Lok Sabha Question No. 770 (UNSTARRED), answered on 2019-06-26
Subject: Import of Arecanut
Ministry: COMMERCE AND INDUSTRY
Asked by: Nalin Kumar Kateel

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

## LOK SABHA UNSTARRED QUESTION NO. 770 TO BE ANSWERED ON  26 th  JUNE, 2019

## IMPORT OF ARECANUT

## 770.   SHRI NALIN KUMAR KATEEL:

Will  the  Minister  of COMMERCE & INDUSTRY ( वािण᭔य एवं उ᳒ोग मंᮢी ) be pleased to state:

- (a) whether arecanut is being imported from other countries including Nepal, Sri Lanka, Malaysia and Indonesia;
- (b) if so, the details thereof, country-wise and year-wise for the last two years;
- (c) whether the Government has taken note of the problems of arecanut growers in the country due to fall in the prices and production of arecanut in domestic market; and
- (d) if  so,  the  steps  being  taken  by  the  Government  to  solve  the  problems  of  arecanut growers and to ensure adequate prices for their produce?

## ANWSER

## okf.kT; ,oa m|ksx ea=h ( Jh ih;w'k xks;y )

## THE MINISTER OF  COMMERCE AND INDUSTRY (SHRI PIYUSH GOYAL)

- (a)  & (b): Import of Arecanut has taken place mainly from Sri Lanka and Indonesia during the last two years and current year. Country wise and year wise import data of areca nut for the last two years is annexed.
- (c)  & (d) To protect the farmers, Government raised the Minimum Import Price from Rs.162/ to  Rs.251/-per  kg  in  the  month  of  January,  2017.  Representations  were  received regarding  large  scale  import  of  areca  nut  despite  imposition  of  MIP,  thus  hurting  the domestic  farmers/growers.  To  address  the  issue,  Government  further  amended  the import  policy  of  areca  nut  in  July,  2018  by  prohibiting  its  imports  below  the  MIP  of Rs.251/-  per  KG.  The  government  has  also  taken,  inter  alia,  the  following  steps  to alleviate the problems of domestic areca nut growers:
- (i) The import duty of Arecanut has been fixed at 100%.
- (ii) Food  Safety  and  Standards  Authority  of  India  (FSSAI)  has  advised  its  field  offices  to stringently  adhere  to  the  quality  standards  of  arecanut  before  clearing  the  import consignments. Moreover, the Bureau of Indian Standards has been asked to formulate standards  for  Arecanut.    This  has  been  done  with  a  view  to  prevent  inferior  quality Arecanut from entering Indian market and destabilizing the domestic prices.

(iii) For import from our FTA partners, Customs authorities have been advised to check the Rules of Origin with utmost care so as to ensure that Arecanut grown in countries other than SAARC is not imported through our neighbouring countries taking advantage of low import duty under SAFTA.

****

Annex India's Imports of Arecanuts, item-wise & country-wise, for the last two financial years (2017-18 to 2018-19) and the current financial year 2019-20 (upto April, 2019)

| ITCHS    | Item Description       | Country         | 2017-18        | 2017-18            | 2018-19        | 2018-19            | 2019-20 (upto April, 2019)   | 2019-20 (upto April, 2019)   |
|----------|------------------------|-----------------|----------------|--------------------|----------------|--------------------|------------------------------|------------------------------|
|          |                        |                 | Quantity (TON) | Value (Mill. US $) | Quantity (TON) | Value (Mill. US $) | Quantity (TON)               | Value (Mill. US $)           |
| 08028010 | WHOLE ARECA NUTS       | INDONESIA       |                |                    | 656.50         | 1.85               | 50.00                        | 0.20                         |
|          |                        | MADAGASCAR      |                |                    |                |                    |                              |                              |
|          |                        | MYANMAR         |                |                    |                |                    |                              |                              |
|          |                        | PAKISTAN IR     |                |                    |                |                    |                              |                              |
|          |                        | SRI LANKA DSR   | 276.15         | 1.09               | 264.00         | 1.02               |                              |                              |
|          |                        | VIETNAM SOC REP |                |                    |                |                    |                              |                              |
|          | WHOLE ARECA NUTS Total |                 | 276.15         | 1.09               | 920.50         | 2.88               | 50.00                        | 0.20                         |
| 08028020 | SPLIT ARECA NUTS       | BANGLADESH PR   |                |                    |                |                    |                              |                              |
|          |                        | INDONESIA       | 36.00          | 0.03               | 3383.00        | 5.28               | 216.00                       | 0.31                         |
|          |                        | MALAYSIA        |                |                    |                |                    |                              |                              |
|          |                        | MYANMAR         |                |                    |                |                    |                              |                              |
|          |                        | NEPAL           |                |                    |                |                    |                              |                              |
|          |                        | PAKISTAN IR     | 1.80           | 0.01               |                |                    |                              |                              |
|          |                        | SRI LANKA DSR   | 51.57          | 0.21               |                |                    |                              |                              |
|          |                        | TIMOR-LESTE     |                |                    |                |                    |                              |                              |
|          | SPLIT ARECA NUTS Total |                 | 89.37          | 0.25               | 3383.00        | 5.28               | 216.00                       | 0.31                         |
| 08028090 | OTHER ARECA NUTS       | AFGHANISTAN     |                |                    | 3.36           | 0.01               |                              |                              |
|          |                        | AUSTRALIA       |                |                    | 0.40           | 0.00               |                              |                              |
|          |                        | BANGLADESH PR   |                |                    |                |                    |                              |                              |
|          |                        | INDONESIA       |                |                    | 3084.00        | 12.27              | 189.00                       | 0.23                         |

|                        | MYANMAR         |          |       |          |       |        |      |
|------------------------|-----------------|----------|-------|----------|-------|--------|------|
|                        | PAKISTAN IR     |          |       |          |       |        |      |
|                        | SINGAPORE       |          |       |          |       |        |      |
|                        | SRI LANKA DSR   | 11509.69 | 45.89 | 10728.96 | 40.29 | 18.00  | 0.07 |
|                        | U ARAB EMTS     |          |       |          |       |        |      |
|                        | U K             |          |       |          |       |        |      |
|                        | VIETNAM SOC REP |          |       | 32.00    | 0.08  |        |      |
| OTHER ARECA NUTS Total |                 | 11509.69 | 45.89 | 13848.72 | 52.66 | 207.00 | 0.29 |

Note 1: No import of item having ITCHS Code '08028030' (Ground Areca nuts) have been reported during the said periods. Note 2: Figures pertaining to the financial years 2018-19 & 2019-20 are Provisional and subject to changes