower in the world. It contributes a lions share of the world production of areca
nut.
The exact date of the introduction of areca nut cultivation in India is not
known. In India, the areca palm is cultivated all along the Western Coast from
Maharashtra to Kerala on the plateau of Karnataka, in the Genetic delta of west
Bengal, Assam and Meghalaya. The fruits are largely used for chewing with or
without betel leaf.
In south India, the conditions of cultivation are quite different from those
prevalent in Eastern India. Unlike the eastern Zone, areca gardens of the south
zone have to be constantly looked after and a lot of labour and money is spent on
them throughout their lifetime. Areca nut is often the principal, and in several
instances the only cash of the locally in which it is produced.
Following table gives the are under the production of areca nut in the
different states of India.


Sates Area (in 10000
Hectares)
Production (In
10000 Tonnes)
Average
production in kg\
Hectare.
Andra Pradesh 0.2 0.1 5000
Assam 70.3 55.3 7870
Karnataka 64.1 94.1 14700
Kerala 62.0 66.2 10680
Maharastra 1.9 2.9 15260
Meghalaya 8.7 8.4 9660
Tamil Nadu 2.8 3.6 12960
Tripura 1.4 2.5 17860
Goa 1.3 1.5 11540
`West Bengal 6.3 8.7 13810
Pondicherry 0.1 0.1 10000
Andaman &
Nicobar
3.2 4.8 15000
222.3 248.2 144340


ARECANUT CROP IN KARNATAKA
State is the largest areca nut garden in the country. Areca nut garden has
formed about 64,100 hectares of land in the state & about 94,200 of areca nut is
produced annually. This is not only a cash crop of these regions, mainly grown in
home stead gardens but also important sources of livelihood of local people too.
In the state the major areca nut growing areas are mainly found in the coastal
and malnad districts of South canara, north canara, Shivamogga, Chikmanglor,
kodagu, Udupi and in some of maidan districts such as Tumkur, Chitradurga,
Hassan, Bangalore, Mandya, and Mysore. Among these districts South canara
alone contributes 25% of the total output for the state.
The method of cultivation in malnad is quite different from the methods
adapted in maidan traits. The gardens in malnad are situated in valleys and foot-
hills of Western Ghats which receive the torrential rains of the south west
monsoon. The growers select valley & foot hills in order to protect the palm from
western sun strokes. The area of cultivation in maidan districts occupy open level
lands. Most of the other areas growing areca are commanded by irrigation. In the
state arecanut is grown as a main crop along with it subsidiary crops like, coco,


mango, coconut, banana, pepper, belenuts, pine-apple and cardamom can be
grown.
RESEARCH AND DEVELOPMENT OF THE PRODUCT
In spite of the importance which the crop had been enjoyed over centuries,
very little research work had been done on arecanut. Scientific knowledge on
agronomic and other requirements for ensuring profitable yields was looking. India
leads in production but even then, it was never sufficient to meet the internal
demand until recently. It has to depend upon imports to fulfill the gap.
The data pertaining to this crop has been collected by the Directorate of
Economics and Statistics. Organised research work on this crop is being
conducted from the last three decodes or so. For the first time in 1945, Government
made a financial assistance to Indian Central Arecanut research (ICAR) of the
purpose of developing the production and marketing of areca nut.
The Indian Areca nut committee (ICAC) was constituted in 1949 on the
recommendations of an Adhoc committee appointed by (ICAR) research in the
following stations.
Main stations at Central Plantation Crops Research Institute,
Kasaragodu(Kerala). Its Regional branches in Vittal and Hirehalli of Karnataka


state. And it has its sub stations at Polode and Peechi (Kerala), Sreevardhan
(Maharastra) Mohitanagar( West bengaL), Kalikuchi (Assam), SipiGhat( Andaman
Nicobar)
Although the technological work has been done in the past in a scatted
manner on an adhoc basis and many remain unavoidable to some extent in further
too, it is expected that many problems on the side of utilization will also be
attended to in further. As a result of research work, a few exotic varietie of
arecanut have been identified for better performance over the local ones. Studies
have been made on methods of raising plants, selection of seed nuts and seedlings,
water management, mixed cropping and pests & diseases. Majority of the growers
have been in a position to derive benefit from such studies. But diseases like (fruit
rot), Kole roga (fruit rot), yellow leaf and band diseases, pest-like root grab,
spindle lug and fluorescents cater piller continue to take heavy toll of the crop.


USES OF ARECANUT
Arecanut and its by products can be used for the following uses.
1. Use of arecanut in preparing medicines.
2. Extraction of alcohol from arecanut.
3. Use of chagoru fo manufacturing paints.
4. Extraction of fat from arecanut
5. Use of arecanut in the manufacturing of chewing gum and tooth paste.
6. Medicines for veterinary field.
7. Use of chogaru for tanning leather.
8. Use of arecanut as poultry litter.
9. Masticatory and socio religious uses.
10. Use of arecanut husk for cooking purpose.
11. Use of arecanut husk in manufacturing hard boards and wrapping papers etc.


Role of Arecanut in India
Areca nut has inspired many poets and musicians. There is hardly any
Kavya without any reference to Areca nut. The life span of the palm is
considered to be the same as that of man and it is associated with the life and
culture of our people.
In India, the areca palm is cultivated all along the Western coast from Maharashtra
to Kerala. On the plateau of Karnataka in the Gangetic delta of West Bengal,
Assam and Meghalaya. The fruits are largely used for chewing with or without
betel leaf.
In south India, the conditions of cultivation are quite different from those prevalent
in eastern India. Unlike the Eastern Zone, areca gardens of the south have to be
constantly looked after and a lot of labour and money is spent on them throughout
their life time. Areca nut is often the principal and several instances the only cash
crop of the locality in which it is produced.
It finds a place of honour at all occasions, births, weddings, rejoicings and
deaths. It is an essential item of custom and is symbolic of Indian life.


CHAPTER-3
CULTIVATION MANAGEMENT
Introduction
Plantation and Production of Arecanut
Manures and Fertilizers
Plant Protection


INTRODUCTION:-
Arecanut is not native of a India. But it is an introduced plant though
it is grown in the tropical zone extending from West Indies to the east coast
of Africa. Philipines is generally supposed to be the home of arecanut
mainly the because of the presence of large number of varieties. Trade of
those times should have spread it to all other countries.
The exact date of the introduction of arecanut cultivation in India is
not known. By the geographical distribution, based on internal available
evidence, it can be assumed that it had separate areas of introduction.
Introduction in India 90% of the area and 95% of production are
concentrated in the tree states of Karnataka Kerala, and Assam.
Arecanut in Karnataka apparently had its origin from Bomby area and
it appears to be introduced after the 7
th
country A.D. No records prior to that
period are available. That its cultivation had extended from Bombay area
through Badami to the Kuntala Region including Sagar, Sorabha and
Shikaripura areas of Shivamogga district by the 11
th
century is definite.
During the beginning of 12 th century, its cultivation was fairly extensive,
extendingfror, Harihara Davanagere to Sagr, Sorabha & Shikaripura areas.
The Hoysalas during the 12
th
century were mainly responsible for its


expansion to all over maidon parts. Afterwards, systematic cultivation
spread all over the state.
Areca nut or betel nut is an extensively cultivated tropical palm, the
nuts of which from a popular masticatory in India, the Middle East and the
Far East. India produces annually 2, 48,300 tonnes of areca nut from on area
of 2, 22,300 hectares. It is a tall stemmed erect palm, reaching varied
heights, depending upon environmental conditions. Palms attaining a height
of 30 meters are not uncommon.
It is grown as a rained crop in narrow valleys and to some extent in
plains at the head of valleys with irrigation. It is grown both as a monocarp
and also planted as mixed \ inter crop with cocoa, cardamom, pepper, betel
vine, banana, ginger and turmeric. A kernel is mainly used for chewing in
tender, ripe or in processed form. The extracts obtained after processing
contain tang in and alkaloids, which could be used for tanning leather & for
medicinal purposes.
PLANTATION AND PRODUCTION OD ARECANUT
SOIL
Arecanut is grown on a variety of soil, with adequate depth and good
drainage such as late rite, red loamy, alluvial soils.. Adaptability to these


