By: Eoghan Olkeriil Ngirudelsang
KOROR, Palau — A shortage of betel nuts (areca palm nuts), one of Palau’s most sought-after commodities after fuel, is driving up prices and stirring public frustration as supply falls short of growing demand.
Heavy rains over the past eight to nine months have led to what farmers are calling a “betel nut drought,” resulting in smaller harvests and fewer nuts reaching local markets. As prices rise, many Palauans are urging lawmakers to restrict exports, particularly to Guam, to ensure local supply.
Social media posts have called on Congress to ban exports altogether. “This should be illegal,” a woman in her 50s complained as she sorted through small bags of betel nuts at a shop in Koror’s Medalaii neighborhood. “Selling such small betel nuts for $2 and only seven pieces.” Despite her frustration, she still bought two bags before leaving.
Currently, a small bag of betel nuts sells for $2, containing six to eight pieces depending on size.
Store operators say they buy betel nuts for 25 cents apiece from local suppliers and resell them in small plastic bags. “We make about 25 to 50 cents profit per bag,” said Bilal, a Bangladeshi store owner in Malakal. He said he recently bought 3,000 good-sized nuts from a local seller for $750.
Suppliers say most of the nuts come from Babeldaob states such as Ngiwal, Ngarchelong and Airai. When good-sized nuts are available, Bilal said his shop can sell 1,500 nuts — around 250 bags — in a single day.
The strong demand has also fueled thefts. Farmers say stealing has become a daily problem in both Koror and Babeldaob. Some locals accuse Bangladeshi workers of taking the nuts, while Bangladeshi storekeepers say it is often Palauans who steal or resell stolen nuts.
“I couldn’t leave for work this morning because my grandma told me to stay and watch the house and the betel nut trees from Bangla thieves,” said a 19-year-old woman.
Samor, a Bangladeshi caretaker of one of Palau’s largest betel nut farms, said most thefts he sees are committed by locals. “Almost every day we have some stolen,” he said.
Other shopkeepers describe a thriving but costly trade. Akhtar, who runs a store in Medalaii, said he buys 10 nuts for $2 and repackages them into smaller bags. On good days, his store sells between 100 and 200 bags, with many of his recent supplies coming from Airai.
Store owners sometimes share supplies to meet demand. A cashier at Lurs store in Ngerkesoal said their stock is shared with another store in Airai and DH store.
The local supply shortage has been worsened by buyers who export nuts to Guam, where a $2 bag sells for $7 or more. Betel nut, traditionally chewed in Palau and Yap, has grown in popularity across Micronesia in recent decades. In the Marshall Islands, each nut can sell for up to $1.75.
For now, Palauans continue to pay rising prices for smaller nuts — while calling for action to protect what many consider an essential part of daily life.