Price Rise Caused by Disruption of Areca Nut Exports to India

The wholesale price of areca nut in India increased by +32.39% to 5.84 USD/KG in W2 December 2021. Although India is the top producer of areca nuts, the high domestic demand for areca nuts has forced India to import areca nuts from Myanmar, Sri Lanka, and Indonesia. However, due to the political situation in Myanmar which slowed down the export process and the smuggling of substandard areca nuts from Sri Lanka and Indonesia which affected the businesses of local traders, supply was limited and triggered price increases in the Indian market.