‘Centre nod to hike min price of imported arecanut’.

The move will discourage imports and boost price of arecanut in India, says Campco chief

The Central Arecanut and Cocoa Marketing and Processing Cooperative (CAMPCO) Limited  President Konkody Padmanabha said that Central government has agreed to increase minimum price for imported arecanut from Rs 35 to Rs 75 per kg.

In a notification dated August 14, the Directorate General of Foreign Trade (DGFT) has increased the minimum price for import. The notification has boosted the arecanut growers and also helps in stabilising arecanut market in the days to come.


The minimum price for import is enhanced from the existing Rs 35 to Rs 75 a kg,’’ the notification issued by DGFT Anup K Pujari said. The notification applies to the import of whole, split, ground and other areca nuts.


He said that importers would have to pay an import duty to an extent of 108 per cent to the base price. Hence arecanut import will cost more than Rs 160 a kg. This in turn will discourage imports further and boost the price of arecanut in India, he added.


The Campco has been demanding the Central government to increase minimum floor price on import for the last several years. Thanking the Centre, he said the government should initiate measures to control illegal import through Bangladesh and Nepal. As per the Indo-Nepal treaty, huge quantity of arecanut is plunged into Nepal along with huge imports before reaching the destination and sold in Indian markets.


Arecanut is not grown in Nepal and as a result, it should not find a place for importing under the Indo-Nepal trade treaty.

The arecanut growers need to be protected from such loopholes existing in the trade treaties with our neighbouring countries, he said.


India has imported 332380.05 quintals of arecanut worth Rs 116.53 cr from Bangladesh in 2010-11 while 146040.29 quintals worth Rs 71.52 crore from Nepal.
Arecanut is imported to India on job work basis and the inferior quality of arecanut imported under this schemes is used for manufacturing gutka.


He claimed that inferior quality arecanut was being imported from Indonesia  Thailand and Bangladesh. The inferior quality was suppressing the prices of quality of domestic arecanut. The Central government should authorise any national research institute to test the quality of arecanut imported, so as to curb the entry of inferior quality of arecanut, he said.  


The president urged to put arecanut under the ‘canalized list’ and the same can be canalised through any recognised agency so as to have a direct control on the imports and can decide imports based on the domestic production in the interest of the arecanut growers.


Managing Director Suresh Bhandary and Vice-President Sathishchandra Bhandary were present

Source : deccanherald.com