diverse conditions does not mean that any kind of soil is suitable for its
successful cultivation. The primary need of the soil of what ever kind it may
be, that it should be capable of thorough drainage and we are able to retain
optimum moisture that is required by the crop. The largest area under areca
nut is found in gravelly late rite soils of valleys of hill slopes I n regions of
high rainfall.
Dampness of the soil and shade are conditions precedent to good
growth of the palm, while severe drought and strong winds have adverse
effect on its growth and yield.
CLIMATE:-
It is delicate humid tropical crop performing well under distributed
rainfall ranging from 1000 to 3000 m.m It is grown at an altitude ranging
from 700 to 900m of MSL and temperature ranging from 15 C to 30 C.
Rainfall and heat have a great influence on arecanut cultivation. It will be
seen that the major arecanut growing belts in Indian union are located only
in regions of high rainfall. The altitude at which arecanut palm can grow
successfully, varies according to the altitude of the place to some extent.
Though the palm grows at altitude up to 3,000 feel above see level, at higher


levels it is not productive. June and August are best months for planting. In
valleys planting can also be taken up during September to October.
VERITIES OF ARECANUT
There are different varieties of arecanut seeds for cultivation. Which are
known by the name of the palce Thirthahalli Mangala South canara of
Karnataka and Srivardhan of costal Maharastra are well known varieties of nuts
used for cultivation.
RAISING OF NURSERY
This process includes the following stages.
a. Selection of the Mother palms:-
The mother palms should be selected from disease tree, early and
consistently better yielding gardens of the locality. The palm should be middle
aged (20-40 years), healthy and have a robust crown. Select medium sized
arecanuts from middle bunches of the selected palms. All nuts that are under sized,
small formed or from the tops of the bunches should be avoided for seed purpose
b. Primary Nursery:


Now, the selected seed nuts soon after harvest. Germination trenches or
beds should be in a shaded place. Big trenches of 30cm depth and convenient
length and breadth and fill the same with sand. Now the seeds, with their stock end
upwards in the sand bed, giving a spacing of 2.5c.m x2.5 c.m and cover with sand
just to cover the seeds. Irrigate the beds daily. Nuts begin to germinate in 30-40
days after sowing.
C .Secondary Nursery:
Six months old seedlings from primary nursery should be planted in the
secondary nursery beds or in polythene bags (25x15 c.m size and 150 guage). After
filling the bags with potting mixture containing seven parts of loan or top soil,
three parts of Firm and two parts of sand. Form the secondary beds at 15c.m
height,120c.m width and convenient length with irrigation channels in between the
beds in North South direction. Apply fertilizers to the seedlings at sufficient rate.
PREPARATION OF LAND AND PLANTING
Clear the shrub growth and plant the perennial shade trees like jack,
casuarinas, panama on the western and southern borders. Palms are susceptible to
sun scorch and to minimize this, proper alignment is necessary. In the square of
planting a spacing 2.7 x 2.7 m is provided and while laying out, North-South line


should be deflected 350 towards west. In this only the outermost palms are
required to be protected from sun. About 12 to 18 months old seedling are planed
at the centre of pits of 90 cu.c.m size, filled to a depth of 50c.m with top soil, fym
and sand. As far as possible follow the contour lines to conserve soil and moisture.
Banana may be planted to provide shade and fetch additional income.
MEASURES AND FERTILIZERS
Farm yard manure or compost has to be applied at 20kg per palm every year
during on set of monsoon. The recommended quantity of fertilizer doses according
to age of the palm are to be applied in two equal splits, once in May-June and
again during September- October, Fertilizers are to be applied 30-40 c.m away
from the plant in the form of ring and mixed in the soil.
Since the soils are acidic in nature, application of 1 to 1.5 tonns of lime per
hectare once in two years based on soil test results is desirable to improve the PH
of the soil.
a. Drainage:-
Drainage is an important factor which influences the growth and yield of
arecanuts. By drainage, it is meant both the surface and the sub soil drainage and
the latter is as important as the former. Open and clean the drainage channels


before the onset of monsoon at every alternate row. Drains should be of at least 15-
30 c.m depth to drain out excess water.
b. Weeding and irrigation:-
Periodical weeding and digging during October- November are to be
attended. Weeding should be done periodically to keep the garden clean. Arecanut
is grown both under irrigated and dry conditions. Though water is the controlling
factor in the production of nuts, where sub- soil moisture is plenty and the moisture
retaining capacity of soil is high and the rainfall is well distributed, no artificial
irrigation is necessary. The frequency of irrigation is determined by the nature of
the soil, the availability of water and the financial resources of the farmers. Many
of the gardens are situated along river banks and owing to the cool moist weather
conditions, no irrigation is found necessary. Irrigate the palms during summer
months at weekly intervals depending upon soil types and weather conditions.
c. Cover \ inter cropping:
Cover cropping with Mimosa in visa stylosanthus gracillis, calapoginium
muconoidis has been found to be useful in areca gardens. The optimum time for
sowing of seeds is in the month of April and May.


Rising of inter crops and mixed crops in areca gardens is well established.
Crops like banana, cocoa, pepper, betevine, pineapple ginger and turmeric can be
grown to fetch additional income depending upon the local demand and market.
HARVESTING AND YIELD
The stage of harvesting depends on the kind and quality of material required
for the local market and climatic conditions. The period of harvest spreads over
nearly 5 months and the season varies according to the tender nut or nature of nut
harvest,. Harvest of tender nuts starts from August and continues up to December
and of ripe nuts from October to May in almost all places in the country. The
harvesting season also depends to some extent the stage of maturity required,
rainfall, availability of labour and the purpose to which the nuts are put. Harvesting
of arecanut is a specialized job and is carried out by coolies who are specially
trained in it. The Jully ripened nuts are harvested and dried for chali marketing.
Only to some extent tender nuts are harvested and cured by cutting the kernel,
boiling and drying them. The normal yield of chali would be about 800 kg per acre,
tender cured kernel would be 500kg per acre.
The processing or preparation of the nut depends on the demand from its
consuming centers. In South Canara, only fully ripe nuts are harvested. In North


Canara boiling and drying of the white husked nut without cutting is in vogue. In
Malnad, whole or cut boiled nuts have ready market. The following varieties of
processing for marketing can be classified.
a. Whole Semi nature nuts
b. Tender immature nuts
c. Chali
d. Mature undried nuts
e. Tender immature nuts sliced, coloured and dried
PLANT PRODUCE AND PRODUCTD
Arecanut is consumed both as a raw ripe nut, as dried ripe nut ( chali supari)
and as semi mature, cut and processed verities. Bata dike or Kalpak. There are
over 150 trade types, differing in maturity. Processing conditions and varying in
their taste characteristics as per market conditions prevailing at different centres of
the country. The drying of the whole fruits for making chali supari requires up to
40 to 45 days of good sunshine so as to get a moisture level of about 10%.Drying
ripe nuts on cement floors reduces fungal infection of the nuts to a minimum level
of about 5%. A drier designed recently has been found to be most suitable to
produce good quality Chali supari.


The cup shaped nuts Batladika is prepared by boiling tender arecanuts after
husking and cutting into halves. Frequent additions of the decoction, commonly
known as Chogaru, obtained by the pressure boiling of tender nuts are added to
the nuts. Later the nuts are dried over mats in the sun for about 7 days.
The important by product of the arecanut industry is the husk of nuts can be
utilized for making boards, paper etc.Chogaru a by product obtained from the
processing of tender nut is each in tannins which can be used for converting hides
into leather for treating the fishing nets and for preparing ink. The spathe covering
of the influence and the leaf sheath can be used for making caps and for packing.
The palm trunk is a useful building material.
PLANT PRODUCTION:
Insects: mile, spindle, bug, Inflorescence, caterpillar Root gruls, slugs and
bats.
a. Schedule for pest management:
1. Root grub management: During the onset of monsoon and post
mansion, watch the beetle emergence every day at 6.00 to 6.30 pm.
collect and destroy the beetle mechanically. Betel emergence may
prolong for a month which depends upon the rainfall.


2. For control of nuts, spray 25ml Dicofol or 20 ml Dimethoate in 10 liters
of water during March- April, Repeat the spray after 15-20 days if
necessary.
3. To control spindle bug and inflorescence cater pillars spray with 20 ml
Endosulfan or 12.5 Monocrotophos in 10 litres of water during
inflorescence stage.
4. For control of slugs and snails, collecting mechanically and destroying.
Maintaining optimum moisture level at the base of the palm, mulching
and pasting with lime 1m above from the bottom of the palm are quite
effective.
b. Schedule for Disease Management
Diseases: Koleroga (fruit rot) Bud rot, Inflorescence die back, leaf blight and
anaberoga.
1. Periodical collection of fallen nuts and infected debris due to Koleroga
and should be destroyed by burning.
2. Cover the bunches with Katte or Polythene sheets for prevention of
further contamination from air borne spores.
3. Prophylactic drenching with 1% Bordeaux mixture once before monsoon
and again during monsoon will prevent bud rot.


