Chapter 1

Introduction
The areca palm growing countries are India, China, Bangladesh, Indonesia,
and -Myanmar. Among these India holds first position in cultivation. India has
been traditionally an arecanut growing country. At the time of partition of the
country in 1954, nearly 50% of total area went to Bangladesh. Because of this
there are arouse shortage of arecanut and thus India, imported from other countries.
But due to various development measures adopted by state and central government
production in all producing state increased. Among the three leading states
producing arecanut via Kerala, Assam, Karnataka. Thus, Karnataka stands first
from the point of view of total production in India.
Arecanut is an important cash crop in India. It is also called small holders
crop and it holds an unique place in rural economy. The palm of arecanut is a
monocot belonging to the family of palmaceae. The arecanut palm, catechulium, is
the source of common masticatory nut, popularly known as arecanut, betelnut or
supari. It is extensively used in India by all the sections of people and is an
essential requisite for all religious and social ceremonies consequently; the palm
occupies a prominent place among cultivated crops in some states of India.
Arecanut palm is grown-for betelnut, which is used as a masticatory. India
produces 3.79 lakh tones annually grown over 5.13lakh hectares of land. The
productions of arecanut in India constitute 88% of world production. The economic
importance of arecanut sector can be realized from fact that nearly 50 million
people in the country are somewhat directly or indirectly connected.
Arecanut palm is a tropical crop which lays a important part in domestic
economy of eastern countries like Srilanka, Malaysia, Sumatra, Indonesia and java
etc. in Srilanka it is widely grown but in India only southern India cultivate areca.
Not only is this cost of cultivation in Srilanka lower than in India.

Origin
Areca nut is cultivated back to pre-christen era. In ancient time existence of,
areca is supported from Sanskrit name Kramuka there is reference in Chinese
work written in between 140 and 60 B.C. the earliest reference by a European to
habit of chewing betel nut occurs in writing of macro polo (1298 Ac); according to
watt (1899) it is a native of Cochin China, Malay peninsula and neighboring
islands. Raghavan (1957) indicated since majority of species of areca have been
reported from Malay Archipelago, Philippines and other East Indies islands. The
center of origin of areca is likely to be around that region. Thus, East Indies group
of islands it may be taken as center of maximum variation. Dr. Bretneschneide also
believes that it is a native of Malay Archipelago. But Miguel and Blanco dont
agree to this view.
According to taxonomy areca nut palm have been classified under following
way
Phylum

: Plantae

Subphylum

: Fanerogamae

Division

: Angiosperms

Class

: Monocotyledons

Series

: Calicin

Order

: Palmae

Family

: Arecaceac

Genes

: Areca

Species

: Katechu

Areca nut is not native of India but it is an introduced plant. The exact date
of introduction of arecanut cultivation in India is not known. In India areca palm is

cultivated all along western coast from Maharashtra to Kerala, on the plateau of
Karnataka in Gangetic delta- of West Bengal, Assam, and Meghalaya.
In Karnataka, areca nut had its origin from Bombay area and it appears to be
introduced after 781 century A.D. cultivation of arecanut had extended from
Bombay then all over the state, in the state areca nut is grown as a main crop.
Distribution:
India and throughout south East Asia
Country

Areca (in hectare)

Production (in tons)

India

222800

248800

Bangladesh

105800

98530

Srilanka

8200

68500

Malaysia

7750

6450

Description:
Avery attractive plant cultivated in all warmer parts of Asia. It is a clustering
palm about 3m high, with light green stems and dark green fronds. It has fragrant
lemon scented pale yellow flowers, which form into orange fruit about 25mm (1
inch) long. The yellowish red fruits have the size of hens egg, containing the seed
about the size of a corn, conical shape with flattened base and brownish color
externally: mottled like a nut meg, the seeds are cut in to narrow pieces and rolled
inside betel papers leaf rubbed over with lime and chewed by the natives. They
stain the lips and teeth treed and also excrement, they are hot acrid when chewed.
Constituents:
Areca nut contains a large quantity of tannin also Gallic acid a fixed oil gum
a little volatile oil, lignin, and various saline substances. Four alkaloids have been

found in areca nut arecoline, arecain, guracine and a fourth existing in a very small
quantity, arecolin resembles pilocarpine has the effects on the system. Arecaine is
the active principle of arecanut.
Cultivation
Arecanut is fairly slow growing but an easily grown palm for both tropical
and sub tropical. It needs shade when it is young as well as a moist drained soil.
This plant is very useful and attractive to a rain forest garden.
Medicinal Actions and Uses
Areca nut is aromatic and astringent and is said intoxicate when first taken.
The natives chew these nuts all day, Whole shiploads are exported annually from
Sumatra, Malaya, Siam, and Cochin China. In these countries arecanut is made
into a dentifrice on account of its astringent properties, boiling down the seeds of
plant into consistency of an extract often makes catechu, but proper catechu used
in Britain is produced from acacia catechu. The flowers are very sweet scented and
in Borneo are used in medicine as charms for healing of sick. In India nut as long
been used as a taenifuge for tapeworms. The action of the Cain resembles that of
Muscatine and Pilocarpine externally and internally. It is used to construct the
pupils, Aredoline hydro bromide a commercial salt is a stronger stimulant to
salivary glands than Pilocarpine and a more energetic laxative than serine. It is
used for colic in horses.
Arecanut is used against leucodesma, leprosy, cough, fits, worms, anemia
and obesity as a purgative and as a stimulant and as appetizer. The uses of arecanut
in India are huge. It plays a prominent role in the religious social and cultural life
of our people, irrespective of caste or social status. In religious ceremony arecanut
is used in Tambula used as a drug to destroy intestinal worms. Elsewhere they

are used primarily in veterinary medicines to deform horse, dogs, and other
animals. Arecanut, the seed of areca palm is chewed as a stimulant throughout
southern Asia. It is chewed along with betel leaves and also chewed directly as
Scented Supari. It is also used as raw material in the manufacture of gutka.
The areca palm is also used in many parts of Asia. The palm is used in the
construction of houses, buildings etc the dry palm is used as fire wood. Arecanut
husk is largely used as domestic fuel. The sheaths of areca nut are used in
preparing hats, plates and cups by the rural people. These are also used in religious
ceremonies and medicinal purposes.
Tannins are obtained as bi-product from process of preparing immature betel
nuts for masticator purposes. It was found that tannic acid from the nut when
mixed with ferrous sulphate in warm water gave back the writing ink of acceptable
quality. Other uses of tannin as adhesive in plywood industries and as textile dye.
Fat from areca nut can be extracted and be made edible areca fat has compatible
characteristics with hydrogenated coconut oil.
Areca nut husk is used as substrate from mushroom cultivation for making
hard boards plastic and brown wrapping paper.
Leaf sheath is yet another raw material obtained from the areca nut palm. It
is used for making ply boards. These boards can be used for making suitcases fire
boards and tea chests.
Other species:
There are 16 varieties of areca nut in southern Asia. Out of these 10 varieties
are found in Philippines itself the other 6 varieties are
1.
2.
3.
4.
5.

Areca vestiaria.
Cyrtoostachlys lakka.
Iriareta SP
Pigafetta filaris.
Areca catechu.

