Arecanut growers upbeat over hike in minimum import price

With the Centre increasing the minimum import price (MIP) for the import of arecanut by Rs 100 a kg, stakeholders say that it will bring in stability in the domestic arecanut market and will help increase the price of arecanut in the domestic market.

All-India Areca Growers’ Association General Secretary Mahesh Puchchappady, told DH that the Government’s decision to increase MIP will have a positive impact in the domestic market which in turn will help in improving the price of arecanut. Strict steps should be taken by the government to check illegal import of arecanuts into the country, he said.

In a notification dated February 14, the Directorate General of Foreign Trade (DGFT), under the Department of Commerce, has increased the minimum price for the import of arecanut from Rs 251 a kg to Rs 351 a kg.

The Central Arecanut and Cocoa Marketing and Processing Co-operative Limited (Campco) President A Kishore Kumar Kodgi said that MIP was fixed based on the cost of production report submitted by the experts. The cost of production for white arecanut was Rs 390 per kg and red arecanut was Rs 420 per kg.

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Campco, along with other arecanut cooperatives including The Malnad Areca Marketing Co-operative Society Ltd (MAMCOS), Tota Utpannagala Marata Sahakara Sangha Niyamith (TUMCOS), The Totagars' Co-Operative Sale Society (TSS) had submitted a memorandum to the Union Commerce and Agriculture, Finance ministries in August 2022 demanding to increase the MIP to protect the interest of the farmers.

Stating that the price of arecanut will go up in the domestic market, he said now the importer has to pay a minimum rate of Rs 351 a kg plus the customs duty of 108 per cent and other charges while importing. “With this our farmers will get better price, and farmers will be benefited with it,” he said.

With the increase in MIP, stakeholders feel that an importer will have to pay around Rs 720 per kg to import a kg of arecanut to the country.

At present, the price of old stocks of white arecanut is between Rs 460 to Rs 500 while that of new stock is between Rs 36 to Rs 400.

TSS General Manager Raveesh A Hegde too felt that hiking the MIP will bring in stability in the arecanut market. When the import becomes costly, the demand for arecanut in the domestic market will rise.

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While an importer termed the hike in MIP as unrealistic and will impact the import badly. There are attempts to curtail the import which is not a good sign. "Total consumption and market demand in the country is around 1 million tonne per year. There is a shortage of arecanut," he said.

However, import of arecanut has gone up by more than 100%, both in terms of quantity and value, during the first eight months of the current financial year.
According to the data provided to a query in Lok Sabha on February 8 to the Member of Parliament from Dakshina Kannada, Nalin Kumar Kateel, by the Union Minister of State for Commerce and Industry, Anupriya Patel, showed that India imported 61,452.21 tonnes of arecanut until November 2022, compared to 25,978.98 tonnes during the financial year 2021-22.