The Centre has said import of arecanut is just 2 per cent of the total production in India and such a small quantity of import will not impact on prices in the domestic market.
"The domestic production of arecanut during 2021-22 is around 13.99 lakh tonnes from an area of 7.77 lakh hectare. 25,979 tonnes of arecanut was imported during 2021-22, which is less than 2 per cent of the domestic production of arecanut. This insignificant import of arecanut does not have any impact on domestic price," Minister of State for Commerce and Industry Anupriya Patel has said in Rajya Sabha.
Replying to Janata Dal (U) Rajya Sabha member Aneel Prasad Hegde question, the Minister said there is no substantial fall in arecanut price in domestic market.
As per the available data, there has been substantial increase in the domestic prices of arecanut from Sep 2019 (Rs. 25,000/-) to Sep 2021 (Rs. 47,125/-) i.e. 88 per cent increase in Kasaragod and (Rs. 21,600/- to Rs. 39,000/-) 80 per cent increase in Kozhikode, the Minister said in her written answer.
She also said that the Centre has taken a number of measures to discourage import of arecanut. Listing out the measures, the MInister said, the arecanut import in the country is restricted by imposing an import duty of 100 per cent. However, as per the Notification No. 99/2011-Customs dated 09-11-2011, the least developed SAARC countries like Bangladesh, Bhutan, Maldives, Nepal and Afghanistan have been exempted from paying the whole of this import duty, the Minister said.
Minimum Import Price (MIP) on arecanut has been imposed at a CIF (Cost, Insurance and Freight) value of Rs 251/kg to restrict the unabated import and thus to prevent entry of inferior quality arecanut into Indian market and destabilizing the domestic prices. MIP below Rs. 251/kg has been prohibited since July 2018, the Minister said.
The Food Safety and Standards Authority of India (FSSAI) has advised adhere to the quality standards of arecanut before clearing the import consignments and 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 neighbouring countries taking advantage of import duty exemption under SAFTA ( South Asian Free Trade Area).
Instructions have been given to the concerned department to keep strict vigil on economic frontiers to prohibit illegal import of arecanut, he said.