6. Areca concimna.
Areca verstiaria is found in North Sulawesi and neighboring Maluku
province this palm is one of the most beautiful ornamental wild pinnate palms.
This areca verstiraria is known as Red Pinang or Pinang palms, not only this they
have various names such as A.Heinri, Areca Paniculata, A.Leptopelate, etc. areca
vestiaria the bright Red Prophyll and crown shaft make a striking contrast against
dark green leaves.
Cyrtistachys, L is more in impressive species than other species of arecanut
palm.
Iriareta Sp. Is a species found in South America the habitat of palm is
swampy bearing impressive stilt roots.
Pigafetta filaris is native to Sulawesi Island and it resembles areca vestiaria.
Areca catechu is one of the species of areca palm which is found throughout
South East Asia. This species is commonly found in Srilanka, which has 3 sub
varieties they are Sinhaslapuiwak, Ratapuwak and Himbanpuwak.
Areca concinna is cultivated

Srilanka and grown mostly in low wet

countries.
In India Mangala is a variety which has been brought for cultivation
subsequently 2 high yielding varieties of areca nut are Sumangala and Sree
mangala. They are selected from Indonesia, Singapore respectively. The important
variety of areca nut is found in Mysore parts of Karnataka state is Ramadaka.
The other is Mohitnagar; an indigenous variety grown in the parts of Westbengal
has high yield potential.
Thus the palm appears differently in its indigenous habitat. Because of this
there is confusion in identifying the species of this type of palm.'
Botany

The genus of areca nut palm is believed to contain about 76 species among these
areca catechu is the only cultivated species the nut that is chewed as mild stimulant
through nuts of few other species such as 'Areca Triandra are also used as
masticator.
The generic character of genus areca are stem erect smooth green in upper
portion annulated leaves pinnate base of petiole expanding to smooth green sheath
leaflet thin often confluent with several midribs attached to rachis in vertical line
below leaves branched bearing numerous closely set Spikes sepals small petals
much longer and erect female flowers Areca nut palm have an 'adventitious root
system and is typical of monocots the roots radiate from all sides and generally
grow in direction in which they start. The number of roots and its color depends
upon its age. The stem is marked with scars of fallen leaves in regular annulated
from girth of stem generally depends upon genetic variations and soil conditions.
The produces leaves in succession and when leaves are shed permanent scars are
left on trunk. Court of scars on stem can approximately judge age of palm. The
length of stem varies with intensity of population, climate etc.
The crown if palm located at top of the trunk is subtended by leave sheaths
as leaves at various stage of development .the number of leaves varies depending
on age and vigor of palm nutritional status of soil. In adult palm number of open
leaves on crown ranges from 7 to 12 and in l year old palm has 7 to 8 leaves.
In regular system of planning the population of 13000 palms per hectares is
common each palm sheds about 5 leaves in a year. The stalks of areca leaves are
flat and somewhat in cylindrical in shape and measures about 16 to 100 cm long
and 30 to 45 cm broad.
Unfortunately not much is known about genetics of plant information
regarding varieties their behavior under varying soil and other conditions of

economic plantations and the yields that might be expected are generally not
available.
Fruit:
The fruit of areca nut is a mono-locular ones seeded berry. It is orange red to
scarlet when ripe and consists of thick fibrous outer layer, the husk which enclosed
a single seed.
In areca nut a mature fruit consists of three zones exocarp, mesocarp and
endocarp these are more or less distinct in structures the total period from full
bloom to maturity ranges from 35-47 weeks depending upon individual palm.
Hence different shades of variation in morphological characters of fruits are seen.
Often grower speaks of different varieties relaying on size and shape of nuts
place an important role in changing from green to orange, from render stage
ripening stage.
The fruit takes about 8 months to matured fertilization the green of tender
slowly changes to orange color or yellow or scarlet red. Husk is thick and fibrous
enveloping single seed generally known as nut. The endosperm of seed is reddish
brown with dark wavy lines giving it marbled appearance. There is a single embryo
situated at the base of the seed. Propagation is from seed, which may sown or bi
nursing the palm and translating the same after growing for a period of l to 4 years.
The seed bunches and are harvested only when they are fully ripe indicated by
falling down of one or two ripe nuts in bunch. Nuts of good size and shape from
the mid region of bunch are removed and air dried for a few days or directly dried
in sun for couple of days more. Thus these seed nuts are usually harvested from
February to April.
Areca nut is thus major crop in most parts as it is grown and vast majority of
areca nut growers depend entirely on income from areca nut cultivation for

livelihood. The cultivators paid adequate attention to land selection, planning and
intensive cultivation. Because of this the cultivators are facing major problem of
unbridled expansion of crop coupled with over exploitation of ground water.
The government of India has restricted the import of areca. This has enabled
the cultivators to 'get responsible price and increase the production. Thus, to
analyze this problem and to find the better solution the project is divided into
chapters. The main purpose of this project is highlight marketing prices of areca
nut. To serve this main purpose the cultivation aspect is also equally important.
By taking these points in mind the TUMCOS is selected to conduct the
project Work along with survey of cultivators of Channagiri to know present trends
of marketing of arecanut.
The first chapter contains an introduction about the product, its Objectives,
the methodology and the limitations. So this chapter mainly deals with information
about arecanut palms.
The second chapter is detailed profile of product for the project report
arecanut. This chapter consists of the full details of areca origin, types, harvesting
and processing technique and also marketing aspects.
The third chapter is society profile. Society profile has sub divisions. They
are history, its objectives, management, and customer service. These are explained
in brief according to the information provided by the TUMCCS of Channagiri.
The fourth chapter is concerned With co-operative marketing in co-operative
sale societies. The Working of the co-operatives is analyzed in detail.
The fifth chapter is the finding of the survey made in TUMCOS. It explains
about problems, suggestions and also consists questionnaire with adequate
conclusion in the end of report

Methodology
A survey was conducted in Channagiri Taluk, to collect data in Connection
with cultivation and marketing practice of arecanut. This survey is mainly based on
primary data and secondary data.
The survey was conducted in opinion of cultivators. Secondary data was
collected from several journals and books Written on arecanut. Not only this, a
structured questionnaire was also prepared to obtain answers form respondents i.e.,
cultivators.

CHAPTER-2
PRODUCT PROFILE

ORIGIN AND HISTORY

TYPES OF ARECANUT
HARVESTING AND PROCESSING
MARKETING OF ARECANUT

INTRODUCTIONThe areca palm belongs to the family PALME of monocotyledons. The

characteristics of areca palm are un-branched slender system and dense crown of
green healthy leaves, each leaf is composed of many leaflets. The arecanut growers
in the clusters on the trunk. The native of arecanut is East Indies.
The seed of arecanut palm is chewed as stimulant throughout southern Asia.
It is about two inches and five centimetres long and has mottled brown and grey
colour. The ripened seeds are gathered between august and November. Those seeds
are boiled in water, cut into pieces anddried in the sun light .Each dried seed is
wrapped together with a shell line in a leaf of piper areca and chewed.

