The Hindu Business Line : Centre to fix tariff value for arecanut imports

The background
Arecanut is being imported at Rs 10-11 a kg.
After payment of 100 per cent customs duty, the importer's cost comes to Rs 23 a kg.
Still, importers are able to sell it at higher price.

Mangalore , Dec. 19

In a major step towards curbing the import of arecanut into the country, the Union Government has agreed to fix tariff rate on imports and set up a quality certification agency for it.

Mr S.R. Rangamurthy, President of the Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco) Ltd, told Business Line from New Delhi that the Union Agriculture and Food Minister, Mr Sharad Pawar, and the Union Commerce Minister, Mr Kamal Nath , met a delegation of co-operatives from arecanut sector in New Delhi on Tuesday, and agreed to fix tariff rate for imported arecanut.

Under-invoicing

Explaining the mode of arecanut import, he said arecanut was being imported by under-invoicing the shipments. In such a situation there was a need for tariff rate for imported arecanut. Some people import white arecanut at Rs 10-11 a kg, and pay 100 per cent duty on the imported arecanut. While they incur a cost of Rs 21-22 a kg in this process, they sell the commodity for much higher price in the domestic market.

The production cost of white arecanut stood at Rs 60 a kg in the domestic market, Mr Rangamurthy said.

Current costs

If the tariff rate is fixed at the current production cost — say Rs 60 a kg — the importer would have to pay that amount plus the amount at which he imports the commodity. "We want to see that the growers' interest is not affected by imports," he said.

The Ministers' approval for fixing a tariff rate for imported arecanut will give a major boost for the growth of domestic arecanut market.

On Tuesday, old stocks of white arecanut commanded a price of Rs 75-80 a kg in the Mangalore market.

CERTIFICATION AGENCY

Stating that the Union Government has given "in-principle" approval for the establishment of a quality certification agency for imported arecanut, he said the imported stocks of arecanut were of inferior quality. Some importers mix the imported commodity with the Indian arecanut stocks and sell them in the market, and some others send it for `gutkha' manufactures. "A quality certification agency will help in controlling arecanut import," he said.

Added to this, the Union Government has promised to allow arecanut import through only one port in the country. This would help control illegal import of arecanut to a large extent, he said.

The President of the Sirsi-based Totagars' Sales Society, Mr Shantaram Hegde, the Karnataka Minister for Fisheries and former President of Campco, Mr B. Nagaraja Shetty, and Mr R.V. Deshpande, MLA, were part of the delegation.

More Stories on : Agricultural Policy | Plantations | Exports & Imports

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
A formula to grow organic paddy profitably

Easterly wave set to break dry spell in TN

ITC to open 54 Choupal Fresh outlets in 3 years

Short supply seen lasting in rubber till 2020

Rubber Board cautions growers against holding stocks

Rubber prices soften further

Sugar mills bullish on exports as global prices recover

TN sugar industry unhappy about VAT law

Amrit Banaspati in restructuring mode

Pepper futures up on buying support

Declining trend

Centre to fix tariff value for arecanut imports

PAN must from April 1 to trade in futures