- INTRODUCTION
Fluctuations in agricultural prices are associated with varying lengths of time due to various factors (Reddy et al., 2013:535). There are long-term price variations (cyclical variations), short-term price variations (seasonal variations or intra-year variations), inter-year variations (trend variations), and finally, irregular fluctuations (random variations). Prices may change from week- to- week, from day- to- day, and within a day. Intra-year instability is due to the behaviour of prices seasonally in a year. Inter-year instability means price movements from year- to- year. Long-term instability is related to price behaviour over a period of time. It is well- known that agricultural prices have a tendency to display wider fluctuations.
Rapid and violent fluctuations in agricultural prices have many harmful consequences. For example, steep decline in the price of a particular crop in some year can inflict heavy losses on the growers of that crop. This will reduce their income substantially and dampen their spirits to cultivate the same crop next year. If this happens to be a staple food item of the masses, supply next year will remain considerably below the demand forcing the government to fill the gap by resorting to imports. If, on the other hand, prices of a particular crop soar very high in a particular year, the consumers are likely to suffer. Considering these factors, it becomes necessary to stabilise agricultural prices to safeguard the interest of both producers and consumers.
- REVIEW OF LITERATURE
Das Prafulla (1982) in his study on ‘Progress of CAMPCO and its Impact on Areca nut sector in Karnataka and Kerala’ revealed that the main objective of CAMPCO is to improve the economic condition of areca nut farmers by correcting marketing disabilities. The analysis of the price per unit of areca nut realised by the farmers in the pre-CAMPCO and post-CAMPCO periods depicts that the cooperative marketing channels have offered better price to the areca nut growers. Prakash T. N., Urs Devaraj Shrijay, and Achoth Lalith (1998) in ‘Impacts of C-operative on Market Structure and Prices: A Case of CAMPCO Ltd., Karnataka’, revealed that although CAMPCO is not a dominant buyer of areca nut in the Mangalore market, its purchase can induce a degree of competitiveness in the market. The study revealed that CAMPCO’s performance in the market had a positive impact even in real terms on the price of areca nut. Wader L. K., Bharamgoudar T. D. and Murthy C. (2004) conducted their study on ‘Grading of Areca nut Adopted by CAMPCO, Mangalore’, to analyse the grades and grading methods of areca nut and the characteristics of sub- grades of each main grade, grade-price relationship, and the recovery of each sub-grade of areca nut. The study revealed that higher the size of supari areca nut, more is the superiority. Superior grades received higher prices and lower prices were paid to least superior grade in the study area. Bhat V.V. (2008) analyses ‘Aspects and Prospects in Areca nut Production, Marketing and Value Addition’. The paper focuses on market research, international factors, standardisation, organic cultivation, mixed cropping and diversification, diversion of farmers from areca nut cultivation, health, medicinal uses, by-products, etc. The study suggested using satellite imagery for better estimation of area under production of areca nut. The study also suggested that such initiatives and marketing studies may be commissioned by agencies like CAMPCO and can be released for the benefit of the growers as well as the intermediaries.
- OBECTIVE AND METHODOLOGY
The objective of the present paper is to analyse the role of CAMPCO in areca nut price stabilisation. The study is conducted to analyse the response of areca nut growers towards CAMPCO in Dakshina Kannada district. This study is based on primary data collected through a structured questionnaire schedule having both close- ended and open- ended questions pertaining to the objectives of the study canvassed among the selected areca nut growers in the Dakshina Kannada district during 2017-18. In the present analysis to identify the small, medium, and large farmers, standard deviation was used as discriminate coefficient (Becker, 1957 & 1971). The Chi-square test was computed to find significant association between growers and quantity, frequency, price offered per quintal of areca nut sold, and services offered at CAMPCO.
- DATA ANALYSIS AND FINDINGS
4.1. THE CENTRAL ARECANUT AND COCOA MARKETING AND PROCESSING CO-OPERATIVE LTD. (CAMPCO)
Cooperative marketing societies have been playing a major role in areca nut marketing in Dakshina Kannada district since their inception. The important among these are CAMPCO and MASS. Areca nut prices started falling down since 1970, and in 1973, the market price per quintal of areca nut fell down to Rs. 300. During that time, in order to safeguard the interests of the areca nut growers, especially in Dakshina Kannada district, CAMPCO was established in 1973. When the price areca nut once again started falling down in 2000-01, Mangalore Areca Growers’ Sahakari Sangha (MASS), another cooperative marketing organisation came into existence, exclusively for gowers of Dakshina Kannada district. However, MASS is not given much priority in the study because none of the sample respondents had its membership. Hence, it is clear that both CAMPCO and MASS came into force mainly with the intention of safeguarding areca growers. But, unfortunately, majority of the areca growers remember cooperative societies only when the market price is very low and highly fluctuating.