Arecanut contain all aloud areca lime, a mild stimulant that produces a
feeling of well being but habitual eventually blackens the teeth and caused them to
decay. Arecanut is also used in veterinary medicines. Chogaru, a by product of
arecanut is used in preparing ink and treating fishing nets.
ORIGIN AND HISTORY
The palm is widely cultivated in the tropical countries where climatic
conditions are congenial to its growth. Its cultivation is said to date back to PreChristian era. The existence of the Sanskrit name Kramuka supports the view
that the tree was being cultivated in India work written between l4OB.C. and
6OB.C. Under the name pinang which is equivalent to arecanut isles. The
earliest historic references by a European to the habit of chewing betel nut occur in
writing of macro polo (1298 A.C) .Blame says that the habitant of palm is Malay,
Siam and neighbouring islands. But some does not agree to this view.
In India, areca nut palm is very popular tree in south yielding the much
favoured masticatory areca nut, betel nut of supari, chali, chaliya, Karmuka,
brahmadaru. In numerable references can be found in several ofancient scripts. It
has also been mentioned in RigVeda, Ramayana, Mahabharata, Skanda purana,
Sama devas Sarithasagara, Vagbhatas Astanga Hrudaya and Banabhattas
Kadambari. Vagbhata in his scriptures has described the medicinal properties of
areca nut.
ARECANUT IN INDIA:
Arecanut also known as betel nut is one of the most importantcommercial
crop of India. It plays an important role in religious, social, andcultural life of our
people. The commercial product is widely distributed allover the country and is
consumed by all classes of people in India areengaged in production, processing,
and trading of arecanut.

According to the available statistics, India is the largest arecanut producing

country in the world. The crop is cultivated' mostly in small homestead gardens,
very often as mixed crop. The chief pockets of production of arecanut in India are
distributed in states of Kerala, Karnataka, and Assam where it is grown extensively
and a smaller extent inMaharashtra, Tamil Nadu, and West Bengal.
India has been traditionally an arecanut growing country. At the time of
position of the country in l947, nearly 50% of total area was in EastBengal region.
Since, the Indian production was insufficient to meet the local demands; the
country was regularly importing large quantities of areca nut from other areca nut
producing countries to meet its requirements. Since the unrestricted import of
foreign areca nut had a depressing effect on internal price of the commodity, the
government of India fixed quantitative and monetary ceiling on volume of imports
and also levied a duty on quantities of areca nut imported in to India since 1951.
Simultaneously efforts were made to increase production within the country.

ARECANUT CROP IN KARNATAKA

In Karnataka, arecanut apparently had its origin from Mumbai area and it
appears to be introduced after the 7th century A.D. no prior records before this is
available. The cultivation has extended from Mumbai area through Badami to
Kuntala region including Sagara, Soraba, and shikaripura areas of Shimoga
district by llfh century. The Hoysalas during 12th century were mainly responsible
for expansion and afterwards it spread all over the state.
The highest contributor in the state is south canara, which contributes 25%
of the total output. In these regions areca nut is the important source of lively hood
of local people.
The cultivation of arecanut in Karnataka state is mainly concentrated in the
south canara, Shimoga, north canara, Chikmangular. Here there is heavy rainfall
and humid climate; which suits the growth of arecanut. Because of these reasons it
accounts for more than 95%total area and production in the state.
Natural forests generally surround the plantations in Sirsi taluk of uttar
kannada(u.k). These forests provide green and dry leaves for manuring arecanut
based gardens. These inputs render the gardens of this Taluk more productively.
Thus important of yield through proper agronomical practices at plant
protection measures have been made in past 2 decades in Karnataka.
TYPES 0F ARECANUT
Areca nut produced in India can be classified broadly under three heads, namely.
1. Raw or Green
2. Sun- dried
3. Boiled

Raw nuts are mainly consumed in area of production. Sun dried or and
boiled nuts it is also marketed, both as Whole nuts and after splitting or in sliced
form. Further, boiled nuts may be coloured or uncoloured.
Under each of main types above, a large number of qualities or
grades are prepared. They are,

Sun dried whole nuts:

The quantity of this nut is judged by its maturity colour, moisture contents and
presence of brokers and dust are considered inferior.

Boiled nuts:
Maturity, other show, colour, and moisture contents and percentage of
broken determine quality of boiled nuts. The best nuts of this type are prepared
from tender immature nuts. Outside colour us important. Bright dark brown is
indicated for freshness and of good quality. While dull appearance show poor
storage of the material. In case of Whole boiled nuts the inside colour is also
important. The best grade TOUCHI API should show a creamy white colour
when cut.
In Karnataka there are mainly five types of arecanut, they are:
1 HASA
A. Pheton
B. Api
C. Saraku
D. Rajalu
These are tender nuts which are cut into pieces, then boiled coloured and
dried. The maturity of nuts determines different varieties. Tender the nut, better the
quality.
2. BETTE

A. Chikni
B. Edi
C. Bette
These are tenders Whole nuts, which are boiled Without slicing.
3. GOTU
The Whole boiled fully matured nut is GOTU
4. CHALI
These are matured ripe nuts, which are sun- dried and husked.
5. CHUR
These are tender nuts which are cut into small pieces and are boiled coloured
and then dried; this variety is found only in maiden region of Karnataka.
HARVESTING
The time of gathering of the fruits depends upon climatic conditions, soil,
quality of the nut to be prepared and material required by the grower. Harvesting of
the ripe nuts starts from October to April. The fruit takes about eight months to
mature. When the fruit mature the bunch of areca appear near the top close to the
leaves. Climbing up an arecanut and cutting the bunches is a long string and let it
go down where another person removes it. A long bamboo hook is often used to
draw the palms together for cutting the bunches without climbing each and every
tree. In some cases, the bunches are cut and dropped into the blanket stretched tight
a few feet above the ground. In some cases, a gunnybag is thrown up to together.
When it is plucked the tender nut that is green in colour slowly changes to
orange~yellow, yellow or scarlet red. Husk is thick and fibrous enveloping a single
seed generally known as nut. The seed is reddish brown with dark wavy lines
giving it marbled appearance. In harvesting quality of the nut is very important. So
far the better quality of nut, following are some important to be kept in the mind.
l. Soil:-

Areca nut is grown on variety of soil with good drainage and adequate
depth. Some of the varieties of soils where areca nut can be grown are loamy soil,
alluvial soil, and literate soil. The primary need, which a crop requires, is the
ability of the soil to retain moisture. The largest areca nut growing area is found in
gravely lat elite soil of valley and hill slopes in the regions of the heavy rainfall.
Dampness of soil and shade are important for good growth, mean while severe
drought and strong winds have adverse effect on growth as well as yield of areca
nut.
2. Climate:Areca nut is a delicate humid tropical crop, which must have a rainfall
ranging from lOOOmm~3000mm, the altitude at which it is grown varies from 700
to 900m of MSL. lt also varies according to the latitude of the place. The
temperature should be around 15 to SOC rainfall, humidity and manorial practices
have great influence on the cultivation of areca nut.
3. Drainage:Drainage is an important factor, which influence the growth and yield of
areca nut. Drainage includes both sub- soil and surface drainage cultivators often
stress upon the proper drainage and application of green leaves. The drain should
be clean and open. The depth of drain should be at least 1 5cm and to 3Ocm.
4. Pets and diseases:The pets often hamper the growth of areca nut. The areca nut should be
protected from these pets like monkeys, White ants and rhinoceros beetle, spindle
big and inflorescences caterpillar etc...
The common diseases which attack the areca palm are kole roga, yellow leaf
diseases, food rot or anabe roga, bud rot irtflorescences die back and leaf spots
etc...