4. Inflorescence die back can be controlled by spraying with Zineb at the
time of opening of female flowers.
5. For control of leaf spots and leaf blight, spray Mancozeb ass prophylactic
measure just before the commencement of monsoon and in the middle of
monsoon.
6. Anabe roga, being a soil borne disease, its detection in the early stage is
difficult . Hence to manage anaberoga, adopt phytosanitary measures like
removal of dead trunk along with the root system and burning all the
roots. Affected trees have to be isolated by digging deep trenches all
round at a radius of one metre from the base of the affected palm. Apply
2-3kg of neem cake and green manure around the base of the palm.
c. Physiological Disorders:
Physiological Disorders:
Hidimudiga roga, stemplitting, nut splitting and yellow leaf syndromes.
1 Casual agent for hidimunige roga is not known. Hence the affected palm should
be removed as soon as the symptoms are noticed
2. Stem splitting and drying is due to western sun scorching. For prevention of the
scorching, cover western past of the areca palms with dried areca leaves during
summer months.


3. Nut splitting is due to various reasons viz. genetical physiological deficiency of
nutrients moisture stress etc. Control measures are to be taken depending upon the
situation and cause.
4. Yellow leaf syndroms is prevalent in all areca growing taluks of the hill region.
d. Management of yellowing syndrome
The causes of the syndrome are yet to be investigated. Ri manage the syndrome,
however, a set of agronomic practices have been suggested.
1. Provide good drainage especially during monsoon period.
2. Provide irrigation in summers, wherever possible and adopt moisture
conservation measures.
3. Apply adequate quantity of decomposed organic manure.
4. Cover the ground area with leaf mulch to conserve soil moisture.
5. Loosen the top soil by deep digging
6.
Apply 100gm 40g P
+
=
o
3
and g. pK2 O in two equal splits, once during.
September- October and the balance during May and apply 85 g of lime and
8.5 of Zine supphate once in a year after the onset of Monsoon.

7. Apply Gypsum 500g hectare once in 2 years prior to fertilizer application to
improve physical condition of the soil.


CHAPTER-4
MARKETING
INTRODUCTION
AGRICULTURAL MARKETING IN INDIA
REGULATED MARKET
CO-OPERATIVE MARKETING


INTRODUCTION
In the age of self sufficiency when man used to produce only for his own
needs, there was hardly any place for the distribution or marketing of goods. But
since then much water has flowed down the rivers. The division of labour,
developed means of transportation & communications, concentrated growth of
population at different places known as village, towns, cities expansion of mans
knowledge, better standard of living, mechanical devices of production on large
scale, introduction of money and banking institution have changed the times
altogether. Now the farmers the firms and the mines not only fulfill the needs of
local population but they cater to the needs of a large number of people scattred
over a wide area demanding those goods at different times and in different
quantities. This has given tremendous significance to the activities of distribution
of goods.
In the words of Edward and David.
In such a society where practically all that was produced was consumed
locally there was little place for marketing. Marketing begins when the members of
such a society realize the opportunity for a higher standard of living though
recognition of differences in skill in the members of the group, difference in the


physical factors of the soil & climate and in different regions affecting production.
The Geographical specialization in production provided the basis of marketing. A
separate class of merchants divorced from agriculture developed and towns and
cities arose to become centers of trade.
The ultimate aim of distribution activities, which may be called marketing
activities, is to transfer the goods from the point of production to the point of
ultimate consumption. The points of consumption may not necessarily be found at
the same place where the goods are produced. The marketing activities are also
concerned with the transfer of goods from one time to another. There are many
goods which are produced seasonally but consumed throughout the year but are
consumed in a great quantity only in a particular season. There are also goods
which may be produced & consumed throughout the year but may be consumed or
demanded in a particular season in relatively great quantity. To equalize the supply
to the needs of various times it is essential that goods should be stored or
preserved at the time when they are in abundance and the stored surplus be put up
in the market when they are scare. The utility of such goods will naturally be more
in times of scarcity and less in times of abundance of supply. To take advantage of
it, wholesalers or other jobbers may take up the work of storing the goods from the
time they have less value to the time they acquire greater value. Many wholesalers


have constructed their own go downs in the central mandis, at terminal or big
districting centers. Government has also established many warehouses at important
centers.
The transfer of produce is accomplished by the performance of various
marketing functions known as assembling, storing, sorting, transporting, packing,
risk bearing etc. These functions of marketing have assumed much importance
today because of more concentrated production at places where special regional
advantages can be reaped. But this presupposes the availability of such means
through which the surplus can be transferred to other places of need at economical
cost. The purpose of marketing activities is to remorse the gap between scarce
areas and surplus areas by maintain the flow of goods from the latter to the former.
Some of the agents of marketing take the special job of processing or
changing the form of the goods purchased from the produces so that they should
finally be put into the hands of final consumers in the shape in which they are
demanded. They do it only because this increases the utility and value of the
goods. Marketing is helped by the process of concentration, dispersion and
equalization. As such marketing is the economic process by means of which
goods and services are exchanged and their values determined in terms of money
prices. The term process implies activity coordinated groups of activities in fact


having a definite purpose, the purpose being to move goods from point of
production to points of ultimate use, not simply in physical sense but in such a way
so as to facilitate the maximum satisfaction of consumers wants.
Types of Market
These are no exclusive markets for the sale of areca nut in the country, as in
the case of other agricultural crops, arecanut also forms one of the commodities
handled in a particular market. There are primary, secondary & terminal markets
dealing in agricultural commodities including areca nut.
The primary markets at the village level is generally held once in a week on
a fixed day. They are usually located in the interior parts and serve the needs of
villagers. The secondary markets are regular wholesale markets held daily. @ fixed
places & are usually situated in district as taluk head quarters & important trading
centers. Both assembling & distribution takes place in these markets the 3
rd
type is
called terminal markets. These markets are those in which the produce is
assembled for further distribution for entire state traders & for exports, these type
of market are common in the trade of processed arecanut, but does not exist ripe
arecanut.


Marketing:
In commodities like areca nut where production is concentrated in four states
& consumption spread all once the country the efficiency of marketing system
assumes great importance operations involved in the movement of arecanut from
the producers to the consumers could be grouped under the main phases. In the
first phase called assembling producers themselves or the intermediate
merchants being the produce to the assembly & in the next phase described as
Distribution subsequent movement of the produce from the assembling enters to
the consumer taken place. Since there are many intermediaries in the marketing
system producer normally get only a reduced share of consumers price depending
on the distance b\w the assembling and distribution centre various market charges
and margins & season dispose.
Marketing functions:
Marketing process includes marketing functions. Is defined as as act or
operation as service through which the product & final consumers are linked
together. D\ f writer have classified marketing functions in d\f ways & there is no
unanimity among them regards classifications.


Marketing functions

Functions of Functions of Facilitating
Exchange Physical supply functions

buying selling Transportation Storage
&assembling ware housing

Packaging Financing Risk bearing Marketing Standardization
Information & Grading

AGRICULTURAL MARKETING IN INDIA
In the past, agriculture was carried on by the formers India on a subsistence
level, i.e for their consumption. As such the question of agricultural marketing did
not receive much importance. But after the adoption of the new agricultural
strategy, agriculture is being carried on a commercial basis, i.e, mostly for sale in


the market, Again, a large number of cash or commercial crops are grown only for
sale in the market. Consequently, there is the need for an efficient agricultural
marketing system so as to enable the formers to have wide markets for their
produce.
The need for and the importance of efficient agricultural marketing arises
from the following factors.
1. The ultimate objective of agricultural production cannot be achieved
unless the agricultural products are sold efficiently to the advantages of
the farmers, an efficient agricultural marketing is necessary.
2. Efficient agricultural marketing not only ensures the sale if agricultural
produce to the advantage of the farmers, but also assure adequate and
timely supplies of foodstuffs to the consumers and agricultural raw
materials to the manufacturers.
Problems of agricultural marketing in India:-
It is true an efficient agricultural marketing system is essential for India, but, till
recently, agricultural marketing in India had been defective. It has been suffering a
number of problems. The main problem of agricultural marketing in India is
follows.


