Lok Sabha Question No. 39 (STARRED), answered on 2017-12-18
Subject: Import Price of Areca Nuts
Ministry: COMMERCE AND INDUSTRY
Asked by: ADVOCATE NARENDRA KESHAV SAWAIKAR

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA STARRED QUESTION NO. 39

## TO BE ANSWERED ON 18 th  DECEMBER, 2017

## IMPORT PRICE OF ARECA NUTS

- *39 .    ADV. NARENDRA KESHAV SAWAIKAR:

Will the Minister of COMMERCE & INDUSTRY ( वा ͨणÏय एवं उɮयोग मंğी ) be pleased to state:

- (a) whether the Government has recently enhanced the base import price of Areca nuts;
- (b) if so, the details thereof;
- (c) whether the  said  increase  in  import  price  of  Areca  nuts has  not  given  the  desired benefits to the Areca nut farmers; and
- (d) if  so,  the  reasons  therefor  along  with  the  measures  being  contemplated  by  the Government to help the Areca nut growers?

## ANSWER

okf.kT; ,oa m|ksx ea=ky; esa jkT; ea=h ¼Jh lh- vkj- pkS/kjh½

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI C. R. CHAUDHARY)

- a) to  d):  A Statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF LOK SABHA STARRED QUESTION NO. 39   FOR ANSWER ON 18 th  DECEMBER, 2017 REGARDING 'IMPORT PRICE OF ARECA NUTS'

(a) & (b): The Minimum Import Price (MIP) on areca nut has been revised from Rs 162/- per kilogram to Rs 251/- per kilogram vide Notification No.35/2015-20 dated 17 th January, 2017

- (c) & (d): The increase in import price of areca nut has benefitted the areca nut farmers as may be seen from the following table depicting the monthly average price of areca nut.

Table 1. Monthly average price of Areca nut (dry) in Kozhikode and Sagar (Price: Rs/quintal)

|           | Kozhikode   | Kozhikode   | Sagar (ShimogaDistt. of Karnataka)   | Sagar (ShimogaDistt. of Karnataka)   |
|-----------|-------------|-------------|--------------------------------------|--------------------------------------|
| Month     | 2016-17     | 2017-18     | 2016-17                              | 2017-18                              |
| April     | 19500       | 20600       | 26347                                | 44454                                |
| May       | 19250       | 19375       | 24809                                | 41214                                |
| June      | 18250       | 18000       | 22997                                | 38051                                |
| July      | 19300       | 19125       | 24178                                | 41416                                |
| August    | 19000       | 19300       | 25192                                | 40502                                |
| September | 19000       | 19125       | 25797                                | 37899                                |
| October   | 13500       | 19250       | 27270                                | 36599                                |
| November  | 13500       | 19833       | 27492                                | --                                   |
| December  | 13500       | --          | 26613                                | --                                   |
| January   | 15000       | --          | 26044                                | --                                   |
| February  | 17125       | --          | 27019                                | --                                   |
| March     | 19500       | --          | 35049                                | --                                   |
| Mean      | 17202       | 19541       | 26567                                | 40019                                |

(Source : Directorate of Areca nut& Spices Development)

Thus, the price of areca nut had ruled at Rs.195/kg in April 2016 in Kozhikode market and ended at Rs.135/kg by the end of 2016 December. After the fixation of MIP, the prices of Areca nut increased to Rs150/kg in January 2017 and then to Rs.195/kg in March 2017.  In Sagar also, the price of areca nut increased from Rs.266/kg in December 2016 to Rs.350/kg in March 2017 after fixation of MIP on areca nut. Thus increase in the import price of areca nuts has resulted into benefits for Areca nut growers.

Further, with the increase in MIP from Rs.110/- to Rs.162/- vide Notification No.10/20152020 dated 8th June, 2015 and subsequently to Rs.251/- vide Notification No.35/2015-2020 dated  17th  January,  2017,  imports  have  seen  a  declining  trend  as  may  be  seen  from  the following Table:

| Year                      |   Quantity (tonnes) |   Value (Rs in lakhs) |
|---------------------------|---------------------|-----------------------|
| 2014-15                   |               50036 |                 68235 |
| 2015-16                   |               45190 |                 72221 |
| 2016-17                   |               16151 |                 28628 |
| 2017-18 (April to August) |                7620 |                 19528 |

(Source : Directorate of Areca nut& Spices Development)

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