Case Study

BUSINESS PROJECT
Detailed case study on ‘Areca Cultivation’
Name: Akshay A Samanth

Class: 11 C
Roll no: 11
Subject: Business Studies
Submitted to: Tr. Saraswathi
ACKNOWLEDGMENT:
I extend my sincere gratitude to Principal Jessy Andrews for her exceptional
leadership and unwavering support. Her guidance has been instrumental in
shaping my project journey. I am deeply thankful for her dedication to fostering
an environment where innovative projects can thrive. I would also like to
express my heartfelt appreciation to Teacher Saraswathi for her invaluable
guidance and support throughout our project work. Her insights and
encouragement have played a crucial role in our project's success. Thank you
both for your continuous support and for being exceptional mentors in both
academics and project endeavors.
I'm deeply thankful to Mr. Prasanth Pai Ambagilu, a dealer in coconut and areca
nuts, for sharing his expertise on areca nut pricing and demand. His insights
have significantly enhanced my understanding, contributing to the success of
my project.
CERTIFICATE
This is to certify that Master has

satisfactorily completed his project in the subject on
the topic during the Academic
Year 2023-24.
Date:
Signature of Examiner signature of principle
INDEX
S.No TOPIC
1. All About Areca Cultivation
2. Seasonality, Harvest, and Processing
3. Demand and Supply
4. Market place
5. Market price of Areca nut
6. Market price Determiner
7. Other Byproducts from Areca cultivation
8. Student reflection
9. Conclusion
10. Appendix
11. Bibliography
Introduction to Areca nut:
Areca nut, locally known as betel nut, grows well in warm and humid climates,
predominantly in Southeast Asia and parts of India. Cultivated in well-drained
soils, this tropical crop plays a vital role in agriculture. Areca nuts are harvested
from areca palm (Fig.1) during the harvest seasons. Widely used in traditional
ceremonies, it's also an essential ingredient in herbal remedies, toothpaste, and
dyes and is mainly eaten with bettle leaves. The nut's versatility extends to its
role in rural economies, making it a significant agricultural commodity in
regions with favorable weather conditions.
Seasonality, Harvesting, and Processing of Areca Nut:

Generally, a 3 – 5 year-old areca palm starts flowering and later gives ripened
areca fruits every 4 to 5 months. This cycle of flowering and ripening areca fruit
is continuous throughout the year unless there is a pest attack or any damage
due to natural calamity or weather conditions.
Farmers harvest areca fruit once it turns orange-yellow (completely ripened)
(Fig.2) or greenish-yellow (partially ripened) (Fig.3) areca fruit based on the
season/climate or the method of processing they opt for.
Ripen areca fruits can be directly sold soon after the harvest or else once the
ripened ones naturally fall from the areca palm. Usually during the normal
winter day in Udupi - Mangalore regions, the whole areca fruits are left to dry in
the sun for 42-48 days (Fig.4), when these fruits are properly dry and crisp they
are dehusked and the kernel or areca nut inside is sold based on their quality and
size. Some farmers harvest and dehusk the areca fruit that is partially
ripening(greenish-yellow) these kernels are boiled in an alkaline solution
(mixture of calcium oxide with other ingredients like various tree barks) (Fig.6)
for an hour to remove the bitterness from the nuts and later leave it to dry under
the sun.
During the monsoon farmers rarely harvest any fruit, during this time farmers
put the required fertilizers for the palm and spray pesticides and other medicine
on the top part of the palm to prevent various diseases like Yellow leaf disease
(YLD), Anabe roga also known as foot rot (caused due to fungal effect), and so
on.
The production of areca fruit is less in the monsoon season due to heavy rain
spoils the flowers from pollination.
Demand and Supply during harvest and non-harvest
season:
The demand for the areca nut which is from the previous season has constant
demand throughout the year. There is very minimal variation in demand for the
old stock. Farmers look for a slight hike in demand to sell their stock. There is a
bit more demand during the rainy season. Demand for new stock is lower than
for old stock. Hence demand and supply for areca nut remain almost the same
with minimal changes during harvest and non-harvest seasons.
Market place:
Some farmers sell orange-yellowish ripened areca fruit to local kiosk/street
vendors in small quantities, where the shopkeepers sell them with beetle leaves.
Whereas farmers generally sell the wholly dried areca fruit or dried kernel or
processed areca nut to big dealers or traders in large quantities. Farmers make a
comparative study on market price before selling.
Market Price:
We can understand the pricing of acrea fruit or areca nut easily by making the
following divisions:
i. The price for ripened areca fruit, for these the demand, is very low in the
market and the farmers sell this to the local kiosk/pan stall in less quantity,
maybe 100 to max 300 areca fruits. Here areca fruits are sold based on
individual units. A small or medium orange-yellowish ripened areca fruit
is charged Rs. 2 per fruit and the large ones are charged Rs. 3 per fruit.
Farmers need to sell immediately after harvest or within the next 2 days
because ripened areca fruits start to get rotten and the price for such is less
compared to the fresh ones.
ii. Price for dried areca nut or white variety, dried areca nut resides inside the
dried areca fruit, once it is peeled off we get dried areca nut. Later based
on quality
they are categorized into different classes or grades, the 1 quality is
known as 1st Class (brownish woody nut with white top), the second
grade is locally known as Bet, and 3 quality is called Koka (their black
and small nuts) locally. They're sold based on quality/kg. The 1st class is
sold for Rs 390 – Rs. 400 per kg, 2nd class or Bet for Rs. 300 - Rs. 310
per kg, and last class for Rs. 170 to Rs. 190 per kg.
iii. Price for processed areca nut or red variety (Fig 7), these nuts have a high
price in the market they cost Rs. 420 – Rs. 450 based on the quality and
age.
Market Price Determiner

