Import price of arecanut hiked by Rs 100, to help domestic market maintain stability

There has been over 100 per cent growth in the import of arecanut, both in terms of quantity and value during the current financial year. Considering the increase in the import of arecanut and the cost of cultivation, the cooperatives in the arecanut sector, including the Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco) Ltd, were seeking an increase in the MIP. Eventually, the Centre has increased the minimum price (MIP) for the import of arecanut by ₹100 per kg.

 The Centre hiked the minimum import price of arecanut from Rs 251 a kg to Rs 351 a kg to arrest falling prices in the domestic market. The Directorate General of Foreign Trade (DGFT), Department of Commerce, under the Union Ministry of Commerce and Industry issued a notification to this effect by making an amendment to the import policy.

“The minimum import price imposed on tariff lines under whole, split, ground and other categories of arecanuts is revised from Rs 251 a kg to Rs 351 a kg. The import policy of 'supari' (betelnut product) is revised from ‘free’ to ‘prohibited’ and import shall be free if CIF (cost, insurance and freight) value is Rs 351 or above per kg. The given conditions shall not be applicable for imports by 100 per cent export-oriented units and units in the Special Economic Zones subject to the condition that no DTA (domestic tariff area) sale is allowed," the notification said.  

The hike is likely to help the domestic market maintain stability. Earlier, arecanut growers demanded the government increase the minimum import price to protest domestic growers. The Union Ministry of Commerce last week informed Parliament that compared to last financial year, import of arecanut increased in this fiscal in India and a total of 61,450 tonne arecanut was imported till November end of 2022-23 fiscal.

 Minister for State for Commerce Anupriya Patel said in Parliament that arecanut was imported from Canada, Indonesia, Maldives, Myanmar, Singapore, Sri Lanka, Tanzania, United Arab Emirates, Vietnam and Nepal. However, the Minister said no arecanut was imported from Bhutan for the past four years.

 Meanwhile, the Mangaluru-based Central Arecanut and Cocoa Marketing and Processing Cooperative Limited (CAMPCO) has welcomed the Union government's decision to increase the minimum import price (MIP) of arecanut from Rs 251 to Rs 351. CAMPCO President A Kishore Kumar Kodgi said the entire arecanut fraternity is grateful to the Centre for the decision.

 Based on repeated representations from CAMPCO and other like-minded cooperatives to the Agriculture and Commerce ministries and Prime Minister Narendra Modi, the Centre has decided to revise the MIP to stabilise the domestic market, he said. In the recently concluded CAMPCO golden jubilee celebrations, Kodgi had submitted a memorandum to Union Minister for Home and Cooperation Amit Shah pressing for the arecanut farmers' demand. Union Minister of State for Agriculture and Farmers' Welfare Shobha Karandlaje had also announced recently that her ministry recommended for upward revision of MIP of arecanut to the Ministry of Commerce.

 CAMPCO wholeheartedly thanks PM Modi, all the central and state ministers and leaders of cooperatives for their efforts to revise the MIP of arecanut to Rs 351, Kodgi told mediapersons in the presence of CAMPCO vice president K Shankarnarayana Bhat, Managing Director H M Krishna Kumar and other directors.