The Hindu Business Line : Imports taking toll on arecanut trade: Campco

CENTRAL Arecanut and Cocoa Marketing and Processing Cooperative (Campco) Ltd and various other areca-growers associations have said the arecanut market in the eastern region has been hit by imports of substandard quality nut from neighbouring countries. They have sought the intervention of the Union Government to stop this import.

The eastern areca-consuming market, including West Bengal, Bihar and Uttar Pradesh, contribute a significant share to the arecanut trade in the country.

Addressing newspersons here on Friday, the Campco President, Mr L.N. Kudoor, said arecanut was being imported from Bangladesh through Petrapole port by using SAARC benefits. Bulk quantities of sub-standard arecanut are pending for clearance at the port, he said.

Though Bangladesh is not a major arecanut-producing country, arecanut grown in other places are brought through Bangladesh by availing of the SAARC benefits. Under the SAARC benefit, importers will get 50 per cent duty concession. Most of the traders undervalue the commodity while importing it, he said.

Added to this, imported arecanut is slowly invading the Maharashtra market.

Stating that these sub-standard goods are released from the port without any quality testing, he said there was no demand for quality Indian arecanut in the domestic market.

He urged the Union Government to cancel the advance licences sanctioned for arecanut import.

Apart from Bangladesh, arecanut is being imported from Myanmar, Indonesia, Thailand and Sri Lanka. The import is taking place at a time when arecanut production is more than the consumption in the country. More than 50,000 tonnes of arecanut is being imported every year, he said.

The sub-standard quality arecanut is being imported at Rs 40 a kg, where as the production cost in the country is Rs 60 a kg.

He said arecanut is being cultivated on 4 lakh hectares in Karnataka, Kerala and Assam. These three States together produce around 5 lakh tonnes of arecanut every year. Of this, Karnataka's share is around 2.2 lakh tonnes. In Karnataka, nearly five lakh families are directly involved in the cultivation of arecanut and nearly 30 lakh people are involved in production, process and trading of arecanut, he said.

The State Government has decided to take a delegation to the Union Commerce Ministry in the coming days. Representatives from Kerala will be part of the delegation. He said they would urge the Union Government to impose a ban on import of arecanut.

The President of the All-India Areca Growers' Association, Mr M. Srinivasa Achar, said arecanut growers would resort to agitations, if the Union Government fails to take any decision in this regard.

The President of the Mangalore Agriculturists' Souharda Sahakari Ltd, Mr Sridhar Bhide, and the President of the South Kanara Agriculturists' Cooperative Marketing Society, Mr S.R. Satishchandra, were also present.

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