PORT MORESBY (THE NATIONAL) —Betel nut has the potential to earn more than K4 billion (US$969 million) for the Papua New Guinea economy if it is properly researched, says a World Bank official.
Senior agriculture specialist for PNG Allan Tobalbal Oliver said: “Betel nut is a major part of our informal sector, and prior to the Coronavirus period, the informal sector accounted for K12.5 million (US$3 million) in the country’s economy.”
An economic update on unlocking the potential of agriculture in PNG was released in Port Moresby.
The World Bank was asked whether there was a need for betel nut to be regulated or institutionalised under the Agriculture and Livestock Department, just like cash crops such as cocoa, coffee and cocoa due to its potential to control the flow of money in the country.
Oliver said: “You don’t want to tighten too much on regulations given the informal sector approach.
“You want to allow businesses to operate and to do things harmoniously.
“But yes, we have to actually dig into it, and make a separate study on betel nut because it also affects the Consumer Price Index (CPI) in PNG and is creating informal jobs for the people.”
The betel nut trade depends on seasons.
It can be sold at the local markets for between K30(US$7.27) and K100 (US$24) when the fruit is in season.
Then it can go up to between K500 (US$121) and K1,000 (US4242) for a 10 kilogramme bag when the supply dwindles.
World Bank senior economist for PNG Reshika Singh said: “Betel nut is very important in PNG and a lot of people rely on it.
“But we also have to see the ability to export.
“When you want to export, there are other factors that come into play.
“You get foreign exchange for that country.
“An example is coffee which has a lot of demand outside the country,” Sing said …. PACNEWS