Local traders doing areca nut business in Samdrup Jongkhar are fetching good prices this season. They said due to poor production this time, the price has increased. Areca nut is one of the main cash crops for most farmers in Samdrup Jongkhar.
At Dungkarling in Phuentshogthang Gewog, from harvesting areca nut to transporting it, the traders do all the work.
Some of the traders then take it to exporters based in Samdrup Jongkhar while others sell it directly to India.
A local trader paid Nu 600,000 as an advance for six orchards in Dungkarling. And today he collected 12,700 kilograms of areca nut which will be sold in India.
Traders paid about Nu 50 per kilogram to the growers this time.
“This time the price started at Nu 42. Currently, we pay about Nu 47 to 48 for one kilogram in Samdrup Jongkhar. And when we take it to India, we get Nu 1 to 2 extra,” said Krishna Bahadur Gurung, a trader.
“Initially, I paid Nu 45 and now it has reached to Nu 50,” said another trader, Tashi Tshering.
The growers said the production is poor this time as the district received heavy rainfall during the nut’s flowering season.
This has worried the traders as they might have to take losses since they have made advance payments to several growers.
“Compared to last year, the production has decreased by 30 to 40 per cent. For example, an orchard which produced 100 sacks of the nut last year has produced only 60 to 70 sacks this year. We pay an advance amount for an orchard directly by looking at last year’s production. Without good production, I am running my business at a loss by 30 per cent,” said Krishna Bahadur Gurung.
Areca nut is one of the main sources of income for many villagers of Phuentshogthang, Pemathang, Samrang and Langchenphu Gewogs. The district produces about 500 metric tons of areca nut annually.
Kinley Wangchuk, Samdrup Jongkhar
Edited by Tshering Zam