Kole roga is also known as mahali or fruit rot". It is one of the major
diseases of arecanut. Yellow leaf disease is most serious malady affecting the crop.
Food rot or anabe roga is a disease Where leaves exhibit Wilting symptoms and
droop down covering stem and nut shed of terminal buds and shooting tissues.
Taking proper precautions like putting insecticides and pesticides can control
these diseases.
5. Temperature and rainfall:The temperature congenial for areca nut ranges from minimum 400
maximum of 400c, though palm-flourished within a tempeirature l40c grows well.
The rain fall of more than 4500mm as well as in low rainfall are where
rainfall is 750mm is suited for areca palm.
6. Nursing:Areca nut is exclusively seed propagated crop. Being a perennial, it essential
that adequate care is bestowed in selection of proper plantir measures and
materials. These are the 5 important stages of selection an rising of seedling.
l. Selection of mother palm.
2. Selection of nut.
3. Selection of proper technique in germination.
4. Raising seedling and
5. Selection of seedling
7. Irrigation: Areca nut is grown both under irrigated land as well as rained condition. If
there is rainfall and moisture in the soil and in the areas where the rainfall is fairly
uniform and well distributed no irrigation is practised. Nature of soil, availability
of the water and financial resources of farmers determine the frequency of
irrigation.

Thus, irrigation is an important component in the management o areca nut in

areas where monsoon in seasonable.
PROCESSING OF ARECANUT
After the crop is harvested and before it reaches the consumer, it is subjected
to one or more forms of processing generally represents an important stage in
preparing an agricultural produce for the market.
The method of processing varies from one place to another according to
quality of nuts prepared and on demand from its consuming centres.
Nut is used in raw or processed from. Depending upon nature of end
product, fruit is harvested at different stages of maturity for processing. lts seen
that fruits and nuts vary in size, shape, texture and taste. Six to seven month old
green nut is comparatively hard, deal for making processed kalipak of south
India. At nine months it become hard and then is used in raw from or after drying
as chali supari.
The fully ripe arecanut is very popular in coastal Karnataka, Kerala, Assam
and West Bengal etc .... in this inner core is practically Well preserved by steeping
in Water. Such preserved nut is known as Neetadaka. Another most popular trade
type of arecanut is dried in sun for 30 to 40 days on dry ground. The dried nuts are
dehusked and marketed as Whole nut depending on size, jini, jamnagar, srivardhan
& moti.
The most important form of processed arecanut is kalipak of south India.
The nuts of 6 to7 months maturity are soft and fingernail can be pressed into it.
The processing consists of dehusking cutting the soft nut into pieces, boiling, kali
coating and drying. Because of kali coating of arecanut, it is known as kalipak.
In Karnataka mainly sliced and Whose boiled nuts are prepared. The curing
and processing methods adopted vary slightly from place to place in state. The

de~husked nuts are boiled in copper vessels for about a couple of hours. In case of
boiling Whole nuts, the common test is that when the nut loosens its eye, it is
supposed to be fully boiled. These nuts are dried on a mat or on housetops for 8
days.
The processing of areca nut is different in different regions of Karnataka for
example:
a) In south canara, only fully ripe nuts are harvested.
b) In north canara, boiling and drying the white husked nut is cutting is
in practice.
c) In malnad, whole or cut boiled nuts have been vague.
The following are some of the Varieties of the processing the nuts for
marketing. They are,
a) Whole semi- mature nuts. _
b) Tender immature nuts.
C) chain.
d) Mature un- dried nuts.
e) Tender immature nut- it is sliced, boiled, coloured, and dried.
Under each variety there are large number of classified grades fixed by both
growers and traders. The whole semi-matured grades are the nuts, which are boiled
without slicing them. They are known as Bette. The tender immature nuts are cut
into 2 pieces, and then they are boiled, coloured and dried. They are commonly
known as Hasa.
The chali i.e. sun- dried whole nut is prepared after drying it for number of
days .they are husked and packed in gunny bags. The processing of immature nuts
is a laborious and costly operation. These are known as Choor or Chur. The
other important variety of I processing is the matured un- dried nuts, which is also
called as Gottu.

After processing of arecanut, grading, activity is undertaken by growers and

cares. They usually dont follow any specific system of grading.
But merchants in all assembling markets of the country invariably practice
classification of nuts into several grades. This is done generally when seller has
sold his produce to a merchant. Chali is graded by passing the nuts through the
grading machine. The grading of Whole or sliced boiled nut is generally done by
hand picking up female labourers who skilled in the job. Specifications of grading
generally differ from merchant to merchant even in same market.
Thus, the method of preparing nuts for the market by performing the
important functions like harvesting, plucking, processing and grading are common
throughout the country.
MARKETING OF ARECANUT:Commodities like areca nut Whose production is concentrated in four states
and consumption spread all over the country, the efficiency of marketing system
assumes greater importance. Marketing of areca nut is more expensive because of
size of productive unit, dispersion of producers, great disparity in quality and
quantity of product etc.
Arecanut has no exclusive markets for their sale in the country. Like some
other commodities they are handled in a particular market. They are primary,
secondary and terminal markets.
a) Primary markets are generally products market, which are held at village level
once in a Week on fixed days.
b) Secondary markets are regular Wholesale markets held daily at fixed place and
are usually situated in district or taluk head quarters. These are in fact the best
forms of organised market

c) Terminal markets are in which produce is assembled for further distribution.

This type of market is common in trade of processed arecanut but does not exist for
ripe arecanut.
ASSEMBLING AND DISTRIBUTION:Arecanut is marketed and unhusked whole fruit, unhusked and dried nut,
boiled and Wholekernel or theirtnuts. Nearly l/3 of total arecanut production in
India reaches the consumer as ripe fruit and remaining in the processed form.
Assembling refers to those business activities, which are concernedwith
concentrating goods under a single management of control. The objectof
assembling is to makes goods Wanted by producer of consumer at theirhands.
In case of arecanut that is produced in scattered small fields in certain season
assembling is most important. Thus, assembling implies bringing goods at
convenient point it from buying efforts.
MARKETING PRACTICES:Marketing is performance of all business activities with the help of
specialised operators like brokers, middleman and commission agents. The middle
man services are essentially link the producer with the consumer. In markets like
Mangalore and arrange for sale of areca nut. They charge commission at some
percentage on the produce.
The co- operating marketing societies for arecanut have been Organized in
Karnataka. These societies are firmly successful in their functioning. All these
marketing societies in the state come under central arecanut marketing and
processing co- operating limited, Mangalore.
Thus, marketing of arecanut in India is very defective. The chain of
intermediaries and ignorance of grower is the main cause of this. Another
important defect is that the average producer who sells the processed arecanut has
neither the means nor the quantities sufficient to run a curing yard economically.