4.2. STRENGTH AND WEAKNESSES OF CAMPCO
CAMPCO has always been the backbone of areca growers. It is evident from the fact that, when the government thought of banning gutkha as per the Supreme Court’s order, CAMPCO had sent an expert committee before the Central Government and tried to convince the medicinal benefits of areca nut.
In the survey, 54.7 per cent respondents had opined that CAMPCO stabilises the price of areca nut by ensuring minimum support price to the growers. As per the study, 14.7 per cent growers viewed that the price stabilising strategy of CAMPCO is by controlling middlemen and illegal trading, 18.7 per cent revealed that it is by forcing government in policy matters, and 3.3 per cent by finding new avenues of demand. In spite of strong support for CAMPCO in the study region, a few growers were of the view that CAMPCO had failed to stabilise the market price of areca nut over the years. Further, the survey revealed the failure of CAMPCO as areca nut stabiliser. Out of the total respondents, 8.7 per cent areca growers viewed that CAMPCO, due to no hold over market, could not stabilise the market price of areca nut. According to CAMPCO officials, out of the total areca production, only 20 per cent is marketed through CAMPCO and remaining 80 per cent is marketed through private traders. Across growers, there were more respondents among large growers, who viewed that the strategy of CAMPCO for price stabilisation was by purchasing larger quantities of areca nut by ensuring minimum support price, which is estimated at 65.3 per cent. Thus, CAMPCO plays a vital role in the areca nut sector by controlling middlemen and illegal trading. However, a few growers viewed that CAMPCO had failed to stabilise the market price of areca nut over the years.
4.3. DETAILS OF MEMBERSHIP
The study was intended to know the impact of CAMPCO on areca nut growers in the study region. In order to market areca nut at CAMPCO, the growers were required to take its membership.
Figure 1
Membership in CAMPCO
Source: Field Survey.
As shown in Figure, out of the total sample respondents, 242 had taken membership in CAMPCO, which accounted for 80.7 per cent, and 58 were not members, which accounted for 19.3 per cent. Thus, it is clear from the study that majority of the growers were very much aware that CAMPCO has been playing a vital role in areca nut marketing in spite of the tough competition from private traders.
4.4. PERCEPTION REGARDING MEMBERSHIP
As per the data, 36.7 per cent areca growers revealed that they took membership in CAMPCO because it motivated them by providing market for their produce every time. As per the study, 14 per cent growers expressed that CAMPCO safeguards farmers during emergency by ensuring minimum support price, and 28 per cent viewed that they have taken membership in CAMPCO as it is their own organisation meant for the growth of farmers. The Chi-square test was computed to find significant association between growers and reasons for being a member of CAMPCO. It has been found from the test that there is association between landholding and reasons for being a member of CAMPCO at one per cent level of significance. Significantly, there are more respondents among medium growers who revealed that CAMPCO motivates the farmers by always providing a market, which is estimated at 40 per cent.
Further, the survey describes the reasons for not being a member of CAMPCO. As per survey, 6 per cent respondents were of the opinion that CAMPCO does not play a major role in areca nut marketing and that is why they have not taken its membership. As many as 10.7 per cent respondents were unaware about CAMPCO’s role in areca nut marketing, and 4 per cent did not give exact reasons as to why they had not taken the membership of CAMPCO. The Chi-square test was computed to find significant association between growers and reasons for not being a member of CAMPCO. It has been found that there is association between landholding and reasons for not being a member of CAMPCO at one per cent level of significance. Significantly, there were more respondents among small growers, who were not members of CAMPCO because of lack of awareness, which is estimated at 13.3 per cent.
To conclude, many growers had taken membership in CAMPCO as it had motivated them by providing market for their produce every time. In the meantime, as many as 10.7 per cent respondents were unaware of CAMPCO’s role in areca nut marketing.
4.5. QUANTITY, FREQUENCY, PRICE, AND SERVICE OF CAMPCO
In order to ascertain the role of CAMPCO, a major cooperative marketing society for areca nut in the study region, information pertaining to the marketing aspects of CAMPCO was gathered for the year 2017-18. The study intended to know the participation of CAMPCO in areca nut marketing in the study region. Out of the sample respondents, 39.3 per cent had not marketed their areca nut through CAMPCO. The respondents expressed that they had not been attracted by the services of CAMPCO. It also implies that 60.7 per cent had marketed their produce through CAMPCO. The data shows that 76 respondents had sold areca nut up to 500 kg at CAMPCO which accounted for 25.3 per cent, 50 growers had sold above 1500 kg accounting for 16.7 per cent, 32 had sold between 501 to 1000 kg accounting for 10.7 per cent, and 24 had sold between 1001 to 1500 kg accounting for 8 per cent. The Chi-square test had been computed to find significant association between growers and quantity of areca nut sold at CAMPCO. It was found that there is association between landholding and quantity of areca nut sold at CAMPCO at one per cent level of significance. The respondents, who had not sold areca nut to CAMPCO, were highest among small growers estimated at 49.5 per cent out of 105 small growers. At the same time, there were more large growers, who had sold above 1501 kg of areca nut to CAMPCO. Hence, it reveals that large growers are closely associated with CAMPCO. Thus, it is clear from the study that CAMPCO being a cooperative marketing society attracts many growers in the study region. However, as far as the quantity of areca nut sold to CAMPCO is concerned, it is much less. Farmers in the study region had given several reasons for this trend. The main reasons highlighted by the areca growers was lower price offered by CAMPCO compared with private traders, and negligence of small as well as medium growers by CAMPCO.
