PRAKASH, T NVIJAYA KUMAR, B S2017-06-092017-06-092009-07-10TH-9466http://krishikosh.egranth.ac.in/handle/1/5810018957Arecanut an important traditional commercial crop of India. In spite, the value addition in arecanut is not up to the expectations so far. Hence, an attempt was made to study the value chain in arecanut with a business management perspective, by focusing on Shimoga (for red boiled type) and Dakshina Kannada districts (for white chali type) in Karnataka. A sample of 60 farmers, 60 market intermediaries, 40 beeda shops and 06 cooperatives were selected for the study. The data was pertaining for the year 2007-08. Analysis was done by employing the Multiple Regression, Lorenz curve, Hirschman’s Index, Gini Ratio, Growth Rate, Instability Index and other relevant techniques. The study highlighted some disquieting features in value chain management of arecanut in Karnataka. Most of the value added branded arecanut products especially from RBT contain tobacco as main ingredients, which are manufactured mainly from outside the Karnataka. The study also highlighted a high growth rate in import compared to export of arecanut products in post liberalization period. Study came out with a cost estimation of preparing one Kilo gram of Pan masala products of arecanut around Rs.550 and Rs.1046 for products with tobacco. Total return from one kilogram of pan masala products was Rs.724 and Rs.1482 for products having tobacco. This highlights that small beeda shops are getting a good return in the value chain management of arecanut in Karnataka. The study showed that the exports grew at 20 per cent rate where as import at a whopping 33 per cent rate during this period. Keeping the above results in view the study came out with the policy recommendations to create a separate areca value chain zone, strengthening cooperatives like CAMPCO to undertake more value added products, establishing vertical integration and modernization of retail beeda shops and to make use of the opportunities under trade liberalization to produce and export of socially accepted areca products having nutraceutical properties. The study strongly recommended the curbing of the illegal import of areca products to India.ennullThesis