Arecanut farmers gain competitive prices through auction at Bhavani regulated market 

Auction mechanism boosts arecanut prices for farmers in Bhavani, promoting transparency and higher profits in cultivation.

Arecanut (betelnut) cultivators in the district are now obtaining remunerative prices for their produce, thanks to the auction mechanism introduced at the regulated market in Bhavani.

The nut, commonly chewed with betel leaf and paan, is cultivated across more than 6,500 acres, primarily in areas along Bhavani River, including Ammapettai, Athani, Kallipatti, Gobichettipalayam, Sathyamangalam, and the hilly region of Talavadi. The arecanut harvest season spans from August to April, with the ‘Mohitnagar’ and ‘Inter C Mangala’ varieties accounting for 90% of total production.

Earlier, local traders fixed prices directly in the fields, often leaving farmers unaware of the prevailing market rates. A decline in yield due to intense heat, coupled with the inability to secure competitive prices, had discouraged many from continuing cultivation.

To address this, ICAR – Krishi Vigyan Kendra (KVK), MYRADA, Gobichettipalayam, partnered with the Central Arecanut and Cocoa Marketing and Processing Co-operative Limited (CAMPCO), Mangaluru, to strengthen market linkages. They emphasised the strong demand for arecanut and encouraged farmers to resume and scale up cultivation.

“The area under cultivation has expanded since then, and KVK coordinated with the Erode Marketing Committee, after which procurement began at Varanapuram, seven kilometres from Bhavani,” said P. Alagesan, Head and Senior Scientist at KVK. He stressed that informed farmers, aware of market dynamics and sales channels, were less dependent on intermediaries. “Farmers are increasingly showing interest in arecanut cultivation,” he added.

Auctions began at the Bhavani Regulated Market on December 20, 2024, and are now held every Friday. Arecanut from neighbouring areas such as Vazhapadi and Edappadi in Salem, and the foothills of the Kolli Hills in Namakkal, is also brought to the market. Prior to the auction, the produce is graded, and traders quote prices based on quality. Payments are transferred directly to farmers’ bank accounts within a day, ensuring efficient and transparent transactions.

D. Thiruselvan, a farmer from Karattadipalayam in Gobichettipalayam, who has been cultivating arecanut on his six-acre farm for 25 years, said farmers were now receiving better returns. “We can store our produce at the godown on the market premises and sell it later when prices are favourable,” he said. Instead of selling green (raw) or unprocessed arecanut at lower rates, farmers now process it, removing the husk, and sell it either as chali (dried whole arecanut) or appi (partially dried and cut), which yields higher profits. He also urged authorities to expand procurement to other markets to reduce transport costs for growers.