Lok Sabha Question No. 1556 (UNSTARRED), answered on 2025-12-09
Subject: Least Developed Exporting Countries
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Captain Brijesh Chowta

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

## LOK SABHA UNSTARRED QUESTION NO. 1556 ANSWERED ON 09/12/2025

## LEAST DEVELOPED EXPORTING COUNTRIES

## 1556.   SHRI CAPTAIN BRIJESH CHOWTA

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

- (a) whether  the  Government  is  aware  that  large-scale  import  of  areca  nut  from  Least Developed  Exporting  Countries  (LDECs)  at  zero  customs  duty  under  existing  trade agreements is adversely impacting domestic areca growers, particularly in Karnataka, if so, the details thereof,
- (b) the quantum of areca nut imported from LDECs during the last three years, year-wise and country-wise;
- (c) whether the Government has undertaken any impact assessment on how such dutyfree imports are affecting prices, farmer incomes, and market stability in major arecagrowing regions;
- (d) whether the Government proposes to review the zero-duty benefit for areca nut imports from  LDECs  or  introduce  safeguards  to  protect  domestic  farmers,  if  so,  the  details thereof, and
- (e) the measures being taken to curb misdeclaration, smuggling and routing of areca nut through LDECs to exploit duty exemptions?

## ANSWER

वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री ( श्री णिणिन प्रसाद )

## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA)

- (a)  &  (b)  :  The  quantity  and  value  of  arecanut  imported  from  Least  Developed  Exporting Countries (LDECs) during the last three years is as given below:

|            | 2022-23            | 2022-23               | 2023-24            | 2023-24               | 2024-25            | 2024-25               |
|------------|--------------------|-----------------------|--------------------|-----------------------|--------------------|-----------------------|
| Country    | Quantity (in Tons) | Value (in Rs. Crores) | Quantity (in Tons) | Value (in Rs. Crores) | Quantity (in Tons) | Value (in Rs. Crores) |
| Bangladesh | 10                 | 0.29                  | 2946               | 110.38                | 12155              | 447.76                |
| Myanmar    | 32,228             | 883.10                | 3636               | 129.60                | 7569               | 278.24                |
| Bhutan     | ---                | ---                   | 156                | 0.43                  | 1436               | 3.89                  |
| Sub total  | 32238              | 883.39                | 6738               | 240.41                | 21160              | 729.89                |

Source:  Directorate  of  Arecanut  &  Spices  Development,  Calicut,  a  subordinate  office  under Ministry of Agriculture and Farmers Welfare.

The quantity  of  arecanut  imported  from  LDECs  (Bangladesh,  Myanmar  and  Bhutan)  during 2024-25 was 21,160 tonnes, which accounted for only about 1.5% of our domestic production of 14 lakh tonnes. Moreover, imports from LDECs have declined from 32,238 tonnes in 202223 to 21,160 tonnes in 2024-25, mainly due to the revision of the Minimum Import Price (MIP) from ₹251 per Kg. to ₹351 per Kg. in February 2023.

(c) to (e) As per the data available with the Directorate of Arecanut and Spices Development, a subordinate office under Ministry of Agriculture and Farmers Welfare, the annual average price of arecanut during the last four years has remained above ₹40,000 per quintal and has not shown any significant decline. Further, the Government has raised the Minimum Import Price (MIP) of arecanut from Rs. 251/- per Kg. to Rs. 351/- per Kg. in February, 2023 to safeguard the interest of domestic farmers, restrict the imports, prevent entry of inferior quality arecanut into the domestic market and check destabilization of the domestic prices.

The Central Board of Excise & Customs has been verifying the 'Rules of Origin' to ensure that arecanut  produced  in  countries  not  covered  under  the  Duty-Free  Tariff  Preference  (DFTP) Scheme  is  not  imported  through  countries  with  DFTP,  taking  advantage  of  import  duty exemption under trade agreements. Further, the Customs Field Formations and Directorate of Revenue Intelligence (DRI)  under  Central  Board  of  Indirect  Taxes  &  Customs  (CBIC)  keep constant vigil for illicit transportation of arecanut into India through air/sea and land ports and take appropriate action as per the provisions of extant laws to prevent illegal imports.

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