Arecanut is an important commercial crop of Kerala and is mainly a small farmer's crop. The marketing system of arecanut in Kerala includes primary, secondary and terminal markets. In earlier times trade in arecanut was monopolistic in nature. This has changed since the mid seventies as a result of the formation of Central Arecanut Marketing and Processing Co-operative Ltd (CAMPCO). The establishment of CAMPCO raised the farm price and wholesale price of arecanut with minor fluctuations in Kerala. Arecanut marketing channel involves a number of market intermediaries. Most of the produce passes through village traders, itinerant merchants, private wholesalers, the CAMPCO and the retailers. Lower price spread and better price through CAMPCO to arecanut growers among different marketing channels in Kerala is the most important impact of this co-operative venture. CAMPCO is also involved in the grading of arecanut in scientific manner according to size and quality. All these made arecanut cultivation more remunerative and improved the economic conditions of arecanut farmers.
N. Karunakaran (Wed,) studied this question.
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