Market price of arecanut up 21% after govt hikes MIP

DGFT increases MIP by more than 50% to Rs 251 a kg

Domestic growers of arecanut are saying that the government's decision to increase the minimum import price (MIP) of the commodity has already been factored into its selling price in the market. Industry representatives, however, say that the MIP is expected to increase further. The government's decision comes at a time when growers are facing pricing pressure due to cheap imports.

The  Director General of Foreign Trade (DGFT) in a notification said that the arecanut MIP will be increased to Rs 251 a kilogram from Rs 162.

The development comes in response to a demand by domestic arecanut cultivators