Shivamogga, Mar 21: The price of arecanut spiralled by Rs 6,000 per quintal on Monday. With this, the produce, which was trading at Rs 34,000 a quintal last week, is now being sold at Rs 40,000 per quintal.
The price of arecanut was hovering at Rs 25,000 to Rs 26,000 per quintal till February end and crossed Rs 30,000 in the first week of March. The rise in the price has brought cheer to growers, who were fearing that the yield may come down due to scorching heat of summer.
The Union government had agreed to purchase areca grown in several districts of Karnataka, under the market intervention scheme. Areca cooperative socieites were allowed to purchase the produce directly from growers. The purchase price was fixed at Rs 27,000 per quintal (red variety) and Rs 25,100 per quintal of chali variety.