So, for cutting, boiling them need expert handling like covers. Naturally, it is only
large produces that boil his produce and prepare it for the market. There is no
regulated; market for the arecanut. The seller is therefore subjected to number of
deductions both in cash and kind over which he has no voice.
METHOD OF SALE:In the sale of areca nut normally close tender system is adopted, in
Karnataka. This the system adopted in Karnataka. This is a method Where each
individual producer brings the produce for sale. The producers produce is allowed
a lot number. The packed goods are exhibited for the sale in an arranged manner.
Each buyers records price he is prepared to lot number in the bid slip supplied by
market committee. After recording the prices in bid slips they are deposited in a
sealed box. The buyers enter their name in the priority list. The bid chits are taken
out from the box at a specified time and are arranged in the serial order as per
priority list and them compared lot by lot is given to highest bidder with consent of
seller.
In Tamil Nadu and other parts of India mostly nuts are sold to cures. They in
return sell the finished products in Wholesale market. The cures dispatch produce
to his commission agent. The produce is inspected and bids are made under cover
or cloth. When bidding is over commission agent declares the highest bid and
name of the bidder. This method of sale is very traditional and was used in olden
days before class tender system was adopted.
RESALE PRODUCE
In distribution of arecanut the some agencies are employed. These are
Commission agents, Wholesale merchants and retailers. Resale is carried through
commission agents in important distributing canters in India such EIS Mumbai,
Allahabad, Kolkata, Chennai, Agra, Bangalore, Gulbarga etc .... terms are settled

by negations. The cost of distribution includes not only market charges for service
but also charges for transportation there too.
SALES TAX
Rates of sales tax on arecanut vary from state to state. Besides this there is
central tax for interstate transaction. Sales tax on the commodities is levied at two
or three points, resulting up to 25% sales tax at value of original consignments
when it reaches the consumers.
PRICING 0F AREANUT
The price of arecanut varies Widely from market to market and even in the
same market. This variation due to variations in quality, size of arecanut, colour;
characteristics .etc .... arecanut like other produces are subjected to seasonal
changes, standards of quality should always be there for reasonable prices over a
long period. Prices of areca nut may be studied considering prices at three levels.
1) Farm level price
2) Whole sale market price
3) Retail market price
Form level price are price, which are mainly considered in primary market.
Whole sale market price is priced on commodities sold on bulk in secondary
market, and retail market price is price on commodities of terminal markets.

CHAPTER-3
SOCIETY PROFILE

HISTORY OF TUMCOS
OBJECTIVES
MANAGEMENT
SHARE CAPITAL AND MEMBERSHIP

HISTORY OF TYMCOS:The history of organisation may be read like a fairly tale. But then it is
exactly the all member feels of the transformation that has come to their individual
identities. incorporates in the era of recession in the market, this organisations has
comes a long way from its origin to its full fledged performance today. It is the
largest supplier of arecanut and its products in the centre place of Karnataka. It is
formed for marketing of arecanut of its members as well as outside growers.
It has market area for Channagiri taluk only. Further plans are being done to
widen the market area. To enhance the present market area of research an
alternative uses of Arecanut in collaboration with some of the leading research
institute of India.
This co- operative society TUMCOS was established on 3l-05- l984 by
the founder president late R. MARULAPPA B.sc(Agri), Ajjihalli.
The total acreage under cultivation is 264000 hectares and theannual
production estimate at 313000 metric tons, with Karnataka and Kerala accounting
for nearly 70% of total production over 6 million people are engaged in area nut
cultivation, processing and trade more than 85% of areca under cultivation is made
up of small and marginal holding.
A sudden market crisis in the year l970~7l. When prices registered a market
fall, which caused considerable concern to the growers. Growers had been thrown
into panic with prices coming down to the half of what was a prevailing untilll
970- 7l session.
Various measured were thought of for original marketing management and
leaders among growers sat together to find a way out. State government of
Karnataka, on the advice of an expert committee, recommended organizing a
central agency in the public or co- operative sector. Thus, with the blessing and
active support of the government of Karnataka. The central arecanut marketing co-

operative limited popularly known as the TUMCOS (Thota Uttpnna Maharata

Sahakara Sangha Niyamita) was born and registered on 3051 july 1999 with the
Sec4 (2) of Multi Unit Co- Operative Act 1 984.
The area of operation of this co-operative procurement and processing of
arecanut extents to the area of Channagiri Taluk. But the marketing activity has
been extended to whole India
OBJECTEVES TUMCOS: Procuring areca nut grown by member cultivators and from other growers
on an agency basis or on outright purchase basis.
Sale of areca nut and their products to the best advantages of the members
and also to advance loan to members to pledge of the goods and to do all
other things necessary to carry out the objective.
To promote and develop area' cultivation, marketing and processing.
Building quarters to the staff members and protecting them,
Providing chemicals, chemical fertilisers, and agriculture equipments to
farmers at concession price.
Helping farmers to grow a good-quality arecanut and providing them
necessary information relating to high yield variety of arecanut crop.
Conducting meeting to exchange suggestion of the members regarding the
performance of the society.
Building godown for storing farmers arecanut products, marinating it,
repairing it.
Building guest houses for the members of the society.
Providing members day go day essentials of life (expect food andspices) .

CHAIRMAN AND BOARD OF DIRECTORS OF TUMCOS

H.S.SHIVAKUMAR (chairman)

R.M.RAV1
C.M.RAJU
P.M.PRAKASH
H.S.MALIKRAJUNA
M.N.MARULAPPA
M.LOKESHPPA
G.R.SHIVAKUMAR
H.HALAPPA
L.V SHOBHA
K.G.JAYAPPA
H.NPRABHAKAR

MANAGEM ENT:
The management of TUMCOS vest the broad of directors consisting of IO
directors. These directors are elected by members of the society i.e., share holders
of the society once in 5 years. The government also appoints 4 government
nominees and one bank nominee..
The president conducts day to day activities. The executive committee and
business committee devote more time to scrutinize and decide about the financial
and business transactions of the institution.
The composition of this committee is as follows:
Management
Executive committee

Staff committee

President

Secretary

Ten directors

Accountant

4 Government nominee

Sales Manager

1 bank nominee

Cashier
2 First grade clerks
2 Second grade clerks

1 In charge clerks
1 Peon
1Watch man
MEMBERSIIIP AND SHARE CAPITAL:The members are grouped in to two categories.
Membership:
A class: administrative members having arecanut
Plantations:
B class: state government
C class: institute Working with society
D class: merchants, commission agent, entrepreneurs.
SHARE CAPITAL;
A class share consists of Rs 1000. There is no restriction for B share
members can subscribed1 / 5 of the total share capital or Rs 10000 Whichever is
less. Share holders get the share certificates containing the no shares issued, face
value of the share and rate of divided on it. A member can transfer his share to
another with the precession of institution for this purpose he has to pay the share
transfer of RS1
DEPUSITS:
The co- operative has introduced various schemes for mobilizing deposits,
certificate. Further, it has also introduced collection of deposits under members
running account. The members who is need of found for feature, credit the sales
proceeds to the running account and this gets more benefits out of TUMCOS.
Members deposit earns 6% interest on the maximum balance held in the
account during a particular month.

