Lok Sabha Question No. 1190 (UNSTARRED), answered on 2016-07-25
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.1190 TO BE ANSWERED ON 25 TH  JULY, 2016

## IMPORT OF ARECANUT

## 1190. SHRI NALIN KUMAR KATEEL:

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

- (a) whether India  is  producing  significant  quantity  of  arecanut  and  if  so,  the  details  of  the production of arecanut during the last three years and the current year; Yearwise;
- (b) whether there is an unabated import of arecanut from neighbouring countries including Indonesia  via  Sri  Lanka  as  the  import  duty  is  low  under  South  Asian  Free  Trade  Area (SAFTA);
- (c) if so, the details of the quantity of imported areca nut under HS Code 0800280 and 080290 during the said period year and month-wise;
- (d) whether  the  Government  is  aware  that  imported  arecanut  destabilises  the  domestic arecanut prices and badly affects the arecanut industry and farmers in the country; and
- (e) if so, whether the Government proposes to bring arecanut out of the SAFTA pact to save the domestic arecanut farmers and the industry and if so, the details thereof?

## ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

- (a) India  produces  more  than  7  lakh  MT  of  arecanut  annually.  Production  of  arecanut  in  the country during the last three years is given below.
- (b)  &  (c):  India  imported  31,571  MT  of  arecanut  during  2015-16  from  Sri  Lanka  and 11,283MTfrom Indonesia during the same period. Details of import against HS Code 080280 (arecanut) and 080290 (other nuts) in the last three years and current year (country, value &
- quantity wise) are given at Annex-I . The month wise import is at Annex-II. (d) Government has taken appropriate protective measures in the interest of arecanut growers. Import Policy of Areca Nut under ITC (HS) code 0802 80 of Chapter 8 of ITC (HS) 2012 - Schedule -1 (Import Policy) is 'free'  subject  to  Minimum  Import  Price  (MIP)  of  Rs. 162/- (CIF) per kg vide Notification No.10/2015-2020 dated 8 th June, 2015 (earlier the MIP was Rs.110/). Further Customs has fixed tariff value for import of arecanutat $2558 per MT (Notification No. 13/2016). Also, Import duty on arecanuthas been set at 100% BCD plus 4% Special  Additional  duty.  Further,  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 import consignments. (e) SAFTA is a regional trade agreement with all South Asian neighbours. This issue was raised  during  the  SAFTA  meetings  held  in  Islamabad  from  2-6  July,  2015  and  the  Member States were appraised of India's concern in this regard. The matter has also been taken up bilaterally with Nepal, Bangladesh and Sri Lanka on the compliance of Rules of Origin by the Customs authorities. Customs has been tasked 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.

| Year    | Production (MT)   |
|---------|-------------------|
| 2013-14 | 698,821           |
| 2014-15 | 727,407           |
| 2015-16 | 702,869           |

Source: Directorate of Arecanut and Spices Development

*****

## Country-wise import of Arecanut (HS Codes: 080280 & 080290)

## (Values in Million US$)

|                 | 2013-14   | 2013-14   | 2014-15   | 2014-15   | 2015-16   | 2015-16   | 2016-17 (APR TO MAY)   | 2016-17 (APR TO MAY)   |
|-----------------|-----------|-----------|-----------|-----------|-----------|-----------|------------------------|------------------------|
| COUNTRY         | QTY (MT)  | VAL       | QTY (MT)  | VAL       | QTY (TMT) | VAL       | QTY (MT)               | VAL                    |
| AFGHANISTAN     | 0.2       | 0.0004    | 126       | 0.26      | NIL       | NIL       | NIL                    | NIL                    |
| BANGLADESH PR   | 37202     | 56.66     | 39176     | 72.5      | 11614     | 24.9      | 434                    | 1.11                   |
| CAMBODIA        | NIL       | NIL       | NIL       | NIL       | 163       | 0.41      | NIL                    | NIL                    |
| EAST TIMOR      | NIL       | NIL       | NIL       | NIL       | NIL       | NIL       | 12                     | 0.03                   |
| INDONESIA       | 2261      | 3.38      | 5789      | 11.78     | 11283     | 22        | 1685                   | 2.96                   |
| MADAGASCAR      | NIL       | NIL       | NIL       | NIL       | 115       | 0.29      | NIL                    | NIL                    |
| MALAYSIA        | NIL       | NIL       | NIL       | NIL       | 3         | 0.01      | NIL                    | NIL                    |
| MYANMAR         | 5672      | 9.69      | 8760      | 18.24     | 6849      | 17.14     | 140                    | 0.37                   |
| NEPAL           | 18556     | 36.24     | 12232     | 26.24     | 4474      | 10.92     | NIL                    | NIL                    |
| PAKISTAN IR     | 2446      | 4.53      | 3673      | 7.14      | 403       | 0.99      | NIL                    | NIL                    |
| SINGAPORE       | NIL       | NIL       | NIL       | NIL       | 652       | 1.1       | 1264                   | 3.15                   |
| SRI LANKA DSR   | 14074     | 26.59     | 40856     | 93.26     | 31571     | 80.11     | 2335                   | 6.17                   |
| SYRIA           | NIL       | NIL       | NIL       | NIL       | 35        | 0.09      | NIL                    | NIL                    |
| TANZANIA REP    | NIL       | NIL       | 42        | 0.08      | 45        | 0.12      | NIL                    | NIL                    |
| THAILAND        | 267       | 0.5       | 102       | 0.21      | NIL       | NIL       | 20                     | 0.04                   |
| U ARAB EMTS     | NIL       | NIL       | NIL       | NIL       | 461       | 0.58      | NIL                    | NIL                    |
| U K             | NIL       | NIL       | NIL       | NIL       | NIL       | NIL       | 17                     | 0.05                   |
| VIETNAM SOC REP | NIL       | NIL       | 114       | 0.25      | 156       | 0.34      | NIL                    | NIL                    |
| Grand Total     | 80478     | 137.59    | 110870    | 229.96    | 67824     | 159       | 5907                   | 13.88                  |

