The Hindu : Karnataka News : Govt. to study areca growers problems

Online edition of India's National Newspaper
Tuesday, Jun 29, 2004

Karnataka

Karnataka

Govt. to study areca growers problems

By Our Special Correspondent

BANGALORE, JUNE 28. The State Government has decided to set up a task force to study the problems faced by areca nut growers in the State.

K. Srinivasa Gowda, Agriculture Minister, told presspersons today after listening to the representatives of various cooperative societies and farmers' associations here that the Government would set up the task force comprising experts from the two universities of agricultural sciences, officials of the cooperative societies, Department of Horticulture, Central Areca nut and Cocoa Marketing and Processing Cooperative Ltd. (CAMPCO), Mangalore, and representatives of farmers' bodies to find a permanent solution to issues such as minimum support price (MSP), marketing, and import of areca nut from other countries.

On the growers' demand to extend the minimum support price to the white variety of areca nut, Mr. Srinivasa Gowda said the issue would be placed before the next Cabinet meeting. After discussing the issue in the Cabinet, a Cabinet subcommittee would fix the price within 15 days. The rates would be fixed depending on the prevailing market prices.

The prices of areca nut had been fluctuating in the past few years because of the ban on gutka in Maharashtra, Tamil Nadu, and Gujarat.

The prices nosedived to Rs. 52 now from Rs. 200 a kg in 1996-99. The Government had decided to take a delegation to New Delhi and hold discussions with the Union Agriculture and Commerce Ministers on restricting import of inferior quality areca nut from Thailand and Indonesia.Efforts would be made to export areca nut to Pakistan, a major importer in the South Asia, he said.

The growers demanded that the Government reduce sales tax on areca nut from 4 per cent to 2 per cent to check illegal sale and grant permission to cooperatives to buy the produce from farmers. To stabilise prices, they urged the Minister to immediately announce minimum support price for areca nut.

In the State, areca nut is grown on 78,625 hectares and production was about 3.5 lakh tonnes in 2003.

The meeting, presided over by the Minister, was attended by Sadananda Gowda, Mangalore MP; MLAs from Dakshina Kannada, Udupi, Shimoga, and Chikmagalur districts; and L.N. Kudur, CAMPCO President.

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