BORRGWINGS:
Depending on the members meeting the institution can borrowfunds from
outside for its day to day operations. The limits of borrowing should not cross
according to act 24.
Borrowings from different financial institutions

Table -1 SALES AND PROFIT DURING 2013-14

Arecanut

Sales (In Rs)

11,48,57,600,00

Net Profit ( In Rs)

15,37,45,000

TABLE-2
TABLE SHOWING PROFIT OF 6 YEARS
Year
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2011-12
2012-13
2013-14

Amount (In Rs)

8,097,000.00
14,20,08,000.00
15,09,50,000.00
16,02,60,000.00
16,04,60,000.00
16,58,50,000.00
10,68,000,00
13,93,000.00
15,37,45,000.00

CHAPTER-4
CO-OPERATION MARKETING
INTRODUCTION
OBJECTIVES
CHARECTERSTICS AND FUNCTIONS

 GRADING AND WAREHOUSING

CO-OPERATIVE MOVEMENT IN INDIA

The co- operating marketing in India has been in growth of over85years and
it is largely dependents for its origin. This movement was first officially set up in
1904 provided for the registration of primary' credit societies only in 112. It was
found insufficient to meet the growing needs of the market. The government
realised these deficiencies and passed a comprehensive co-operative societies act
1912. After 112, there was a rapid growth in number of co- operative societies.
However, the development was not uniform in all provinces. But these act had
defects in the working. So, the government of India act 1919 was passed and co-

operation became a provincial subject and was administered by provincial

governments. Some government passed their own acts to undertake developments.
Bombay gave the lead by passing the cooperative societies act of 192 5. This was
followed by madras in 1932 and Bihar and Orissa in 1935. Other states adopted the
central act of 1912.
The act of 1919 gave great stimulus to the movement. Its success was
measured more by its quantity than by its quality.
Firstly, the co-operative movement in India didnt spring up from the
People. It was initiated by government resolution with a view to solve the
problem of rural indebtedness.
Secondly, started to provide the farmers with cheap credit, it continued to be
predominately credit movement.
Thirdly, the structure of co- operative organization was uniform in almost all
the province.
Fourthly, full scale development of multi - purpose idea in several states.
Finally, the movement had a haphazard growth, with hardly any co- ordination
between various branches.
The major development in the co-operative field since independence was the
appointment of committee of direction (known as rural CICOUT survey
committee) in 1951. These committee recommendations Were approved and at last
co- operative movement in India was introduced.
CO-OPERATIVE MARKETING:
INTRODUCTION:Cooperative marketing is an area which the co- operative movement has
played a considerable role. The co- operative marketing of cash crops would be
effective only if processing is also done by co-operatives Well established
processing co-operatives can effectively for agricultural production. In olden days

the agriculturist had to suffer a great deal on account of undeveloped, unorganized

and confused marketing system famers were discouraged in undertaking
production of crops in the absence of suitable marketing facilities. Merchant
traders duped the illiterate farmers. To encourage agriculturists and to fulfil their
requirements co-operative marketing was introduced.
Thus, cooperative marketing is the system by Which a group of farmers join
to carry on some as all process involved in bringing goods from produces to
consumers.
CO-OPERATIVE MARKETING IN INDIA!The co- operative marketing act of 1 904 restricted the development of
Co-operative. credit societies but extended till 1912. The act enabled the cooperative marketing societies to be started in India was Kumbakonam agricultural
society in 1913. Generally, marketing like Karnataka, Gujarat, Chennai, Punjab,
etc...
In 1951, all India rural credit survey was carried out, which foundthe cooperative marketing unsatisfactory. Then, this committee recommended the linking
of credit with marketing. This scheme was based on three fundamental principles
of state partnership at different levels.
a) Full co-operation between credits marketing processing.
b) Administration through adequately trained and different personnel.
c) Planning and development of plan for the development.
The committee recommended for the formation of National Co-Operative
Development Warehousing Board. This was the beginning of co- operative
marketing in several states of India.
CO- OPERATIVE MARKETING STRUCTURE:
The structure of the marketing societies in various states consists of two or
three tiers Where there are two tiered, it generally comprises primary marketing

societies and apex marketing societies. In three tiered structure, there is usually
another society as direct central marketing societies with primary and apex or state
marketing society.
A) PRIMARY MARKETING SQCIETIES.
Co- operative marketing has a pyramidal structure. At the base there are
primary marketing societies consisting agricultural purchase and sale and
production and sale societies. Their area of operation may roughly correspond to a
taluk. They buy and sell agricultural commodities and various other goods for the
benefit of their members. These societies- collect, grade, standardize, and make
arrangements for the sale of produces of their members and also advance loans to
the members against goods produced.
B) CENTRAL MARKETING SOCIETIES.
Above primary societies there are the district central marketing societies,
which generally operate over a part or an entire district. They do the Work of
buying and selling and extend credit and other help to the primary societies.
C) STATE MARKETING SOCIETIES:
At the top of these are the states marketing societies of federations which are
intended to serve as apex institutions for all co- operative operating in the state.
They do the work of buying and selling and giving credit and other facilities to
central societies and primary societies.
At the all India level is national agricultural co- operative marketing
federation set up during l958~1959(NAFED). The tribal co- operative development
corporations federations have also been established at the primary level are
affiliated. And central areca nut marketing and processing Co- operative was also
set up in India. All state government regarding the formation and functioning of
co- operative marketing societies has enacted legislation.

Co-operative marketing structure

National agriculture co~operative
Marketing
State co-operative

State co-operative special

Marketing

commodity marketing
District /central co-operative
marketing federation

General purpose

Special purpose

primary marketing

Marketing society

societies
a) Primary agriculture credit society
b) Farmer service society
c) Lamps /
CO- OPERATIVE MARKETING STRUCTUQE:
The co- operative marketing structure in Karnataka consists 2~tier. At base
there are primary marketing societies compromising of agricultural purchases and
sale and production and sale societies. Their area of operation roughly corresponds
to produce co-operative marketing society. Such societies may either deal in single
commodity or in many commodities together. These societies collect, grade,
standardize and make arrangements for sale of produce of their members and also
advances loans to members against goods produced. In Karnataka there are 3
federal institutions, which have occupied a strategic position in over all structure.
They are:
l. Karnataka state co- operative marketing federation.

2. Central areca nut marketing and processing co-operative limited.

3. Karnataka seeds co- operative marketing federation limited.
Thus, co- operative in Karnataka are successful in their functioning
and area obtaining more than 40% of market surplus in the state.
OBJECTIVES:Co-operative marketing of agricultural produce is necessary not only for
stabilizing marketing condition by means of orderly and regulated of commodities
but also for improving bargaining power. The other main objectives are
l) To sell the member product directly in the best market and in a state which
attract best price.
2) To help the members to produce the best product and those which are in
demand.
3) To give fair Weight.
4) To grade the produce such that best price is obtained for all qualities to the
advantage of growers.
5) To handle crop cleanly Without damage or Waste in a Way that will increase, not
decrease its value.
6) To provide for fair trading practices.
7) By providing on fair terms to help the members to finance himself while he is
Waiting for crop to ripe.
8) To give farmer a better understanding of all stages in marketing process.
9) Providing provision for marketing facilities such as storage, processing,
package, financing transport etc ....
10) A development of orderly marketing in orders to reduce cost and adopt
improved marketing methods. L

CHARACTERSTICS:
The modern co-operative are engaged in sale of agricultural goods and
operate it according to basic principles of co-operative. They are
1) Open Membership:
The societys membership is open to any farmer who Wants to sell his
products through the society. Such membership is voluntary. But traders are not to
be members in the society.
2) Democratic Control:
The rules of the society are one man one vote it is one of the important
'principles of the co-operation. Each member gets one vote irrespective of number
of share as he owns in the society. This ensures the fair and best management
organization.
3) Sales at market price.
Societies sell produce of its members at the market price and pays the sales
proceed. to the members after deducting necessary charges.
4) Service motto;Co- operative society is primarily organized to render maximum service to
members and not to maximum profits. Service is the motto of Co-operative
organization.
5) Surplus distribution.The surplus profit is distributed among the members according to amount of
business done by each member with or without the society.
FUNCTIONS:The co-operative marketing societies play an important role in following sphere;
l) Marketing of producer
' The arrange for the sale 'of 'members produce to the best possible
advantage by enabling them to obtain better prices because of sale in bulk

and consequent economy I cost of marketing. .

