Lok Sabha Question No. 2398 (UNSTARRED), answered on 2022-03-16
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. 2398 TO BE ANSWERED ON 16 th  MARCH, 2022

## IMPORT OF ARECANUT

## 2398. SHRI NALIN KUMAR KATEEL:

Will the Minister of COMMERCE & INDUSTRY ( वाणिज्य एवं उद्योग मंत्री ) be pleased to state:

- (a) whether arecanut is imported from other countries including Bangladesh and Sri Lanka;
- (b) if so, the details of the total arecanut imported in the country during the last three years and the current year, country-wise;
- (c) whether there has been an adverse impact of such import on the prices of arecanut in the domestic market; and
- (d) if so, the details thereof along with the measures being taken by the Government to protect the interests of arecanut growers in the country?

## ANSWER

okf.kT; ,oa m|ksx ea=ky; esa jkT; ea=h ¼Jherh vuqfiz;k iVsy½

## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SMT. ANUPRIYA PATEL)

(a)& (b): Import of Arecanut has taken place mainly from Sri Lanka and Indonesia during the last three years and the current year. Country-wise and year-wise import data of arecanut for the last three years and current year are annexed.

- (c ) & (d): Average price of Arecanut since 2019-20 is given in the table below.

(Price in Rs/quintal)

| period         | Kozhikode (Arecanut dry)   | Kozhikode (Arecanut dry)   | Kozhikode (Arecanut dry)   | Kasaragod (Arecanut Dry)   | Kasaragod (Arecanut Dry)   | Kasaragod (Arecanut Dry)   |
|----------------|----------------------------|----------------------------|----------------------------|----------------------------|----------------------------|----------------------------|
|                | 2019-20                    | 2020-21                    | 2021-22 ( till Jan, 2022)  | 2019- 20                   | 2020-21                    | 2021-22 ( till Jan, 2022)  |
| Average prices | 21797                      | 28658                      | 35397                      | 27158                      | 33335                      | 42872                      |

Source: Ministry of Agriculture and Farmers Welfare

The production of arecanut in the country during 2020-21 was 15.63 lakh tonnes and the import was 23988 tonnes, which is only 1.5% of the production , this may not have much impact on prices.

The Government has taken the following measures to discourage the import of arecanut into the country.

- (i) The Arecanut import in the country is restricted by imposing an import duty of 100%. (As per the 99/2011-Customs notification dt. 9-11-2011, the least developed SAARC countries  like  Bangladesh,  Bhutan,  Maldives,  Nepal  and  Afghanistan  have  been exempted from paying the whole of this import duty).
- (ii) 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 neighboring countries taking advantage of import duty exemption under SAFTA.
- (iii) Imposed Minimum Import Price (MIP) on arecanut to restrict the unabated import and to prevent entry of inferior quality Arecanut into Indian market and destabilizing the domestic prices. It was first introduced in August 2012 and the then MIP was Rs 75/kg and  it  has  been  revised  from  time  to  time  in  proportion  to  the  increase  in  cost  of production and price. At present, the MIP is fixed at a CIF (Cost, Insurance and Freight) value of Rs 251/kg, import of arecanut below this value is prohibited.
- (iv) 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.
- (v) The 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.
- (vi) Promoting technology of multi-species cropping in arecanut gardens through establishing frontline demonstration plots and conducting training programmes.
- (vii) Demonstrating the effect of the new fungicide Mandipropamid, in management of fruit rot in selected areas of Kerala and Karnataka.
- (viii) Frontline  demonstration  plots  are  being  established  to  popularize  the  use  of  EPN (Entomopathogenic Nematode) in management of root grubs in Arecanut.
- (ix) Demonstration of Arecanut  Dwarf Hybrids to promote its advantages  among progressive farmers.

****

## Statement referred to in reply of part (a) & (b) of Lok Sabha Unstarred question no. 2398 for answer on 16 th  March 2022.

Country-wise and year-wise details of Arecanut import:

****

(Quantity: tonnes, Value: Rs in lakhs)

| Country     | 2018-19   | 2018-19   | 2019-20   | 2019-20   | 2020-21   | 2020-21   | 2021-22(Apr- Jan)*   | 2021-22(Apr- Jan)*   |
|-------------|-----------|-----------|-----------|-----------|-----------|-----------|----------------------|----------------------|
| Country     | Quantity  | Value     | Quantity  | Value     | Quantity  | Value     | Quantity             | Value                |
| Sri Lanka   | 10993     | 29059     | 9555      | 25572     | 10093     | 27911     | 9076                 | 28353                |
| Indonesia   | 7124      | 13637     | 7107      | 8535      | 9861      | 12383     | 4885                 | 8421                 |
| Myanmar     |           |           |           |           | 3818      | 9994      | 2882                 | 7675                 |
| UAE         |           |           |           |           | 217       | 570       | 612                  | 1228                 |
| Vietnam     | 32        | 57        | 98        | 145       |           |           |                      |                      |
| Afghanistan | 3         | 9         |           |           |           |           |                      |                      |
| Australia   | 0         | 2         |           |           |           |           |                      |                      |
| Malaysia    |           |           |           |           |           |           | 222                  | 583                  |
| Nepal       |           |           |           |           |           |           | 120                  | 307                  |
| Singapore   |           |           |           |           |           |           | 93                   | 245                  |
| Canada      |           |           | 1         | 5         |           |           |                      |                      |
| Total       | 18152     | 42764     | 16761     | 34257     | 23988     | 50859     | 17890                | 46812                |

Source; DGCI&S. * Provisonal