1. Lack of organization of the formers.
2. Poor paying power of farmers.
3. Long chain of middlemen
4. Multiplicity of market charges.
5. Mal practices in the market.
6. Multiplicity of weights and measures.
7. Absence of grading
8. Adulteration of agricultural produce
9. Inadequacy of storage facility
10. Absence of adequate transport facility
11. Lack of market information
12. Inadequate provision of credit.
Measures taken for Improving Agricultural Marketing in India:-
An efficient agricultural marketing system is essential for the successful
development of agriculture. But the agricultural marketing system in India is
defective in several respects. So remedial measures have to be adopted for
improving the agricultural marketing in the country had been made by several
committees, and in accordance with this recommendation, a number of measures
have been under taken by the Central and State Governments for improving


agricultural marketing in the country. The various measures of agricultural
marketing in India are.
1. Establishment of regulated markets.
2. Development of co- operative marketing
3. Standardisation of weights and measures.
4. Grading of agricultural produce.
5. Development of warehousing facilities for agricultural produce.
6. Extention of transport facilities to rural areas.
7. Provision of adequate liberal finance for raising and marketing of agricultural
produce.
8. Provision of market information.
REGULATED MARKETS:
A regulated market is a wholesale or central market where dealings in
agricultural produces are regulated or controlled by the State Government through
a market committee, consisting of the representatives of the farmers, traders and
commission agents, local bodies, co-operative societies and the state government.


It is a market where the buying and selling of agricultural produce takes place
under set rules and regulations, such as incorrect weighment, excessive market
charges, unnecessary deductions etc, are curbed, and consequently farmers are able
to dispose of their produce at fair prices.
Objectives of Regulated Markets:-
The main objectives of regulated market are:
1. To create conditions of fair competition and to ensure a fair deal to the
formers while marketing their produce.
2. To eliminate unfair market practices.
3. To reduce market charges.
Regulated markets have several distinctive features. The main features of the
regulated markets are:
1. Market for a specific commodity or a group of commodities.
2. Government notification
3. Market committee.
4. Area of operation
5. Trade practices
6. Licensing of functionaries.


7. Settlement of complaints and disputes.
8. Reduction in village sales
9. Fair prices for products
10. Correct weighment
11. Uniform unit of quotation
12. Reduction in market charges
13. Warehousing facilities
14. Market information
15. Prompt payment
16. Elimination of middlemen
Defects of Regulated Markets:-
Regulated markets are no doubt, of immense help to the grower, seller,
buyers, and even to the final consumers. However, they are subject to certain
limitations and defects. The draw backs of regulated markets are:
1. Considering the vastness of the country, the number of regulated markets
present in the country is still far from adequate.


2. Spacious market yards are a must for the development and progress of
regulated markets. But, on account of the paucity of funds, most of the
regulated markets in the country do not have spacious market yards.
3. It is true that regulated markets have ensured correct weights and measures
and they have introduced metric system of weights. But the weighment is
generally restricted to about 800 lots per das day.
4. Most of the grower setters have a grievance over the in ordinate delay in
the payment of the price for their produce. They are not able to get the
payment for their produce immediately after sale.
5. In most of the regulated mancets, the market committees are dominated by
traders, and not by the grower sellers. This works against the interest of the
farmers.
6. In some of the regulated markets, the market committees are faction- ridden.
They do not very often, function properly. This works to the detriment of the
grower-sellers.
7. The organization and supervision of the regulated markets lie in the hands of
different departments in different states. This leads to a certain amount of
confusion.


8. There is discrepancy in the notification of commodities to be included in the
regulated markets. This discrepancy helps several manipulators to escape
from the clutches of the regulated markets.
9. It is said that speculative transactions in the form of forward contracts are
under taken in some regulated markets. The deal is settled between the
parties out side the market and only fictitious sales and mock auctions are
undertaken inside the markets. This defects the very purpose of regulated
marketing.
Measures for the Improvement of Regulated Market:
It is true that regulated markets in the country suffer from a number of
limitations. But certainly they have helped to remove the malpractices in the
markets and have ensured fair deal to the farmers. So, regulated markets are a must
for the successful agricultural marketing in country.
For the promotion and development of regulated markets, the following
measures or steps have to be taken:
1. As the number of regulated markets in the country is not adequate, steps
should be taken to increase the number of regulated markets.


2. As there is substantial increase in the arrivals in the regulated markets, the
markets yards in the regulated markets should be expanded considerably to
cope with the increase in the arrivals.
3. There should be more representation of the grower- sellers in the market
committees.
4. Through proper supervision and control, the market committees must be
made to discharge their duties properly to the advantages of the farmers.
5. For effective supervision and co- ordination of the activities of the regulated
market committees, a state agricultural marketing board should be set up in
every state.
6. There should be close co- ordination between the Government and the
regulated markets so as to strength the administrative system of the regulated
markets.
7. To break the monopoly of the traders in the regulated markets, there should
be a co- operative marketing society in every regulated market.
8. The resources of the market committees should be augmented.
9. All types of transactions in respect of regulated commodities should be
brought under control.
10. Arrangements must be made for speedy weighment of produce.


11. Steps should be taken for prompt payment to grower- sellers

CO-OPERATIVE MARKETING:
One of the major reforms or measures suggested for the improvement of
agricultural marketing in India is the establishment of regulated markets. Regulated
markets, no doubt, have been useful in removing several defects of agricultural
marketing. But they alone cannot solve all the problems faced by the farmers.
There are certain problems which are outside the purview and reach of the
regulated markets. Such problems have to be solved through the development of
co- operative marketing.
Agricultural products have certain special characteristics. First, they are
produced on a small-scale. Secondly, their production is scattered. Thirdly, their
production is specialized. Fourthly, their production is seasonal. Fifthly,
agricultural products very in quality. Sixthly, they are perishable. Lastly, there is
relative inelasticity of demand for agricultural goods. All these characteristics of
agricultural products make the marketing of agricultural goods difficult for
individual formers.


So, the farmers have felt the need for joining hands and forming agricultural
co- operative marketing societies for the efficient marketing of their produces.
Agricultural marketing in India is subject to several defects. Such as the
existence of too many middlemen taking away the lions share of the price of the
agricultural produce paid by the final consumers, malpractices practiced by the
middlemen, excessive market charges, and absence of standardization and grading,
lack of transport & storage facilities, absence of market information, etc. Again,
the staying or holding power of an average Indian former is weak. He is forced to
sell his produce immediately after the harvest to get the funds needed by him. All
these problems have resulted in high cost of marketing and reduced the share of the
formers in the price paid for the agricultural produce by the ultimate consumers.
This has necessitated the development of agricultural co- operative marketing
societies.
Agricultural Co- operative marketing societies can be a part of the integrated
rural credit system. They are and essential prerequisite for the efficient running of
agricultural Co- operative credit societies.
An agricultural C- operative marketing society is a Co- operative association
formed by the farmers for the purpose of performing one or more function. Such as


processing standardization and grading, storage, assembling, packaging and selling
connected with the marketing of agricultural produce and improving their
bargaining capacity and obtaining better rewards for their efforts. In short, it is a
Co- operative association of farmers formed for the purpose of effective and
efficient marketing of their produce.


CHAPTEER-5
MARKETING OF ARECANUT
Introduction
Assembling of product
Standardization and Grading
Main Trade Types
Pricing of Arecanut
Marketing of Arecanut in Shivamogga
Suggestions for improvement


MARKETING OF ARECANUT
Introduction
Marketing of agriculture produce is in crux of rural economy in our country.
It has of late, assumed added importance as the cultivators have to raise
commercial crop for sale in distant markets and the village self- sufficiency of the
gone days has now almost disappeared. There will be no incentives for the
cultivators to increase their production unless they are assured of an economic
price for their produce.
The cultivators who are generally isolated have no contact with the distant
distributing and consuming centers. Their holdings being small, the output is little
and consequently they do not earn much interest in the sale of produce.
Marketing of areca nut is more expensive because of the size of the
productive unit, the dispersion of producers, the great disparity in quality and
quantity of products etc. A serious draw back in the existing marketing system is
the inadequate arrangements with regard to marketing facilities such as collection,
storage and transport of the produce and lack of knowledge of the price structure at
every stage.