2) Distribution of fertilizers, seeds and agricultural machineryr
The society is involved in distribution of fertilizers, seeds and
machinery to the farmers foe the better yield in their fields. It is the sole
distributing agency for many states.
3) Grading and pooling of producer
Co~operative undertakes activities in connection with grading and
procuring of produce of members.
A.T.N.C.C., Shimoga 48
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Marketing ofArecanut
4) Provision of storage:~ V
The co~operatives also provide storage facilities to their members by
renting or owing godowns and thereby facilitate grant of advance against
pledge and sale of members produce.
5) Provision of financial assistance:~
They make advance to members on pledge of produce and support
them interim periods between deposits of produce and sale. Against deposits
of goods members receive advances. Members may deposit the produce

directly them or to credit societies, which might store it in society godowns.

6) Other activities:~
> They protect members fromseveral mal practices.
> They reduce waste and stands for fair trading practices.
> They teach farmers business methods and serve them as agencies for
supplying market information.
> They under take foreign and interstate level.
Wealcriess of co~operatives:~
The quantitative achievement for co~operative movement is quite
significant only in some areas, but the movement as a Whole has not been
able to stabilize itself. Some of them are,
> Insufficient management of the society.
> Lack of educated and devoted leadership. '
> Insufficient finance and lack of facilities for processing of produce.
> The overdue of the society has shaken their existence.
A.T.N.C.C., Shimoga 49
Marketing ot`Arecanut
SUGGESTIONS FOR IMPROVEMENT:~,
> Producer~cum~trader not be allowed to become full members.
> Training facilities should be provided for the managerial and other
personnel.
> The finances of the society should be improved by enrolling more
individuals as members.
> Grading and processing should be developed and the produce should
be marked only after grading and processing is done.
> Godovvns should be provided by the Societies.
S'l`ANl)Al{l)IZ1\'l`IQDN:

Standardization provides _the ethical basis for the marketing

transactions. It is the legislation of grades or is supported by legal sanction
and this gives performance to grade over a long period of time.
Standardization indicates establishment of a certain standard, based upon
intrinsic physical properties or qualities of commodity with a vievv to
further sub dividing in the several grades or classes. When We call a
commodity a standard good, We certainly mean that it is of certain quality.
This quality depends upon chemical contents, flavor, size, color, appearance
and length of fiber etc. standards generally serves as basis for future use and
to be effective they must be relatively permanent and must be used by
considerable proportion of sellers and buyers.
In early days standardizationjvas/ looked upon as fundamental in
production. But it has novv been realized standardization would be of great
use in elimination of Waste. In distribution, production, consumption,
standardization is regarded as outstanding note. Thus standardization may
be compulsory Where law or state prescribes certain standards to be
adopted by general E.g: Weight, standard of purity, strength' etc. it may be
voluntary Where trade generally accepts it.
A.T.N.C.C., Shimoga 50
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SUGGESTIONS FOR IMPROVEMENT :~
> Producer~cum~trader not be allowed to become full members.
> Training facilities should be provided for the managerial and other
personnel.
> The finances of the society should be improved by enrolling more
individuals as members.
> Grading and processing should be developed and the produce should
be marked only after grading and processing is done.
> Godowns should be provided by the Societies.
S'!`1\Nll1\l{llIZATIQNI
Standardization provides the ethical basis for the marketing
transactions. It is the legislation of grades or is supported by legal sanction

and this gives performance to grade over a long period of time.

Standardization indicates establishment of a certain standard, based upon
intrinsic physical properties or qualities of commodity with a view to
further sub dividing in the several grades or classes. When We call a
commodity a standard good, We certainly mean that it is of certain quality.
This quality depends upon chemical contents, flavor, size, color, appearance
and length of fiber etc. standards generally serves as basis for future use and
to be effective they must be relatively permanent and must be used by
considerable proportion of sellers and buyers.
In early days standardizationjvas looked upon as fundamental in
production. But it has now been realized standardization would be of great
use in elimination of Waste. In distribution, production, consumption,
standardization is regarded as outstanding note. Thus standardization may
be compulsory Where law or state prescribes certain standards to be
adopted by general E.g: Weight, standard of purity, strength etc. it may be
voluntary Where trade generally accepts it.
A.T.N.C.C., Shimoga 50
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mimi I10UsING=In the distribution of goods Warehouses render to very important

nufacture and hole~sells, with the evolution stora
requirements, different types of Ware houses have emerged. Some of them
services to ma ge
3I`Z~
1) Private Warehouse.
2) Co~operative warehouse.
3) Public Warehouse.
4) Bonded Warehouse.
5) Household Warehouse.
Co~operative Warehouse is thus a combined effort of two or more
private parties to store goods at a certain place. But such type of
warehousing is not found commonly.
In earlier days, the rural banking enquire committee (1950)
emphasized the importance of storage and Warehousing. It suggested
formation of Warehousing development board. The all India rural credit 1
survey (1954) investigates and established National co~operative
development and Warehousing board (NCD and BOARD). This committee
recommended the agricultural produces cooperation act was passed and
brought into force in 1956. Under this act two types of co~operation has
been provided.
1) Central co~operation for Warehousing Was constituted in 1957.
2) State Warehousing co~operation _which was established in 1958
(S.W.C).
(H{1U}ING:Grading is an important marketing function. It is a process of sorting

of individual specimens of given product the standard grade or classes to

which they belong. To grade is to divide goods into lots to which have ~
_A__T.N.c.c., shimoga 51 9
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Marketing of Arecanut
approximately the same characteristics of types, of size or quality or of two
or all of these, grading starts where standardization ends.
Grading may be of two types, fixed grading and variable grading.
Fixed grading refers to sorting out of goods according to the size, quality
and other contents on basis of a fixed standard once lay down. Variable
grading refers to the application of varying standards for grading goods
from year to year.
The presence of grading system makes possible a comparison of
values of different qualities of a product in a singlemarket and of difference
in prices of some goods in different markets. Thus, grade becomes part of
price structure of commodity. '
Benefits of grading:~ ~
1) It increases traders knowledge about products, market value and
thus it tends to reduce sellers risk accepting. .
2) It reduced the gain from social cost adulteration.
3) Grading renders the distribution of goods easier at all stages.
4) Grading makes it possible to sell by sample and description without
the need personnel inspection. i y
/
A.T.N.C.C., Shimoga 52

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Marketing of Arecanut
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A.T.N.C.C., Shimog
53
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Marketing of`Arecanut
ANALYSIS 0F THE SU RVEY: .
TUMCOS is the good reputation in Whole market. According to the
survey, majority of cu1tivators i.e., mainly villages sell their produce
through TUMCOS.
Through there is tough competition in the market, the TUMCOS
acquires about 7-5%of total sales in the market of arecanut in Channagiri.
The following graph shows the total sales of market of arecanut.
"""`A'""_'_ "Wm ' ' ,

, Sales 5
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i f `-25: ~2 1* `\

L9

i___m_i_,___,__,W... _ it i _,dc to i MW!

