The country’s arecanut market is currently facing significant import pressure. Large-scale duty-free arecanut imports from least developed countries (LDCs) like Bhutan, Myanmar, and Sri Lanka have severely impacted the incomes and market stability of Indian farmers. This issue was raised by Dakhin Kannada MP Captain Brijesh Chowta in the Lok Sabha on Monday under Rule 377.
Whereas India’s duty-free, quota-free (DFQF) trade facility is intended to provide economic support to LDC countries, misuse of this provision is adversely affecting the interests of Indian arecanut farmers. Taking advantage of zero customs duty, large quantities of low-priced and low-quality arecanut are entering the Indian market, driving down prices and distressing arecanut farmers.
India is self-sufficient, still arecanut imports continue
In 2023–24, India produced approximately 1.4 million tonnes of arecanut, of which Karnataka contributed nearly 1 million tonnes. Despite this, zero-duty imports have created a disastrous situation. Karnataka’s arecanut producing districts—Dakkhina Kannada, Shivamogga, Udupi, and Chikkamagaluru—are experiencing a sharp drop in prices and significant income losses. Under normal circumstances, arecanut imports attract 100% basic customs duty. The DFQF exemption has rendered this protective framework ineffective, jeopardizing the livelihoods of millions of farmers.
Demand for Ministerial Intervention
Captain Chowta has submitted a detailed report to Finance Minister Nirmala Sitharaman and Commerce and Industry Minister Piyush Goyal in this regard. He demanded that arecanut be immediately excluded from the DFQF benefit and that normal duties be reimposed on imports from LDC countries. He stated that India is committed to supporting LDC countries, but this support should not come at the expense of the economic security of Indian farmers.
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