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1 Skin diseases like eczema and scabies can also cause red itchy palms. 2  Bumps and exfoliation of palmer skin is observed in these conditions. 3  Bacterial and fungal infection of palms can be a reason for itchy palms. 4  Dry skin of palms can be a reason for itchy palms.
Rachis Blight. Also called petiole blight, this fungal disease has similar symptoms to the other fungal diseases that can afflict pygmy date palm trees and other palms. Rachis blight causes discolored streaks or lesions on the petioles of older fronds. The petiole is the stalk that connects a leaf to its stem.he fungus affects the tree's leaf blades and petioles and can later cause bud rot. Watch for signs of spots on the leaves of your palm; they begin small and yellow, then grow larger and become brown or black, and sometimes turn grey with a black area surrounding them. It also forms lesions on the petiole and rachis.