From the above graph it is clear that TUMCOS occupies majority of
sales in the market of about 75% and others viz .... agents, Mandy. About
25% of total sales in market. '
\
A.T.N.C.C., Shimoga
Marketing ofArecanut
TABLE: l
CULTIVATORS ANNUAL INCOME

_ ANNUAL INCOME (IN Rs; N0.0F PERSONS A IN PERCENTAGE

BELOW 25000 _ 4 4
` 25000~50000 l6 A 16
50000400000 A 24 24
100000 AND ABOVE 55 55
ANTOTAL 100 100
A From the above table shows of cultiva
tors distribution according to
their annual income reveals that about56% of 1"
_ 100000 and above P.A. about 24% are h
espondents are having Rs
aving income ranging from
Rs50000 to 100000 P.A. the rest 20% have income below 50000 <
,_;____,___- .__ ,
`!
ANNUAL INCOME
1E
_ so -

~e~*

A 1

50 _J ~ __ Y '_ "" "` '"" - >-~- -_... _ `__ I

40 _, _1,_ __"` f _
30 " ~-A ._1E_ __1` _ `
20

10

in A vA._,

5, E,,1 is 1

_ ANNUAL INCOME

"` "H-~_.__`_v___ _ _
QQ Q `1~~~~< .`,1 A ,`__ _`_ __
GQ obgo oQ o*< A

<29 <96 0 gb
(3 QQQ j
f 5
I
___.,_____,_|
A.T.N.C.C., Shimoga
Z
Marketing ofArecanut
TABLE: 2
CULTIVATORS LAND HOLDING (IN ACRES)
AREAUN ACRE) NO QF PERSONS IN%
BLoW5 46 46%
lO~l\/lay 26 2.6%
15~o1 A l8 18%
l5&ABOVE lO 10%
TOTAL l OO l 00%
The above table shows 46% of cultivators are having the land holding
less than 5 acres about 26% owns 5~l0 acres remaining 28% of more than
10 acres of land holding Where arecanut is cultivated. Majority of
cultivators own limited land but there is a good yield in land. They mainly
middle class people. So, the majority of respondents are middle class
according to the survey.
1 LAND (IN ACRE) 1
5
I
l ,_ _ W. __ Y
1.

I 4 P ~ rf BELow5
l`

1,.

1 .. . este 10

'<i \ % a #me

l
ie\..
E

fi

1 ~l\l
Q

.ene F 15&ABOVE 1

l.A
"" V

! `.... uw :jj " nl

E
l__Y__ ,vu __,___~_, ._., _ __n-._-_ ...__.~ .W ~ _..__-._.~.,, __-...
/
A 'T \T ri rw c~11_':___ L

if
@~._-,_
Marketing of Arecanut
FINIDINGSZ _
The survey conducted about the marketing of arecanut has revealed
that it is_ now Gaining commercial importance and momentum. in the
market.
Cn the basis of the survey the following conclusions can be drawn.
l) Though there is a tough competition in the market, the TUMCOS

acquires a huge market share in arecanut sales. The competitors are

commission agents, mandis etc.
2) The important findings that the cultivators who sell their produce
are transacting with TUMCOS from many years. The majority of the
respondents of the survey were selling their produce to TUMCOS
for lO~25 years.
3) The majority of respondents of the survey had an annual income of
about Rs. l,O0,000 and more. The reason is that the price of areca
nut is high.
4) The major part of cultivators had small land holdings of about l~5
acres. Although, the holdings are small, the yield is very high in this
region.
5) TUMCGS is at society with diversified activities. They are not only
involved in trade but also provide customer service.
6) The cultivators this Taluk prepare mainly Rashi this type has the
highest price compared to all other type of arecanut in the market.
7) The selling centre for marketing the arecanut produced by the
cultivators is TUMCOS or mandis. /`
8) The immediate payment after sale is provided to the cultivators by
TUMCOS i.e., lday. Because of the immediate payment, the
cultivators are satisfied.
9) About 75% of respondents are satisfied with the Working of
TUMCOS. This is because of efficient management, excellent staff
/
A.T.N.C.C., Shimoga 62
_ Marketing of Arecanut
and continuous service for its members. Today, TUMCOS has very

good reputation in the market.

10) p In the course of the survey, the respondents had some suggestionsgto
if TUMCOS Theyare

V I U if

~
a. Customer service to be improved.
b. Produce taken for sale should be sold in the same day or any
day as requested by the farmer.
c. More improvements is hold be made in storage and
transportation section.
d. Open educationinstitutions and Hospitals.
1 1) The cultivators who respondents of the survey expected the market
rate of areca nut in 10,000 and above.
12) According to the survey, the cultivators mainly mentioned kole roga
disease as the most affecting disease to the crop.
13) Majority of the respondents have their own mode of transportation
for arecanut produce.
ll{0BLlMSI
The cultivators and purchasers of arecanut have many problems in
~marketing, processingand financing. Here are some problems summed up.
They are:
1) Price fluctuation!
The price of arecanut varies Widely from market to market and even
in the same market. Some of the main reasons for the fluctuation of areca
nut prices are
a) Determination of quality has been partly responsible for
obtaining higher or lower prices.
b) The government has control over the market and growers and

purchasers are not Well organized. So, price variations are not
controlled which affects the market adversely.
A.T.N.C.C., Shimoga 63
,='
Il
Marketing of Arecanut
c) Banning gutka covers is one of the main reasons for price
flucations. They have adversely affected the market. The volume
of sales of arecanut has decreased automatically. So, the growers
areinot ableto get reasonable price for their produce.
d) The over production of arecanut has its impact of prices.
Gradually the prices come down because of abundance of stock in
the market. Thus, it hampers the income of cultivators of
arecanut indirectly.
e) Taxation charged on arecanut purchasing has its effect on
market. The merchant has to pay on the purchase of arecanut.
This is called sales taX. The merchants consider these high. So,
this causes price fluctuation in the market
2.) Market information: '
Success in the business depends upon availability of timely, correct
information etc. on the basis of adequate information a right decision can
be taken regarding what to produce, howimuch to produce, where to sell
and how much to sell etc ..... .
The arecanut growers and purchasers often lack information.
Sometimes, they are not aware of market situation because of these
merchants, agents and brokers cheat the growers.
3) Standardization and grading;

There is no proper standardization and grading facilities in the

market. The growers are given low rates for their produce because of poor
grading and standardization
4) Lack of alternative use! .
There is a delay in finding out an alternative use for the area nut so
that it provides high rates for the produce. ,
A.T.N.C.C., Shimoga 54