The price of areca nuts in Dak Lak Province has experienced a dramatic shift in recent months. After steadily climbing to nearly VND100,000 per kg from mid-October onwards, the price has now suddenly plummeted to just VND20,000-VND60,000 per kg, causing significant anxiety for local farmers and traders.
Specially, Cu Kuin District of Dak Lak Province, recognized as the largest hub for areca nut procurement in the area, has experienced a decline in trading activity. The once vibrant markets for fresh areca nuts are no longer as active as they used to be. Numerous purchasing locations have been compelled to either reduce their operations or cease purchasing altogether due to the excessive inventory of areca nuts still available.
A trader from Cu Kuin District revealed that the abrupt decline in areca prices can be attributed to a temporary halt in purchases from the Chinese market. At present, there is an oversupply of areca, resulting in significant inventory which has consequently led to a decrease in prices.
Data from the Department of Cultivation and Plant Protection of Dak Lak province has shown that the newly cultivated area spans 365 hectares, while the area designated for production covers 586 hectares. The yield for the production area is recorded at 139.41 quintals per hectare. The total areca output for the province in 2023 was estimated to be 8,170 tons.
A representative from the Department of Cultivation and Plant Protection in Dak Lak Province has stated that in 2023, the total area for the cultivation of areca in the province reached 1,358 hectares. Areca is classified as a secondary crop and is not part of the agricultural development plan for the province. At present, the market for areca nuts is unstable, with traders primarily exporting to China through unofficial channels.
Facing these circumstances, the department advised local farmers to exercise caution, refrain from expanding their areca cultivation, and avoid replacing primary crops with areca to mitigate potential risks.