The Uttara Kannada District Chamber of Commerce has sought a hike in excise duty on arecanut imported from Malaysia and Indonesia.
In a letter to Union minister of commerce Kamal Nath, chamber secretary V S Sonde said, a trade agreement allowed Nepal to import areca from these countries through the Indian ports.
The arecanut so imported was sold in India. More than 76,000 tonnes of arecanut was imported during 2006-2007 in this manner, he has said. This had resulted in a steep fall in the prices of arecanut in India.
Stating that the price of imported arecanut including the duty was Rs 49.42 per kg, Sonde said this price was not viable for arecanut growers in India.
“Last year the state government had come to the rescue of arecanut growers by announcing support prices of Rs 65 per kg on white arecanut and Rs 85 per kg on red arecanut. However, this was a temporary arrangement,” he said.
“The arecanut growers are in distress today with the fall in prices. Following that, the Centre should intervene and raise the duty,” he asserted on imported areca so that the prices are stabilised and growers in the country can get fair price,” he asserted.
