Lok Sabha Question No. 2164 (UNSTARRED), answered on 2023-08-02
Subject: Import of Arecanut
Ministry: COMMERCE AND INDUSTRY
Asked by: Nalin Kumar Kateel, Sumalatha Ambareesh

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

## LOK SABHA UNSTARRED QUESTION NO. 2164 ANSWERED ON 02/08/2023

## IMPORT OF ARECANUT

## 2164.   SHRI NALIN KUMAR KATEEL: SHRIMATI SUMALATHA AMBAREESH:

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

- (a) whether it is true that there has been a steady increase in the import of arecanut from Myanmar, Sri Lanka and Indonesia in the last nearly two years;
- (b) if  so,  whether  the  Government  has  taken  steps  to  impose  Minimum  Import  Price  (MIP)  to safeguard domestic farmers and if so, the details thereof and if not reasons therefor;
- (c) whether it is true that the government has not imported arecanut from Bhutan in the last four years, including the current financial year and if so, the details thereof;
- (d) whether it is also true that the Government has in July 2023 issued a circular to import arecanut from Bhutan every year and if so, the details thereof; and
- (e) whether the Government has taken note of the concern expressed by domestic arecanut growers and if so, the response of the Government in this regard?

## ANSWER

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

(a): There has been an increase in the import of arecanuts in the last two years from Myanmar, Sri Lanka and Indonesia.

(b): Considering the  increase in import of arecanuts into the country, the Government has raised the Minimum Import Price (MIP) of arecanut under ITC(HS) 080280 from Rs. 251/- per kg. to Rs. 351/per kg. vide Notification No. 57/2015-2020 dated 14 th February, 2023 so as to safeguard the interest of domestic farmers.  Further, the import policy of Supari under ITC(HS) 21069030 is revised from 'free' to

'prohibited' and import of Supari is 'free' if CIF value is Rs. 351/- or above per kilogram vide the said Notification.    The  MIP  conditions  shall  not  be  applicable  for  imports  by  100%  Export  Oriented  Units (EOUs) and units in the SEZs subject to the condition that no Domestic Tariff Area sale is allowed.

(c) & (d): Yes, Sir.  There has been no import of arecanut from Bhutan during the last four years.  As per the Notification No. 36/2015-2020 dated 28 th September, 2022 read with Notification No. 17/2023 dated 3 rd July, 2023 issued by the Government, import of 17,000 MT of fresh (green) arecanut from Bhutan has been allowed every year without MIP condition and such imports are allowed only through LCS Jaigaon (INJIGB) and LCS Chamurchi (INCHMB) and such imports are subject to a valid port-specific Registration Certificate issued by the Directorate General of Foreign Trade (DGFT).

(e): Based on various representations received from domestic farmers and farmers' organizations, the Government has taken the following measures to restrict the unabated imports of arecanut and to prevent entry of inferior quality acrecanut into Indian market destabilizing the domestic prices:-

- (i) Import of arecanut is discouraged by imposing import duty @ 100% which is the Bound Rate of Duty.
- (ii) Import of arecanut and Supari is 'free' if CIF value is equal or above the MIP value of Rs. 351/- per kg. and 'prohibited' is CIF value is less than Rs. 351/- per kg.
- (iii) Stringent  adherence  of  quality  standards  by  field  offices  of  FSSAI  before  clearing  the  import consignments.
- (iv) Checking of 'Rules of Origin' by Customs to ensure that arecanut grown in countries other than SAARC  is  not  imported  through  our  neighbouring  countries  taking  advantage  of  import  duty exemption under trade agreements.

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