The price of areca nut touched the Rs 50,000 mark on Saturday, with the price per quintal touching Rs 50,200 at the areca market.
The price has seen a meteoric rise from Rs 25,000 since the middle of March. One major reason for the increase is said to be the hike in import duty imposed on areca nut by the Centre. Pan masala manufacturers are likely to store areca nut, anticipating that the tax on it may increase with the implementation of the Goods and Services Tax by July. This speculation may also have led to sudden spurt in prices, say industry insiders.