Arecanut imported from LDECs in 2024-25 accounted for 1.5% of India’s domestic production: Union Minister

Imports of arecanut to India from Least Developed Exporting Countries (LDECs) declined from 32,238 tonnes in 2022-23 to 21,160 tonnes in 2024-25, according to Jitin Prasada, Union Minister of State in the Ministry of Commerce and Industry.

It was mainly due to the revision of the Minimum Import Price (MIP) for arecanut from ₹251 per kg to ₹351 per kg in February 2023, the Minister said.

The quantity of arecanut imported from LDECs (Bangladesh, Myanmar and Bhutan) during 2024-25 accounted for only about 1.5% of India’s domestic production of 14 lakh tonnes, he informed the Lok Sabha on December 9 in response to an unstarred question by Captain Brijesh Chowta.

As per the data available with the Directorate of Arecanut and Spices Development, a subordinate office under the Union Ministry of Agriculture and Farmers Welfare, the annual average price of arecanut during the last four years has remained above ₹40,000 per quintal, and has not shown any significant decline. Further, the government raised the MIP of arecanut in 2023 to safeguard the interest of domestic farmers, restrict imports, prevent entry of inferior quality arecanut into the domestic market, and check destabilization of domestic prices, the Minister said.

The Central Board of Excise & Customs has been verifying the ‘Rules of Origin’ to ensure that arecanut produced in countries not covered under the Duty-Free Tariff Preference (DFTP) Scheme is not imported through countries with DFTP, taking advantage of import duty exemption under trade agreements.

Further, the Customs Field Formations and Directorate of Revenue Intelligence (DRI) under Central Board of Indirect Taxes & Customs (CBIC) keep constant vigil for illicit transportation of arecanut into India through air, sea and land ports, and take appropriate action as per the provisions of extant laws to prevent illegal imports, the Minister said.