Govt raises arecanut import floor price, to protect growers

The Directorate General of Foreign Trade (DGFT) under the Union ministry of commerce has notified a rise in the cost, insurance and freight (CIF) value of imported arecanut at Rs 110 a kg (now the minimum import price), a rise of 46 per cent over the previous Rs 75 a kg.

India imports arecanut mainly from Bangladesh and Nepal. The move came after the prices of locally grown varieties declined 26 per cent to around Rs 130 a kg early this year, with imported nuts costing much less than the domestic produce. Members of Parliament from arecanut growing states in the south and east had put pressure on the agriculture and commerce ministries last month to increase the price for imported nuts.

Accordingly, growers are happy. Arecanut is grown on around 400,000 hectares and production is estimated at 477,000 tonnes for 2012-13. The Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco, a multi-state cooperative between Karnataka and Kerala, has hailed the DGFT decision. "With this increase in import price, we hope the price of the commodity will not go below Rs 100 a kg in the domestic market, giving much needed relief to growers," said Konkodi Padmanabha, president of Campco. The notification was issued on Monday. It applies to the import of whole, split, ground and other varieties, Padmanabha told Business Standard." This will not only give a major boost to arecanut growers but also go a long way in stabilising the market as a whole in the near future," he said.

He said he also wanted action from the central government on illegal import through Nepal and Bangladesh. There has been a sharp increase in the import from these two nations since 2008-09, he said.

The central government should authorise the health ministry to test the quality imported from these nations and, thereby, prevent entry of inferior quality arecanut into India, he said.

MPs from growing states had also urged the agriculture and commerce ministries to ensure arecanut import was canalised through a government-recognised agency. And, for nominating one major port as a single point of entry, to curb illegal import.