As arecanut is produced by a large number of small growers whose financial
resources are meager, they are often faced with the situation where the growers
have no option but to part with their produce at throw away prices. The cultivators
generally have no contact with the distant distributing and consuming centres and
as a result, a substantial portion of price paid by the consumer goes to the middle
man.
Markets
A market is a centre about which the focus leading to exchange or title to a
particular product operate and towards which the actual goods tend to travel.
Market can be devided in to two types on the basis of operation.
Primary market is generally a producers market. Sagar is a primary market,
for areca producers often sell their surplus products in such market through their
known market middlemen called commission agents, Mandis, Mamcos, Apscocs
etc.
The produce they assemble passes to the secondary market. Secondary
market is the wholesale markets and mostly located in areas of consumption. The
produce is handled in large quantities and specilised operators such as wayman
brokers and commission agents become necessary for the performance of


difference services. They are having ample facilities for financing, storage, and
transportation. Secondary markets are in fact the best forms of organized market
for the settlement of agricultural products in India. Terminal market is produce
exchange with trade association conducting exporting and internal distribution of
commodities.
Marketing is the performance of all business activities in flow of goods and
services from the point of initial agricultural production until they are in the hands
of ultimate consumer. A farmer should dispose his produce so as to get he
maximum return of price, at the same time we should look into the interest of the
buyer who should get full satisfaction from the price he pays for areca.
CHAIN OF INTERMEDIARIES:-
The produce has to pass through the local use and commission agents at the
assembling centers. The exporter and the importer at the top and the wholesalers
and retailers at the distributing and consuming centers. A substantial portion of the
price paid by the consumer represents the cost of handling and the margin of profit
earned by the several intermediaries.
The middle man services are therefore essential to link the producer with the
consumers. Some one has to undertake the curing, collecting, grading, transporting,


selling, delivering to the ultimate consumer. But considerable economy can be
affected through a combination of producers and co- ordination of numerous units
of production and marketing.
The commission agents purchase the arecanut through agencies and growers,
brokers, they charge commission at some percentage. Brokers operate to bring
buyer and seller together. Primarily, brokers sell information of product available
for sale or purchase. In recent amendment, all commission agents are traders who
are not bidding in auction unit but they appoint agents for bidding in the auction
sales.
Assembling or buying of product:
Assembling refer to those business activities which are concerned with
concentrating goods under a single management or control. The object of
assembling is to make available the goods wanted by producer or consumer at their
hand. The assembling implies ownership not merely the physical transfer of goods.
In modern times of varied production and varied demands, assembling as a
function of marketing has assumed great importance. In the case of arecanut which
are produced in scattered small fields in certain season, assembling is all the more
important. Assembling should not be confused with transportation or storage.


These functions of physical supply along with other functions are preformed as
assembling and there functions are one and the same. Assembling this implies
bringing the goods at convenient points in the volume, quality and quantity
required. It results from buying efforts.
The dealer who knows where he can purchase at all times a sufficient
quantity of the products he has, for he can purchase at all times a sufficient
quantity of the product he has for sale performing the function of assembly just as
is the merchant who transport a supply of merchandise and holds it in his
warehouse until called for by his customers. The wholesalers of a big Mandi in
their turn assembly the produce and break up these lots into smaller ones for the
retail traders and the retailers sell them to individual consumers.
Standardization and Grading:-
A efficient of marketing is of utmost importance to a country under all
conditions and at each stage of its development. In the present system of
commercial production of agricultural crops, there is no room for complacency
about the bewildering confusing prevailing in the field of marketing. The
marketing system in our country is still antiquated and out of date. The situation is
more embarrassing and complicated for the honest dealer or producer, who on the


one hand is required to allay the suspicion of the buyer and on the other hand, to
face the challenge of unscrupulous rivals out for cut throat competition. It is here
that the grading of products on the basis of well defined standards in regard to
general appearance, size, colour and intrinsic quality, helps both the producer and
the consumer. Standardization and grading thus provide a common language for
the buyer or the seller.
The agricultural commodities, as they are raised under varying
environmental conditions and cultural practices show considerable variation in
quality. Unless the quality differences are reflected in the prices, the incentive for
the production of quality produce suffers to the detriment of industrial needs and
consumer preferences. If the consumers are not assured of their requirement in a
pure form and at a cost with in their capacity to pay, there is bound to be general
discontentment in public. It is therefor3e necessary to gear up the various
marketing services among which standardization and grading play a vital role.
Standardization is the legislation of the grades or is supported by legal s
sanction and this gives permanence to grade over a long period of time.
Standardization indicates the establishment of a certain standard, based upon
intrinsic physical properties or qualities of commodity with a view to further
subdividing it into several grades or classes. When we call a commodity a standard


good, we certainly mean that it is of a certain quality. This quality dependent upon
chemical contents, flavor, size, colour, appearance, length of fiber, and amount of
moisture etc, Standardization thus implies a prototype, a model, a pattern or
example. Standards generally serve as the basis for further use and to be effective
they must be relatively permanent and must be used by a considerable proportion
of sellers & buyers.
Grading of Product.
Grading starts where standardisation ends. Established standards are
commonly called grades. When standardized goods are further sub divided into
well defined classes they are known to have been graded. Grading is simply a
means of dividing products of varying quality, size etc. Into lots conforming to
certain standards. Grading is the process of dividing a quantity of the same kind of
goods into uniform groups according to certain standard of size, shape, colour,
degree of cleanliness, acidity or other significant characteristics. Various chemical
& mechanical devices may be used in assorting products or determining the grade
of products.
In India the arecanut products are raised under different environment
condition and varying agronomical practices. These products show considerable


variation in regard to quality. For healthy trade practices, the quality differences
should be appropriately reflected in prices. Unless the grower can secure a price
commensurate with the quality of his produce, he will not have any incentive to go
in for production of better quality.
In the absence of well defined quality standards and a regular system of
quality marketing products, grading in asrecanut commodities even in the
secondary and terminal markets had to be based on inspection of products. This
ultimately adds to the marketing cost and subjects the producers to systematic
exploitation in the trade. The need for introducing well defined grade standards
was therefore felt firstly in the field of agricultural commodities in order to ensure
the producer a return commensurate with the quality of his produce and buyer his
moneys worth.
AGMARK GRADE STANDARDS FOR ARECANUT
Arecanut is one of the commodities included in the schedule of Agricultural
Produce grading and Marketing Act 1937. The Agricultural produce Grading and
Marketing Act is permissive and the grading under the same to be known a
AGMARK grading. The Act authorizes the agricultural Marketing Adviser.
Government of India, to issue certificates of authorization to persons or corporate


bodies who are prepared to grade & pack the produce on the prescribed lines. The
certificated are issued on individual larger packers. The inspecting staff of the
Central Agricultural Marketing Department inspects the grading station in charge
of the authorized packers and collect samples of the graded produce from the
market.
Although AGMARK grade standards have already been prescribed under the
provisions of the Act for sun dried whole arecanuts (chali supari), grading under
AGMARK is yet to gain momentum and become Popular among both growers and
traders. The traders and all societies dealing in this commodity have not yet
adopted the same for the purpose of internal trade inspire of the many advantages
that accrue from purpose of internal trade inspire of the many advantages that
accrue from grading,. While the grade specifications for the sun dried whole
arecanut finalized under this scheme have already been accepted, prescribing
AGMARK specifications for boiled arecanuts are under consideration of the
Agricultural Marketing Adviser.
Grading at Producers level:
For helping the farmers to sell their produce at price commensurate with the
quality of the produce sold by them in the mandis, grading at the producers level


has been introduced. Under this AGMARK scheme, grading services have been
provided at regulated markets, co-operative societies and in certain warehouses as
well. Grading at farmers level helps to create mutual confidence between the buyer
and the seller. It provides as commo0n language for them since almost all mandis
dealing in arecanuts are functioning as commission agents and the produce of the
individual arecanunt growers is sold in separate lots, are most appropriate agencies
to undertake grading and pooling of the produce and vigorous propaganda is
needed to make it.
Varieties of areca nuts and centers of production and consumption:

Trade types Main centers of
production
Main centers of
consumption
`1. RIPE ARECANUT Kerala, Karnataka
Assam and West
Bengal
Kerala and Assam
RIPE DRIED
ARECANUT
Kerala, Karnataka,
Assam, and West
Bengal, Tamil Nadu
and Maharashtra
Gujarat, Andhra
Pradesh, Madhya
Pradesh, Uttar Pradesh,
Rajasthan, Delhi,
Assam and West
Bengal.
PROSED GREEN
NUTS
Kerala Karnataka and
Maharashtra.
Tamil Nadu, Andhra
Pradesh and Karnataka.


Pricing of Arecanut :
Price is the value of product expressed in terms of money. It is the
amount paid by a buyer to a seller for unit of product or service. A producer may
adopt various price policies for the product being produced by him.
The price of arecanuts varies widely from market to market and even in
the same market, there is variation in prices of arecanut markets mainly due to
variation in quality of produce. The prices are liable to vary on account of
difference in size, colour, inner characteristics etc. In addition to the above factors,
the varying units of price quotations from place to place. Like other agricultural
products the prices of areca nuts are subject to well defined seasonal changes. In
the absence of any well defined standards of quality, it is possible to get
comparable prices over a long period. Even in the same market and these may
differ even in the same market and these may differ even from merchant to
merchant.
Prices o f arecanut may be studied considering prices at three levels.
1. The form level price.
2. Whole sale market price
3. Retail market price.


