Govt hikes minimum import price for arecanut by ₹100 a kg

The Centre has increased the minimum price (MIP) for the import of arecanut by ₹100 a kg.

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 ₹251 a kg to ₹351 a kg.

However, the notification said the given conditions should not be applicable for imports by 100 per cent Export Oriented Units (EOU) and units in the SEZ subject to the condition that no DTA sale is allowed.

Considering the increase in the import of arecanut and the cost of cultivation, the cooperatives in the arecanut sector, including the Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco) Ltd, were seeking an increase in the MIP.

The Union Minister of State for Agriculture and Farmers’ Welfare, Shobha Karandlaje, who was in Puttur of Dakshina Kannada district on February 10, to participate in the agri machinery fair of Campco, had stated that her department had forwarded a proposal to the DGFT to increase the MIP from the existing ₹251 a kg to ₹351 a kg.

Campco had reiterated the demand for an increase in the MIP during the visit of Amit Shah, Union Cooperation Minister, to participate in the golden jubilee celebrations of Campco on February 11.

Stakeholders welcome move

Thanking the Union Commerce Minister, Piyush Goyal, the Cooperative Minister, Amit Shah; and Shobha Karandlaje for considering the requests of farmers and cooperatives, Kishore Kumar Kodgi, President of Campco, told businessline that as a president of Campco, representing 1.38 lakh members, he is pleased because the cost of cultivation has drastically increased in the last five years.

Campco, along with other arecanut cooperatives, submitted a memorandum to the Union Commerce and Agriculture ministries in August 2022.

Expecting the price of arecanut to go up, he said now the importer has to pay a minimum rate of ₹351 a kg plus the Customs Duty of 108 per cent. “Naturally our farmers will get best rate, and the benefit goes to them. I am very happy that the Government has taken a good decision,” he said.

Mahesh Puchchappady, General Secretary of All-India Areca Growers’ Association, told businessline that the Government’s decision to increase MIP will play a positive role in the domestic market, and the price may go up.

He hoped that the price of the new stocks of white arecanut, which is around ₹370 a kg now, may go up to ₹400 a kg. The old stocks of white arecanut, which is about ₹455 a kg now, may go up to ₹475-485 a kg, he said.

Imports up

It may be mentioned here that the import of arecanut has gone up by more than 100 per cent, both in terms of quantity and value, during the first eight months of the current financial year.

Data provided to a query in Lok Sabha on February 8 showed that India imported 61452.21 tonnes of arecanut till November of 2022-23 against 25978.98 tonnes during the entire financial year of 2021-22. That means Indian arecanut import went up by 136.35 per cent in the first eight months of the current fiscal.

The value of the imported arecanut went up from $90.18 million in 2021-22 to $217.8 million in the first eight months of the financial year 2022-23.

Addressing media persons in Mangaluru on Wednesday, Kodgi said the cost of cultivation for white arecanut works out to around ₹390 a kg and ₹420 a kg for red variety.

The price of arecanut was going down in the recent days, and this notification will help in bringing stability to the market, he said.

Campco was offering ₹360-400 a kg for new stocks of white arecanut and ₹460-500 a kg for old stockson Wednesday, he said. The price of red arecanut was around ₹465-475 a kg.

To a query, he said there has been a rapid expansion of arecanut crop in non-traditional areas. There are apprehensions among farmers in arecanut-growing areas that such an expansion would impact the price of the commodity in the coming years, he said, adding, it is for the farmers to take a call on such issues.

He suggested that arecanut growers can grow medicinal plants as intercrop in their plantations. The Campco board will discuss this matter in the coming days, Kodgi said.