At a time when stakeholders in the domestic arecanut sector have been expressing concerns over the import of arecanut, latest data provided by the Centre show that countries such as Bangladesh, Sri Lanka, Myanmar and Indonesia lead in the exporting the commodity to India.
On Tuesday, Piyush Goyal, Union Commerce and Industry Minister, informed the Lok Sabha that India imported 42,236.02 tonnes of arecanut valued ₹1208.34 crore ($143.45 million) in 2024-25, and exported 2,396.26 tonnes valued ₹105.84 crore ($12.55 million).
A day before this, on Monday, Captain Brijesh Chowta, Member of Parliament from Dakshina Kannada, highlighted the large-scale import of arecanuts from least developed countries (LDCs), and its impact on domestic arecanut market and farmers in the country.
Zero customs duty
According to the Minister’s reply, India imported 12155.40 tonnes of arecanut valued ₹447.76 crore ($53.06 million) from Bangladesh in 2024-25, followed by 8353.70 tonnes valued ₹303.70 crore ($35.97 million) from Sri Lanka, 7,569.03 tonnes valued ₹278.24 crore ($33.20 million), and 11,589.56 tonnes valued ₹129.35 crore ($15.36 million) from Indonesia.
Raising this issue under Rule 377 in the Lok Sabha on Monday, Capt Chowta said some LDCs enjoy zero customs duty under India’s duty-free quota-free (DFQF) preferential trade scheme. Though DFQF is a provision originally intended to support LDC economies, it is now being misused in a way that harms Indian farmers.
Stating that India is self-sufficient in arecanut production, he said it produced around 14 lakh tonnes (lt) in 2023-24. Of this, Karnataka alone contributed nearly 10 lt. Despite this, large volumes of zero-duty imports continue to enter the country, creating a steep and unfair price disparity that erodes the competitiveness of farmers in major growing regions.
Exclude areca from DFQF benefits
Mentioning that normal arecanut imports attract 100 per cent basic customs duty, Capt Chowta said the DFQF exemption nullifies this protection entirely. This loophole has led to price crashes, market instability and deep economic anxiety among lakhs of cultivators whose livelihoods depend on the crop.
Captain Chowta also submitted detailed representations to the Union Finance Minister Nirmala Sitharaman and Piyush Goyal, urging them to exclude arecanut from DFQF benefits and reinstate normal customs duty on imports from LDCs.
He emphasised that while India remains committed to supporting LDC economies, such concessions must not compromise the economic security of Indian farmers.
“The DFQF exemption has unintentionally opened the gates for arecanut dumping, causing severe losses to our farmers, especially those in Dakshina Kannada who are already facing price instability. India is fully self-sufficient in arecanut, yet our markets are being destabilised by zero-duty imports. I urge the Government to immediately exclude arecanut from DFQF benefits to safeguard the livelihoods of lakhs of cultivators in Dakshina Kannada and other arecanut-growing regions,” he said.