The farm level price can be interpreted as the price that a farmer is
receiving for his produce at the village and mandi levels. Wholesale market price is
the price with in find on commodities that is sold in bulk a the market area. A
whole sale is supposed to supply in big lot to the retailers. Retail market price is
the price which is rolling in distribution centers for the consumers.
Reasons for price like of Arecanut
From the last 4 to 5 years areca nut market has grown rapidly. This is
because of the sudden raise in the prices of arecanut. The reason for this price hike
is increase of populacity about Gutka, which is a tasteful mixture of arecanut
pieces, tobacco powder and required chemicals. Even though gutka is harmful to
health, its craze is in creased especially in youths which are the main reason for
price hike of arecanut.
If government bans Gutka or its popularity decreases then arecanut price
may fall down. So growers today itself find other usages of areca nut increasing its
popularity, improving the productivity of other by products.


Grading by Merchants:-
Classification of nuts into several grades is invariably practiced by
merchant in all the assembling markets this is done generally when the produce is
sold by the seller to merchant.
The grading of whole or sliced boiled nuts is generally done by hand
picking by female labour who are generally skilled in the job. For separating the
small pieces, circular sieves made of cane with octagonal gates are often used.
Specification of grading is generally different from merchant to merchant even in
the small markets.
Assembling of the nuts:-
The long chain of intermediaries and ignorance of the grower is the main
cause for this state of affairs. The producers sells immature, unhusked nuts, sun
dried ripe nuts with or without shell and also boiled nuts. The further processing i.e
cutting and boiling need expert handling and it is undertaken by the curer.
Wholesale merchants and commission agents generally do not act as assembling
agents. The role of Co- operative society is insignificant in the market. These
societies act as important assembling in the respective areas of the operation.


Mode of Transport:
The arecanut which is ready for market is brought on bull- carts, Lorries
and trucks to the market for sale.
Method of sale
The unit of quotation is for one quintal, the prices of arecanut are being
settled by Tender system of sales. At Shivamogga sellers commission agent also
bid along with other buyers and as such it is not in his interest to get the highest
prices for his client.
The sales are being conducted by the respective commission agents in
Mandies in Apscos, Mamcos, in presence of the employees of this market
committee.
As soon as the sale is completed, agreement slip is prepared in triplicate
by the market committee staff on the spot and after obtaining the signature of the
commission agents and traders is taken of the sales. One copy of the sale is being
issued to commission agent and another copy to the trader and third copy is being
retained in the sale note book itself for office record.


Method of weighment:
As soon as commodity arrived to the commission agens Mandi, the first
weighment is being done by the licensed weighmen by the market committee. As
soon as weighment is completed a receipt called A. Bill is being issued to the
producer and a copy of the some will be sent to this. Market Committee. The
commission agents are permitted to store the bags of the seller in their respective
godowns. After the sale, the second weighment receipts called B Bill are issued
to the producer.
Resale of the Crops:-
In the distribution of arecanuts the same agencies as in the case of
agricultural produce such as paddy, Wheat are employed. These are commission
agents wholesale merchants and retailers.
Resale is carried through commission agents in important distributing
centres such as Bobay, Allahabad, Culcutta, Madras, Hubli, Agra, Lucknow,
Bangalore, Gulbarga etc. Terms are being settled by private negotiations.
Wholesale merchants in small market place orders with their agents in distributing
centers. The cost of distribution besides market charges for services rendered in


assembling and distributing markets, include charges for services for transport and
expenses incidental there to.
Marketing Channels:
1. In the market there are commission agents who store the arecanut of the
producers. These agents sell the nuts of the cultivator whenever they want to
sell. The arecanut is sold by closed tender system.
2. There are some more merchants, they will be acting as intermediaries such as
village merchants, local merchant in the town etc. There are some merchants in
the c consuming centres. They are some brokers who work on behalf of the big
merchants.
3. There are some Co- operative sectors also who deal in areca, but mostly they
are just like commission agents in selling the goods.
Suggestions for Improvement
Improving the statistics of acreage and production
Although due to mixed cultivation it may be difficult to have exact
statistics of area, arrangement need be made for recording the arecanut acreage
with greater accuracy, than it present and for estimating the production annually. A
periodical check of areca nut acreage together with a system of recording yield by


selected growers in different areas should possibly be adopted to have a fairly
accurate year to year estimated of production.
Improving the Quality of Cured Areca nut:
Defective methods of boiling, colouring and drying affect badly the
quality of arecanut, lack of proper knowledge is responsible for this. It can be
improved by educating the growers in the best methods of curing, providing credit
facilities and by introducing improved ovens for drying areca nuts during the rainy
season.
Regulating Imports:-
India imports a considerable quantity of arecanuts from abroad to meet its
requirements. The prices of imported nuts generally have a depressing effect on the
prices of arecanuts produced in the country and indirectly discourage production .
Hence imports should be regulated.


THE CENTRAL ARECA NUT MARKETING AND PROCESSING CO-
OPERATIVE LIMITED [CAMPCO]
In 1950 after the independent, Indian govt. were established
simultaneously the price of areca nut start to increase. Were established.
Research and development measures adopted in areca nut lead to
substantial increase in the production of areca nut in the country and towards the
end of 1971 there were indications of an imminent price 3 fall. This created panic
among the growers of Kerala and Karnataka in particular and the two state
governments constituted by the government of Karnataka examined the situations
in detail and attributed the reasons for the fall in price as and attributed the reasons
for the fall in price as increased production uses, market speculations, manipulation
by Intermediaries poor holding capacity by growers and in adequate marketing
and arrangements d committee recommended setting up apex institutions to
processing wherever possible.
The CAMCO succeeded in receiving d marker with in a very short time
and by January 1974 9established in July 1973) d prices were restored to previous
level. It could stabilize market and also narrow down a gap blw a price received by
a growth and paid by a consumer.


REGULATED MARKETS
Introduction
A regulated market is a wholesale or central market where dealings in
agricultural produces are regulated or controlled by the State Government through
a market committee, consisting of the representatives of the farmers, traders and
commission agents, local bodies and co-operative societies and the State
Government. It is a market where the buying and selling of agricultural produce
takes place under set of rules and regulations made in this behalf by the State
Government, and all malpractices, such as incorrect weighment, excessive market
charges, unnecessary deductions etc., are curbed and consequently farmers are able
to dispose of their produce at fair prices.
Objectives of Regulated Markets
The main objectives of regulated market are:
1. To create conditions of fair competition and to ensure a fair deal to the
farmers while marketing their produce.
2. To eliminate unfair market practices.
3. To reduce market charges.
Regulated markets have several distinctive features. The main features of the
regulated markets are:-
Market for a specific commodity or a group of commodities.
Government notification.
Market committee.
Area of operation.


Trade practices.
Licensing of functionaries.
Settlement of complaints and disputes.
Reduction in village sales.
Fair prices for products.
Correct weighment.
Uniform unit of quotation.
Reduction in market charges.
Facilities.
Market information.
Prompt payment.
Elimination of middlemen.

Measures for the improvement of Regulated Markets:
It is true that regulated markets in the country suffer from a number of
limitations. But certainly they have helped to remove the malpractices in the
markets and have ensured fair deal to the farmers. So, regulated markets are a must
for the successful agricultural marketing in the country.
For the promotion and development of regulated markets measures or steps
have to be taken:
1. As the number of regulated markets in the country is not adequate, steps should
be taken to increase the number of regulated markets.
2. As there is a substantial increase in the arrivals in the regulated markets, the
market yards in the regulated markets should be expanded considerably to cope
with the increase in the arrivals.


3. There should be more representation of the grower-sellers in the market
committees.
4. Through proper supervision and control, the market committees must be made
to discharge their duties properly to the advantage of the farmers.
5. For effective supervision and co-ordination of the activities of the regulated
market committees, a state agricultural marketing board should be set up in
every state.
6. There should be close co-ordination between the Government and the regulated
markets so as to strength the administrative system of the regulated markets.
7. To break the monopoly of the trades in the regulated markets there should be
co-operative marketing society in every regulated market.
8. The resources of the market committees should be augmented.
9. All the types of transactions in respect of regulated commodities should be
brought under control.
10. Arrangements must be made for speedy weighment of produce.
11. Steps should be taken for prompt payment to grower-sellers.


CO-OPERATIVE MARKETING OF ARECA NUT
Introduction
One of the major reforms or measures suggested for the improvement of
agricultural marketing in India is the establishment of regulated markets. Regulated
markets, no doubt, have been useful in removing several defects of agricultural
marketing. But they alone cannot solve all the problems faced by the farmers.
There are certain problems which are outside the purview and reach of regulated
markets. Such problems have to be solved through the development of co-
operative marketing.
Agricultural products have certain special characteristics.
1) They are produced on a small-scale.
2) Their production is scattered.
3) Their production is specialized.
4) Their production is seasonal.
5) Agricultural products vary in quality.
6) They are perishable.
7) There is a relative inelasticity of demand for agricultural goods.

