**Executive Summary**
This document is a response to Unstarred Question No. 1556 in Lok Sabha, answered on December 9, 2025, concerning the import of areca nut from Least Developed Exporting Countries (LDECs) and its impact on domestic areca growers. It provides data on areca nut imports from LDECs over the last three years and outlines measures taken to protect domestic farmers. The report includes import quantity and value data for 2022-23, 2023-24, and 2024-25.
**Key Points / Main Content**
* **Areca Nut Imports from LDECs (2022-2025)**
* The document provides a table detailing the quantity (in tons) and value (in Rs. Crores) of areca nut imported from Bangladesh, Myanmar, and Bhutan for the years 2022-23, 2023-24, and 2024-25.
* The subtotal import quantities and values are also provided for each year.
* **Import Volume and Impact**
* Imports from LDECs accounted for approximately 1.5% of India's domestic production of 14 lakh tonnes in 2024-25.
* Imports from LDECs have decreased from 32,238 tonnes in 2022-23 to 21,160 tonnes in 2024-25.
* **Measures to Protect Domestic Farmers**
* The Minimum Import Price (MIP) of areca nut was raised from Rs. 251/- per Kg. to Rs. 351/- per Kg. in February 2023 to safeguard domestic farmers.
* The MIP increase aims to restrict imports, prevent the entry of inferior quality areca nut, and stabilize domestic prices.
* **Curbing Illegal Imports**
* The Central Board of Excise & Customs verifies 'Rules of Origin' to prevent the import of areca nut produced in non-DFTP countries through countries with Duty-Free Tariff Preference (DFTP).
* The Customs Field Formations and Directorate of Revenue Intelligence (DRI) monitor illicit transportation of areca nut and take action under existing laws to prevent illegal imports.
* **Market Stability**
* The average price of areca nut has remained above ₹40,000 per quintal over the last four years, without any significant decline.
**Impact Analysis**
**Domestic Areca Nut Farmers**
* **Impact**: Concerned about the impact of duty-free imports on prices, income, and market stability.
* **Action Required**: Benefit from government measures like the increased Minimum Import Price (MIP) designed to protect their interests.
**Government (Ministry of Commerce & Industry, Central Board of Excise & Customs, Directorate of Revenue Intelligence)**
* **Impact**: Responsible for addressing concerns regarding areca nut imports and implementing measures to protect domestic farmers.
* **Action Required**: Monitor import activities, enforce the 'Rules of Origin', take action against illegal imports, and ensure the MIP is effective in safeguarding domestic interests.
Key Entities Referenced
Ministry of Commerce & Industry: The primary ministry responsible for the matter discussed in the document concerning areca nut imports.
Least Developed Exporting Countries (LDECs): Countries from which areca nut is imported under zero customs duty, impacting domestic growers.
Areca nut: The specific agricultural product that is the subject of import and trade policy concerns.
Minimum Import Price (MIP): Government price floor set for areca nut to safeguard domestic farmers.
Karnataka: The state mentioned as particularly affected by areca nut imports.
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
DEPARTMENT OF COMMERCE
LOK SABHA
UNSTARRED QUESTION NO. 1556
ANSWERED ON 09/12/2025
LEAST DEVELOPED EXPORTING COUNTRIES
1556. SHRI CAPTAIN BRIJESH CHOWTA
Will the Minister of COMMERCE AND INDUSTRY (वाणिज्य एवं उद्योग मंत्री) be pleased to state:
(a) whether the Government is aware that large-scale import of areca nut from Least
Developed Exporting Countries (LDECs) at zero customs duty under existing trade
agreements is adversely impacting domestic areca growers, particularly in Karnataka, if
so, the details thereof,
(b) the quantum of areca nut imported from LDECs during the last three years, year-wise
and country-wise;
(c) whether the Government has undertaken any impact assessment on how such duty-
free imports are affecting prices, farmer incomes, and market stability in major areca-
growing regions;
(d) whether the Government proposes to review the zero-duty benefit for areca nut imports
from LDECs or introduce safeguards to protect domestic farmers, if so, the details
thereof, and
(e) the measures being taken to curb misdeclaration, smuggling and routing of areca nut
through LDECs to exploit duty exemptions?
ANSWER
वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री (श्री णिणिन प्रसाद)
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(SHRI JITIN PRASADA)
(a) & (b) : The quantity and value of arecanut imported from Least Developed Exporting
Countries (LDECs) during the last three years is as given below:
2022-23 2023-24 2024-25
Value (in Value Value (in
Quantity Quantity (in Quantity (in
Country Rs. (in Rs. Rs.
(in Tons) Tons) Tons)
Crores) Crores) Crores)
Bangladesh 10 0.29 2946 110.38 12155 447.76
Myanmar 32,228 883.10 3636 129.60 7569 278.24
Bhutan --- --- 156 0.43 1436 3.89
Sub total 32238 883.39 6738 240.41 21160 729.89
1Source: Directorate of Arecanut & Spices Development, Calicut, a subordinate office under
Ministry of Agriculture and Farmers Welfare.
The quantity of arecanut imported from LDECs (Bangladesh, Myanmar and Bhutan) during
2024-25 was 21,160 tonnes, which accounted for only about 1.5% of our domestic production
of 14 lakh tonnes. Moreover, imports from LDECs have declined from 32,238 tonnes in 2022-
23 to 21,160 tonnes in 2024-25, mainly due to the revision of the Minimum Import Price (MIP)
from ₹251 per Kg. to ₹351 per Kg. in February 2023.
(c) to (e) As per the data available with the Directorate of Arecanut and Spices Development, a
subordinate office under Ministry of Agriculture and Farmers Welfare, the annual average price
of arecanut during the last four years has remained above ₹40,000 per quintal and has not
shown any significant decline. Further, the Government has raised the Minimum Import Price
(MIP) of arecanut from Rs. 251/- per Kg. to Rs. 351/- per Kg. in February, 2023 to safeguard the
interest of domestic farmers, restrict the imports, prevent entry of inferior quality arecanut into
the domestic market and check destabilization of the domestic prices.
The Central Board of Excise & Customs has been verifying the ‘Rules of Origin’ to ensure that
arecanut produced in countries not covered under the Duty-Free Tariff Preference (DFTP)
Scheme is not imported through countries with DFTP, taking advantage of import duty
exemption under trade agreements. Further, the Customs Field Formations and Directorate of
Revenue Intelligence (DRI) under Central Board of Indirect Taxes & Customs (CBIC) keep
constant vigil for illicit transportation of arecanut into India through air/sea and land ports and
take appropriate action as per the provisions of extant laws to prevent illegal imports.
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