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,