Chapter 1IntroductionThe 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.OriginAreca 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 : PlantaeSubphylum : FanerogamaeDivision :
AngiospermsClass : MonocotyledonsSeries : CalicinOrder :
PalmaeFamily : ArecaceacGenes : ArecaSpecies : 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 AsiaCountryAreca
(in hectare) Production (in tons)India 222800 248800Bangladesh
105800 98530Srilanka 8200 68500Malaysia 77506450
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.
CultivationArecanut 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 UsesAreca 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 are1. Areca vestiaria.2.
Cyrtoostachlys lakka.3. Iriareta SP4. Pigafetta filaris.5. 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.'BotanyThe 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-2PRODUCT PROFILE ORIGIN AND HISTORY TYPES OF ARECANUT
HARVESTING AND PROCESSING MARKETING OF ARECANUT
INTRODUCTION-The 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 HISTORYThe palm is widely cultivated in the tropical
countries where climatic conditions are congenial to its growth.
Its cultivation is said to date back to Pre- Christian 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 ARECANUTAreca nut
produced in India can be classified broadly under three heads,
namely. 1. Raw or Green2. Sun- dried3. BoiledRaw 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 orgrades 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. PhetonB. ApiC. SarakuD. RajaluThese 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. BETTEA. ChikniB. EdiC. BetteThese are tenders Whole
nuts, which are boiled Without slicing.3. GOTUThe Whole boiled
fully matured nut is GOTU4. CHALIThese are matured ripe nuts, which
are sun- dried and husked.5. CHURThese 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.HARVESTINGThe
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 tighta 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 seedling7. 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 ARECANUTAfter 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 isin practice.c)
In malnad, whole or cut boiled nuts have been vague.The following
are some of the Varieties of the processing the nuts formarketing.
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 marketc) 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 PRODUCEIn 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 AREANUTThe
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 price2) Whole sale market price3) Retail
market priceForm 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-3SOCIETY 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 ofarecanut extents to the area of Channagiri Taluk. But
the marketing activity has been extended to whole IndiaOBJECTEVES
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:ManagementExecutive committee Staff committeePresident
SecretaryTen directors Accountant4 Government nominee Sales
Manager1 bank nominee Cashier2 First grade clerks2 Second grade
clerks1 In charge clerks1 Peon1Watch man
MEMBERSIIIP AND SHARE CAPITAL:-The members are grouped in to two
categories.Membership: A class: administrative members having
arecanutPlantations:B class: state governmentC 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
RS1DEPUSITS: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 2013-14ArecanutSales (In Rs)Net
Profit ( In Rs)
11,48,57,600,0015,37,45,000
TABLE-2 TABLE SHOWING PROFIT OF 6 YEARSYearAmount (In Rs)
2004-058,097,000.00
2005-0614,20,08,000.00
2006-0715,09,50,000.00
2007-0816,02,60,000.00
2008-0916,04,60,000.00
2009-1016,58,50,000.00
2011-1210,68,000,00
2012-1313,93,000.00
2013-1415,37,45,000.00
CHAPTER-4CO-OPERATION MARKETING INTRODUCTION OBJECTIVES
CHARECTERSTICS AND FUNCTIONS GRADING AND WAREHOUSING
CO-OPERATIVE MOVEMENT IN INDIAThe 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 thecentral act of 1912.The act of 1919
gave great stimulus to the movement. Its success wasmeasured more
by its quantity than by its quality.Firstly, the co-operative
movement in India didnt spring up from thePeople. It was initiated
by government resolution with a view to solve theproblem 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 ofCo-operative. credit societies but extended till
1912. The act enabled the co- operative 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 co- operative 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 structureNational agriculture
co~operativeMarketingState co-operative State co-operative
specialMarketing commodity marketingDistrict /central
co-operativemarketing federationGeneral purpose Special
purposeprimary marketing Marketing societysocieties
a) Primary agriculture credit societyb) Farmer service societyc)
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 functioningand 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 are1) 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
possibleadvantage by enabling them to obtain better prices because
of sale in bulkand consequent economy I cost of marketing. .2)
Distribution of fertilizers, seeds and agricultural machineryrThe
society is involved in distribution of fertilizers, seeds
andmachinery to the farmers foe the better yield in their fields.