NOTE: Figures for 2015-16 and 2016-17 (April to May) is provisional.

Annex-I

Annex-II Month wise import of Arecanut( HS Code 080280  & 080290)

|                 | 080280 (Arecanut)   | 080280 (Arecanut)   | 080290 (Other nuts)   | 080290 (Other nuts)   |
|-----------------|---------------------|---------------------|-----------------------|-----------------------|
| Month           | Qty(Ton)            | Val(Million USD)    | Qty (Ton)             | Val.(Million USD)     |
| APR-13          | 145                 | 0.27                | 11089                 | 15.37                 |
| MAY-13          | 252                 | 0.44                | 7136                  | 10.05                 |
| JUN-13          | 216                 | 0.41                | 1346                  | 2.18                  |
| JUL-13          | 455                 | 0.88                | 6380                  | 11.11                 |
| AUG-13          | 961                 | 1.8                 | 1026                  | 1.84                  |
| SEP-13          | 434                 | 0.77                | 9740                  | 16.82                 |
| OCT-13          | 1092                | 2.02                | 4873                  | 9.73                  |
| NOV-13          | 1835                | 3.38                | 4388                  | 8                     |
| DEC-13          | 1296                | 2.43                | 5498                  | 8.82                  |
| JAN-14          | 1934                | 3.63                | 5991                  | 10.65                 |
| FEB-14          | 1667                | 3.16                | 5286                  | 9.84                  |
| MAR-14          | 3745                | 7.18                | 3693                  | 6.81                  |
| Total (2013-14) | 14032               | 26.37               | 66446                 | 111.22                |
| APR-14          | 3675                | 7.19                | 9172                  | 17.33                 |
| MAY-14          | 4021                | 8.16                | 8664                  | 16.45                 |
| JUN-14          | 3316                | 6.71                | 7461                  | 13.98                 |
| JUL-14          | 6286                | 12.35               | 331                   | 0.7                   |
| AUG-14          | 3085                | 6.81                | 2298                  | 4.58                  |
| SEP-14          | 1356                | 3.26                | 11083                 | 20.77                 |
| OCT-14          | 2421                | 5.85                | 3988                  | 8.52                  |

| NOV-14            | 3584              | 8.5               | 1367                 | 2.85                 |
|-------------------|-------------------|-------------------|----------------------|----------------------|
| DEC-14            | 5287              | 12.78             | 1610                 | 3.35                 |
| JAN-15            | 5173              | 12.16             | 2647                 | 5.6                  |
| FEB-15            | 6875              | 15.92             | 1598                 | 3.44                 |
| MAR-15            | 4957              | 11.54             | 10615                | 21.16                |
| Total (2014-15)   | 50036             | 111.23            | 60834                | 118.73               |
| APR-15            | 10598             | 23.4              | nil                  | nil                  |
| MAY-15            | 3746              | 8.71              | 3890                 | 8.23                 |
| JUN-15            | 6531              | 15.55             | 2358                 | 5.77                 |
| JUL-15            | 3906              | 10.08             | 32                   | 0.07                 |
| AUG-15            | 2270              | 5.98              | 3312                 | 8.18                 |
| SEP-15            | 1836              | 4.7               | 2365                 | 5.69                 |
| OCT-15            | 2916              | 8.66              | 3675                 | 5.86                 |
| NOV-15            | 4410              | 11.78             | 2056                 | 4.37                 |
| DEC-15            | 3094              | 7.19              | 216                  | 0.57                 |
| JAN-16            | 4071              | 10.7              | 1938                 | 3.91                 |
| FEB-16            | 965               | 2.51              | 1124                 | 2.01                 |
| MAR-16            | 849               | 2.28              | 1666                 | 2.8                  |
| Total (2015-16)   | 45192             | 111.54            | 22632                | 47.46                |
| 080280 (Arecanut) | 080280 (Arecanut) | 080280 (Arecanut) | 080280 (Other nuts ) | 080280 (Other nuts ) |
| Month             | Qty (Ton)         | Val(Million USD)  | Qty (Ton)            | Val(Million USD)     |
| APR-16            | 763               | 2.05              | 1397                 | 2.98                 |
| MAY-16            | 1589              | 4.17              | 2158                 | 4.68                 |

Note: Figures for 2015-16, Apr-May,2016 are provisional.

Source: DGCIS