July 15
THE price of areca nut jumped to over K6,000 per viss (a viss equals 1.6 kilogrammes) on low inventory, according to the areca nut market.
The prices of areca nuts were estimated at K4,500-5,400 per viss in May. The prices slightly rose to K5,100-6,100 per viss in end-June.
Only the warehouse owners keep the stock of dried areca nuts in their hands. The low inventory pushed up the prices.
Normally, dried betel nuts were primarily exported to India. At the moment, betel nut exports to India have plummeted amid security concerns on the Kalay-Tamu trade route. Consequently, dried areca nut dealers are mainly relying on the domestic market, traders stressed.
Starting from April, China’s demand has made tender areca nut fruit market bustle, hiking the price from K30 to over K60 per piece. Traders are interested in selling tender areca nut fruits rather than dried areca nuts.
Generally, the mature betel nuts are placed on the market after the drying and processing stages. The prevailing price of dried areca nuts is K30 per piece. Meanwhile, the tender areca nut fruit is offered K35 at a minimum exclusive of additional charges for processing. This way, the farm owners focus on the sales of young areca nut fruits.
Myanmar’s areca nut fruit market has become widespread. The commodity depot of areca nut fruits emerged in the producing states and regions (Rakhine, Mon and Kayin states and Taninthayi and Ayeyawady regions). The brokers do a roaring trade with the competitive pricing. The brokers go down to farms and buy areca nut fruits from 17-18-g sized fruits to over 30-g sized fruits.
Earlier, Myanmar harvested only mature areca nut fruits and only the dried areca nuts were delivered to the market. Nonetheless, coronavirus impacts in 2020 and political changes in 2021 hindered some business operations. Therefore, the farm owners expressed a keen interest in the harvest of ripe betel nut fruits on the back of China’s demand with high prices. The market grows this way and farm owners make a handsome profit at present.
Nonetheless, dried betel nut production is likely to drop in future. With the possible foreign market demand receiving, the prices of dried betel nuts are expected to go up, the traders observed. — NN/GNLM