The price of areca nut is determined by various traders in the market those who
deal in areca nut and other commodities. The price determined by the
Dakishana Kannada market or Mangalore mandi is also similar to the Udupi
mandi's price with slight variation.
Other Byproducts of Areca fruit:

Areca cultivation gives many byproducts other than areca fruits. The dry areca
palm leaves hard part is used in making biodegradable plates and bowls (Fig 8
and Fig.9). The orange-yellowish husk which is the residual of dehusked
ripened fruits is used to make dye in industries. The dry husk (Fig.10) has good
water-holding capacity used in concrete roads, other construction activities, and
gardening. Areca husk is prominently used in the leather industry for the
tanning process. Farmers cut the areca pod (Fig.11) which contains the flower
before the pod opens and is sold in the market as there is high demand due to
traditional usage in rituals, farmers sell these pods on a small scale.
Student Reflection:
During my project on areca cultivation, I discovered so much fascinating
information. One of the interesting things was learning about the different ways
areca nut can be processed, like drying it in the sun or fermenting it. Each
method changes the taste and quality. Also, I found out that the price of an areca
nut can vary a lot depending on its type. Some are more expensive because
they're bigger or taste better. Exploring these differences made me realize how
important areca nut is in different industries and how pricing affects its value in
the market. Besides, I learned about other products from areca cultivation, like
using its leaves to make eco-friendly plates and cups. It's amazing how much
areca cultivation contributes to both the economy and the environment. Overall
I've learned so much about Areca cultivation.
Conclusion:
Areca cultivation is profitable for a farmer because its price and output of yield
are better than other Perennial crops. Farmers can make a good amount of profit
after deducting the net expenses. Maintain cost is less compared to another
perennial crop. Has there new variety of areca palm, farmers able to decide the
best variety of palm for their region and as per suitability of soil and other
factors.
APPENDIX:
Fig.1 Fig.2
Fig.3 Fig.4
Fig.5 Fig.6
Fig.7 Fig.8
Fig.9 Fig.10
Fig.11
Bibliography:
Mr. Prasanth Pai for first-hand information about the price and demand of areca
nut.
https://images.google.com
www.eagri.org
Bibliography:
Mr. Prasanth Pai for first-hand information about the price and demand of areca
nut.
https://images.google.com
www.eagri.org

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BUSINESS PROJECT

Detailed case study on ‘Areca Cultivation’

Name: Akshay A Samanth

This is to certify that Master has

Signature of Examiner signature of principle

Seasonality, Harvesting, and Processing of Areca Nut:

Market Price Determiner

Other Byproducts of Areca fruit:

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