It is the soledistributing agency for many states.3) Grading and
pooling of producerCo~operative undertakes activities in connection
with grading andprocuring of produce of members.A.T.N.C.C., Shimoga
48
33,i,,t~zittMarketing ofArecanut4) Provision of storage:~ VThe
co~operatives also provide storage facilities to their members
byrenting or owing godowns and thereby facilitate grant of advance
againstpledge and sale of members produce.5) Provision of financial
assistance:~They make advance to members on pledge of produce and
supportthem interim periods between deposits of produce and sale.
Against depositsof goods members receive advances. Members may
deposit the producedirectly 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 forsupplying market
information.> They under take foreign and interstate
level.Wealcriess of co~operatives:~The quantitative achievement for
co~operative movement is quitesignificant only in some areas, but
the movement as a Whole has not beenable 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
49Marketing ot`ArecanutSUGGESTIONS FOR IMPROVEMENT:~,>
Producer~cum~trader not be allowed to become full members.>
Training facilities should be provided for the managerial and
otherpersonnel.> The finances of the society should be improved
by enrolling moreindividuals as members.> Grading and processing
should be developed and the produce shouldbe 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 marketingtransactions. It is the
legislation of grades or is supported by legal sanctionand this
gives performance to grade over a long period of
time.Standardization indicates establishment of a certain standard,
based uponintrinsic physical properties or qualities of commodity
with a vievv tofurther sub dividing in the several grades or
classes. When We call acommodity a standard good, We certainly mean
that it is of certain quality.This quality depends upon chemical
contents, flavor, size, color, appearanceand length of fiber etc.
standards generally serves as basis for future use andto be
effective they must be relatively permanent and must be used
byconsiderable proportion of sellers and buyers.In early days
standardizationjvas/ looked upon as fundamental inproduction. But
it has novv been realized standardization would be of greatuse in
elimination of Waste. In distribution, production,
consumption,standardization is regarded as outstanding note. Thus
standardization maybe compulsory Where law or state prescribes
certain standards to beadopted by general E.g: Weight, standard of
purity, strength' etc. it may bevoluntary Where trade generally
accepts it.A.T.N.C.C., Shimoga 50. li]E6i'r1~ 1aA~ Training
facilities should be provided for the managerial and
otherpersonnel.> The finances of the society should be improved
by enrolling moreindividuals as members.> Grading and processing
should be developed and the produce shouldbe marked only after
grading and processing is done.> Godowns should be provided by
the Societies.S'!`1\Nll1\l{llIZATIQNIStandardization provides the
ethical basis for the marketingtransactions. It is the legislation
of grades or is supported by legal sanctionand this gives
performance to grade over a long period of time.Standardization
indicates establishment of a certain standard, based uponintrinsic
physical properties or qualities of commodity with a view tofurther
sub dividing in the several grades or classes. When We call
acommodity a standard good, We certainly mean that it is of certain
quality.This quality depends upon chemical contents, flavor, size,
color, appearanceand length of fiber etc. standards generally
serves as basis for future use andto be effective they must be
relatively permanent and must be used byconsiderable proportion of
sellers and buyers.In early days standardizationjvas looked upon as
fundamental inproduction. But it has now been realized
standardization would be of greatuse in elimination of Waste. In
distribution, production, consumption,standardization is regarded
as outstanding note. Thus standardization maybe compulsory Where
law or state prescribes certain standards to beadopted by general
E.g: Weight, standard of purity, strength etc. it may bevoluntary
Where trade generally accepts it.A.T.N.C.C., Shimoga 50_$1 iiis
lrEs isat E; it$"tQi C_4QQzX\ Ei1?~ lA 2 Q12 5 fi5, Qe :atii it g$1
1 > 5 1sae3% A iii zu\;xiii ii1 >&1KL, , sMia' i it _i s
1.rits r U_ tit 1 _\,\r_Z%5% (1 3_, Ei5 ig' iii.tt it yr, i _ .~s13
` i_Qi,.,5:I_ Mof A Eii?siis _iii 11 it at ,1 bl; ,r ,*in i1' .it
mi 11 ,,~il Yi, IM#_mvf asa;i t ' il Q Si t= _?:2 ;~>,_f\xv
vii?is :Y i< arf, _ (itil,, Q,-vi'**rr;:str ' W,