Objectives of Co-operative Marketing Society
1. To maximize the income of its members or farmers.
2. Obtaining better prices for the produce of members sold through it.
3. Lowering the cost of marketing.
4. Development of orderly marketing.


5. Adoption of better selling methods
6. Improvement of the quality of the produce through standardization and grading.
7. Elimination of trade abuses.
8. Improved bargaining position as its members are sellers.
9. Development of marketing facilities, such as storage, processing, transport,
packing, finance etc.


Chapter 6
A profile of Kuntinamadu S. Mallaiah & Sons
Introduction
Methods of tender
Loans and borrowings
Firm development


A profile of Kuntinamadu S. Mallaiah & Sons

Introduction
The firm Kuntinamadu S. Mallaiah & Sons was established on 2004 with
proprietor . Business undertaken by the proprietor of this firm, namely K.R.
Prashanth.
Kuntinamadu S. Mallaiah & Sons is situated in the APMC yard
Shivamogga. The APMC yard is situated in Sagar Road, Shivamogga.The office
and gowdon of the concern is situated in the building no. 6-8 of the APMC yard.
The product like Areca nuts. APMC yard of Shivamogga is marketing place of
agricultural products mainly areca nut concerned in the districts like SIMOGGA,
Chikkamangalor, Davanagere, Hassan, Maysore and other areca nut growing
distridcs.
B\s Carried on:
KSM & S Concern is mainly concerned with the wholesale of A.N
trading. The product are brought into the mandi by purchasing they are those who
goes to commission mandi and gives tender is conducted on the scheduled day in a
week. The days scheduled for tender in some commission mandi are maonday,
Wednesday and Friday and in other commission mandi are in thusday, thusday and
satarday.


Methods of tender:-
On the scheduled days, the all varieties areca nut putting on bags by
giving numbers of 1 to 15 in a line and so on & concerned & other tenders are
supposed to come & fill the details in the tender ship. The details contain the
number of bag, variety of A.N & Quote their competitive & profitable rates of it
per Quintal. The traders are put their quoted tender ships in a locked box similar to
that used while voting is given by a APMC officials & the higher bidder will have
to buy the bags which is tendered far. It is the wish & will of farmers (growers) to
sale that particular bag, if they are not satisfied by a rate given to their product they
may keep it for resale in any other day by a commission agents growers are
satisfied and ready to sale a bags to a highest bidder not have only option to refuse
a variety after quoting there one slip.
Bills:-
The agricultural products will the varying in their weight if the
atmosphere contains more quantity of moisture then bags of arecanut while
bringing them to the farm the arecanut reduce its weight for many reasons like
atmosphere, differences in scale, dried areca or for cheating purposes after made
tender by the firm any difference in scale dried areca or for cheating purposes, after
made tender by the firm any difference are occurred in areca nuts will silently
suffered from the firms but more difference may comes .This was complained by
the partner to the related person. So for this reason the bills are classified into two
types
1. Purchase Bill


C Bill
1. Purchase Bill: Purchase bill is a bill which is received by the traders from
the commission agents at the time of buys the areca nut.
2. C Bill: C bill is a bill which is used to sale their graded arecanut his
customers. For examples : Purchase bill No 000172 dated 31-05-2000
Secondary C bill No 200 dated 13-5-2000.
Loans and borrowings:-
The growers of arecanut take a loan from the mandi whenever they need
money. They find it easy to take loans from the mandi rather the form a bank.
Because formalities in a mandi are rather cashier then that of banks.
The growers and the concerned are granted loans recording to the amount
of arecanut they bring or they are expected to being into the mandi and according
lot areca nut they give advance cheques for taking deliverey. Before granting loans
the signature of that is taken in promissory note and lost dater cheques for the
amount of loan granter. The loan is recovered by the state of arecanunt .The loan is
recovered by the sales of arecanut .the loan charged some reasonable amount of
interest.
In this form the partner take loans and borrowings from the SAMM co-
opp, banks Shivammogga for same reasonable interest on loans and borrowings.
The factors which affect the sales are
1. Inflow of Arecanuts: the inflow of arecanut is directly proportion to the sales
i.e if the amount of arecanut is more the sales will be more and vice versa.


2. The fluctuations in price:
In days marketer is a fluctuation in the arecanut prices. It is directly
affects the sales. The purchase price of areca nut is high & in its sellings time the
fluctuation in price which affects the sales in the concern mainly depends on
demand and supply.
3. The demand for product:
Higher the demand higher will be the price. So, when there is demand
obviously these will be more sales.
4. Harvesting reason:
It is also affects directly to the sales a supply of areca nut is more than the
demand so the price of areca nut is low.
5. Govt. Policies:
The variation of Govt. policies in a market, which affects the sales of
arecanut.
7. Inflow of Money:- The iflow of money is directly affected to a sales
because the amount is due from a customer to a firm.
Firm development:-
The firm developed their financial operation & reputation obtustly like
compose to year after year the Arecanut is speculated bls which was leading by the
partnership.


Due to a decline in price level because of the govt or other areca nut bls need to be
stopped for about some months during a year forever not much loss was sufficient
expect a interest on loans (OD) which was compulsory payable total SAMM co op
bank Shivamogga and Mandies.
The intelligent point to be noted here, that a partners never took any risk
as a co, Stop the bls during a price decline without taking any heavy burden of
maintaining unnecessary stock.
Balance Sheet
Liability 2008-2009 2009-2010
Gods a/c 2,007 2,108
K.R.Prashanth capital a/c 22,55,364 28,67,771
Loans borrowings 6,87,900 9,83247
Family deposit 3,78,288 3,78,288
Sundry crs 2,31,13,022 1,17,29,863
Outstanding liabilities 1,19,560 73,376
Total 2,65,56,141 1,60,34,653

Assets 2008-2009 2009-2010
Fixed asset 13,77,646 21,24,506
Investment 2,50,390 2,11,450
Current assets 1,16,122 1,50,414
Closing stock 16,71,375 4,50,000
Sundry drs 2,26,76,911 1,27,98,283
Cash at bank 4,63,697 3,00,000
Total 2,65,56,141 1,60,34,653


PROFIT AND LOSS A/C
Liability 2008-2009 2009-2010
To shop expenses 10,226 22,791
To Salary
To Rent
1,41,900
49,500
1,50,700
39,600

To vehicle expenses 38,487 43,681
To Tax 2,500 2,500
To Other expenses 9,47,001 4,77,293
To Depreciation 14,84,534 9,06825
To Net profit 4,97,676 4,64,870
19,82,210 13,71,695

asset
By gross profit 8,00,700 2,34,539
By commission 4,90,979 2,46,554
By Hamali 78,994 41,170
By interest 6,22,537 8,49,432
Total 19,82,210 13,71,695

86-A


CHAPTER-7
ANALYSIS OF THE SURVEY

Tables showing Analysis of the Survey
Charts


Analysis of the Survey
In this chapter, an attempt is made to analyses graphically, the growers
and their relationship with the market.
First, a table is given according to respondents data and then graph is
drawn. Finally, a brief discussion is given.
Table 1: Cultivators Annual Income
Income per Year (In Rs) No. of Persons In percentage.
Below 10,000 2 4
10,000-20,000 12 24
20,000-40,000 12 24
40,000-60,000 15 30
Above 60,000 9 18
Total 50 100

Interpretation: The survey reveals that almost all the growers have no problems
to their daily meals. Because of the current price of the areca nut. Which is as
higher as 10,000-20,000 Quintals in recent years. More of the areca nut growers
belong to middle and upper middle class family.


Graph shows cultivators Annual Income

Shortage of
labour
23%
Irrigation
Problems
26% High wages
12%
Plant Disease
24%
Lack of
Technology
15%


Table -2 Cultivators land holding
Area No. of Persons In percentage.
Below 1 Acre 12 24
1-3 Acre 13 26
3-6 Acre 12 24
6-10 CRE 8 16
Above 10 Acre 5 10
Total 50 100

Interpretation: Cultivators having land below 1 Acre belong to lower class
family, 1 to 3 Acres land holders belong to middle class family and rest of the
cultivators belong to upper middle class family.

Shortage of
labour
23%
Irrigation
Problems
26%
High wages
12%
Plant Disease
24%
Lack of
Technology
15%


Table -3 : Showing the financial Support of Cultivators

Interpretation: Most of the cultivators get financial assistance from their mandis
or Co- operative Societies.

