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Arecanut was imported into the country at an average price of Rs 22.34 a kg from Indonesia during the last fiscal. The imports were made at a time when the domestic price was ruling at Rs 77.77 a kg in Mangalore and Rs 68.46 a kg in Kozhikode. This imports were made at a time when the Centre had stipulated that arecanut cannot be imported at a prices lower than Rs 35 a kg.
These figures have been provided in a reply by the Union Ministry of Commerce Minustry to the Mangalore Lok Sabha representative, Mr Nalin Kumar Kateel, recently.
Mr Kateel asked the Ministry if arecanut is being imported from other countries, including Malaysia and Indonesia.
The Ministry informed him in the Lok Sabha that 76,041.39 tonnes of arecanut worth Rs 258.82 crore were imported from different countries in 2010-11. This works out to average price of Rs 33.96 a kg in the market.
The Ministry said that the domestic production that year was 5.14 lakh tonnes (lt). The average price of the commodity was Rs 77.77 a kg in Mangalore market and Rs 68.46 a kg in Kozhikode market in 2010-11, it said.
Replying to a query of the MP on March 7 last year, the Ministry had stated that the import of arecanut is free, subject to he condition that its price should not be lower than Rs 35 a kg.
In 2010-11, 33,238 tonnes of arecanut valued at Rs 116.53 crore were imported from Bangladesh. This worked out to an average price of Rs 35.05 a kg.
Indonesia exported 23,292.57 tonnes of arecanut worth Rs 52.05 crore. It worked out to an average price of Rs 22.34 a kg, which is far below the floor price for import.
India imported arecanut from Thailand at an average price of Rs 25.48 a kg. That country exported 1,226.54 tonnes worth Rs 3.12 crore to India.
Mr Ramesh Kaintaje, a farmer from Bantwal taluk of Dakshina Kannada district, said that the minimum floor price for import should be increased substantially from the current Rs 35 a kg.
Mr M. Srinivasa Achar, President of All-India Arecanut Growers' Association, said that the Ministry's reply raised many questions. He said that import at such a cheap rate did affect the interests of arecanut growers in the country. India is self-sufficient in arecanut production and there is no need to import it, he said.
The country imported 44,776.34 tonnes of arecanut worth Rs 110.02 crore in 2008-09, and 41,805.84 tonnes worth Rs 102.41 crore in 2009-10, the Ministry informed the MP.
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