Out of the survey, 46.7 per cent respondents revealed that they marketed areca nut at CAMPCO up to 5 times, followed by 6.7 per cent respondents as between 5 to 10 times, 6 per cent growers as above 15 times, and 1.3 per cent growers as between 10 to 15 times. The Chi-square test was computed to find significant association between growers and frequency of areca nut sold at CAMPCO. It was found that there is association between landholding and frequency of areca nut sold at CAMPCO at one per cent level of significance. Significantly, there were more respondents among large growers, who marketed areca nut up to 5 times at CAMCO in the study region, which is estimated at 48 per cent. At the same time, there were none among small growers, who had marketed areca nut between 10 to 15 times at CAMPCO. Thus, the important finding of the study is that a very few respondents sold areca nut once in a year, and many growers sold their areca more than one time in a year. The study also found that, higher the frequency of areca nut sold lesser the risk of price fluctuation involved, and vice-versa.
As per survey, 46 per cent respondents received price between Rs. 201 to 250 per kg, 13.3 per cent between Rs. 251 to 300, and 1.3 per cent between Rs.151 to 200 per kg. It was found from the study that a decent price was offered by CAMPCO to majority of the sample respondents in the study region. The Chi-square test was computed to find significant association between growers and price offered per quintal of areca nut at CAMPCO. It was found that there is association between landholding and price offered at CAMPCO at one per cent level of significance. Significantly, there were more respondents among small and medium growers, who had received the price between Rs. 201 to Rs 250 per kg, which is estimated at 46.7 per cent. At the same time, there was no respondent among small growers, who had received the price between Rs. 151 to 200 per kg.
- SUGGESTIONS
- The problem of middlemen should be solved by encouraging co-operative marketing societies like CAMPCO or APMC yard.
- CAMPCO should attract areca growers by extending various services like mobile purchasing units, free transport facility, advance cash payment through Kisan Credit Card, etc.
- CAMPCO, being a major agricultural marketing society, should provide market for important subsidiary crops of the areca nut growers such as pepper, coconut, rubber, etc.
- Farmers should go for inter- and mixed crops for ensuring economic returns during times of price fluctuations of the main crop. The horticulture department and co-operative societies should provide information about the benefits of multiple cropping to the growers from time- to- time.
- Co-operative societies besides providing loans must ensure that growers have proper market and storage facilities in the areas where the areca nut is grown. This would go a long way in fetching remunerative prices to the farmers and avoiding high fluctuation in prices.
- CONCLUSION
In conclusion, the future of areca nut depends upon the qualitative expansion of the consumer base. The role of growers, co-operative societies, and the government is anticipated to provide a solution to frequent price variation, i.e., through the Areca nut Board, price policy, and strengthening the All India Areca nut Growers’ Association.
- REFERENCES
- Agarwal, A.N. (2005). Indian Economy: Problems of Development and Planning, New Delhi: Vishwa Prakashan Publisher.
- Das Prafulla, K. (1982). Progress of CAMPCO and its Impact on Arecanut Sector in Karnataka and Kerala, Arecanut Research and Development, Proceedings of the Silver Jubilee Symposium on Arecanut Research & Development, held a
t CPCRI, Vittal. - Datt, Gaurav & Maharajan, Ashwani (2014). Indian Economy, Ram Nagara, Delhi: S.Chand & Company Pvt. Ltd.
- Bhat, V.V. (2008). Aspects and Prospects in Arecanut Production, Marketing & Value Addition, and Paper Presented in the International Conference on Future of Arecanut held at Karnataka Bank Auditorium, Kodialbail, Mangalore.
- Prakash, T.N., Urs, Devaraj, and Achoth Lalith (1998). Impacts of Co-operative on Market Structure and Prices: A Case of CAMPCO Ltd., Karnataka. Indian Journal of Agricultural Economics, 53(3), 333-343.
Dr. GANARAJA K.
Assistant Professor,
Department of Economics,
SDM College, Ujire
| Ms. PAVITHRA Student, I MA Economics, SDM PG Centre, Ujire |