Source of Finance No. of Persons In percentage.
Commercial Banks 11 22
Co- operative Society 10 20
Mandi (Comm. Agents) 20 20
Money Lenders 9 18
Total 50 100
Shortage of
labour
23%
Irrigation
Problems
26% High wages
12%
Plant Disease
24%
Lack of
Technology
15%


Table -4 Mode of Purchasing Table

Interpretation: In Sagar Taluk, 4-5 years back, most people were selling arecanut
Co- operative Societies. But now, due to some reasons, mandis have occupied that
position by leading the market.
Local merchant also have some importance in the market, because of their
Door Purchasing tactics.

Purchasing Authority No. of Persons In percentage.
Mandi (Comm. Agents) 28 56
Co- Operative Society 14 28
Local Merchants 8 16
Total 50 100
0
5
10
15
20
25
Shortage of labour Irrigation Problems High wages
19
21
10


Table -5 Cultivation Problems per Cultivator
Problems In percentage
Shortage of labour 19
Irrigation Problems 21
High wages 10
Plant Disease 20
Lack of Technology 12
Marketing Problems 18
Total 100

Interpretation: Marketing problem involves transportation of products,
shortage in weight age , grading of produce, rate at that day etc. Modern
Technology has not reached most of the cultivators. In most of the houses,
husking is done by people who consume lot of money and manpower.

Shortage of
labour
19%
Irrigation
Problems
21%
High wages
10%
Plant Disease
20%
Lack of
Technology
12%
Marketing
Problems
18%


Chapter-8
PROBLEMS, SUGGESTIONS AND CONCLUSIONS


PROBLEMS
There are several problems faced by both producers and purchasers of
arecanut in the fields of production, marketing amend financing. Producers
problem are easily identifiable, but purchasers problems are not so. Both problems
are discussed here.
1. The growers who generally have small holdings are unable to store their
produce and market it profitably unless some marketing organization comes to
their aid.
2. Most of the cultivators have not adopted modern technology for production.
3. The agriculturists in many cities are ignorant of the day to day market rates
obtainable to their produce.
4. The need for money for both cultivation and domestic purposes being great,
they are forced to sell their produce immediately after harvest. He some times
sells it to the intermediaries, who offer him ready cash for it at his door.
5. Most of the growers borrow money from the local money lenders, merchants or
commission agents. This binds them to sell their produce to these middlemen at
the ratews quoted by them.
6. Determination of quality has been partly responsible for obtaining lower prices.
Harvesting of immature or even mature nuts, improper processing, drying etc
also leads to deterioration in the quality of arecanut.
7. Plant disease is one of the main problems in production of arecanut. In the
season the probability of disease attacking is more.
8. Lack of alternative uses of arecanut.
9. Since the market is occupied with large number of mediaries at different levels
the producer get only 65% of money consumer has paid.


10. Government has limited control over the market and growers and purchasers are
not well organized. So price variations are not controlled which effects on the
market.
11. Since most growers live in interior villages they have limited transportation
facilities. Due to this reason timely reaching of the product to the market is
disturbed even though goods come early to the market, storage problem again
appears.
SUGGESTIONS:
1. Most of the cultivators have not adopted modern technology for production of
arecannuts. The technology can be used in husking, drying, colouring, slicing,
boiling and packaging of arecanut.
2. Irrigation and labour problems can also be reduced by using modern
technology.
3. Growers are suggested to take proper care of arecanut plantation apart from
measures to protect the main crop.
4. Proper measures to control the disease will give better yield of arecanut. They
should replace the old and diseased vines with new and improved breeds otf
vines.
5. The cultivation should give importance for the growth of mixed crops.
6. Growers should assemble their produce in one place and processing and grading
should be carried out collectively to earn better returns for their produce. They
should arrange for collective transportation of arecanut produce in their area.
This lowers transportation cost.
7. The unsatisfactory marketing arrangements have been the base of the problem.
The large number of the intermediaries functioning in the field of marketing has


brought down the producers share in the consumers rupee. This exploitation
the producer could be topped only by reducing the number of intermediaries
and creating a situation where by the grower will have a say in the matter of
regulation of prices.
8. It is necessary to under take suitable propaganda amongst the growers to make
proper processing and grading more popular so that it fetched higher prices for
their produce.
9. The availability of marketing facilities should be within easy reach of the
producers.
10. Creation of areca nut board.
11. Co- operative marketing organization like, MAMCOS, CAMPCOS, and
APSCOS have an important role to play both in providing credit facilities and
arranging for orderly marketing.
12. The government should continue to grant interest loans on the subsidiary.
13. The increased rate on tax should be decreased.
14. The government should fix a minimum price for the arecanut.
15. By increasing a licensing method, the government should prevent the growth of
arecanut.
16. The scope for expanding the export trade is limited. It should be encouraged.
17. Few alternate uses are worth perusing. Arecanut can be beneficially used in the
manufacturing of both paste and chewing gum. It would not only increase the
consumption of arecanut within the country but would also lead to export trade
in these products.


18. The growers should be aware of price fluctuation associated with Gutka and
other commercial products of arecanut, so that future problem is effectively
handled.

CONCLUSION:
Large amount of arecanut is given by small land holders. But to improve
productivity, they have problems like financial assistance, high wages and high
rate of fertilizers etc. To overcome these problems, small land holders should be
provided with long term loans and Government should provide supporting prices
for fertilizers and their products. National and rural development banks must
activate in this direction.
Steps must be taken to attract more and more consumers for the arecanut.
Popularization about the betel nut must be increased by advertisements and
researching is needed about the other uses of arecanut.
Suitable scientific methods are needed for the effective production and
storing. Research can also be made in this field. When arecanut palm is broken by
wind or destroyed by other means, it needs at least five years to get the crop. In
that case, producers financial position was down so Insurance facility must be
provided for the crop.
In the arecannut market there are much more mediators therefore growers
get only 65% of money of what consumer paid. Another problem is that of
unauthorized purchasers, who purchase the products by not paying taxes, which is
the heavy loss for the Government and they are also responsible for price
fluctuation.
It is observed that the current good value of the arecanut is due to
Gutka. The care must be taken so that arecahanut market should be independent
of such commercial items.


Annexure
Questionnaire
Bibliography


QUESTIONNAIRS
Dear sir/madam,
I am student of Dr. Ambedkar College, Shivamogga. As part of the curriculum
of BBM degree, I am conducting a survey to prepare project report on
Production and Marketing of Arecanut, a case study of Kuntinamadu
S.Mallaiah & Sons, Shivamogga. Therefore I kindly request you to spare some of
the precious time to answer the following question.
Thanking you,
Yours
Manasa G.K
1. Name and Address
2. Major Occupation
3. Land holding
Irrigated
None irrigated
Area in Areca
below 1
1 to 3
3 to 6
6 to 10
Above 10


4. Areca nut yield in quintals per acre
Below 5
5 to 10
Above 10
5. Annual income
Below 10000
20,000-40,000
40,000-60,000
above 60,000.
6. Method of cultivation used:
7. State any special features of arecanut cultivation If any adopted in your garden

8. What are the disease and pests affecting the crop?
Koleroga
But rot
Anabreroga
Nut splitting
Leaf spot
Stem splitting
Hidimundiga roga
Any other (Please specify)
9. Which type of arecanut you produce for market
Raw or Green
Sun dried
Boiled


10. Method of Disposal of nuts
Through Co-operative Societies
Through commission Agents ( Mandi)
Through regulating markets
Local Merchants
11. What is the distance from land to mandi (in kms)?
below 10
10-15
Above 15
12. What is the mode of transportation used?
Lorry or Van
Bullock cart
Others
13. What is the method of Sale adopted?
Direct
Auction
Tender
14. Do you get immediate Payment on sale? If no, what is the period?
Yes
No
15. Any problems on selling through Mondi (Comm. Agents) (If yes please
mention)
Yes
No
16. If need, from which of the following sources you take loans?


Commercial / Agricultural Banks
Co- operative societies / Regulated markets
Mondis
Others
17. Do you think present prices are economical, if not, what is the price you expect
for your produce?
Yes
No
18. Give suggestions, if any, for,
__________________________________________________

Signature
Date:
Place:


BIBLIOGRAPHY
1. Encyclopedia Britannica
2. Hand book of Agriculture
3. Improved Cultivation Practice for Horticultural Crops
University of Agricultural Sciences, Bangalore
4 Economic and Commercial geography of India
T.C SHARMA
5. Modern Marketing Management
SHERLAKAR
6. A study of Marketing in India.
SAXENA
7. Marketing Management B.S.RAMAN
8. Adika Krishi
B. NARAYANA BHAT
10. Adike Patrike
A Manual for Areca nut Growers.

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Ambedkar College, Shivamogga

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