Arecanut

In News: A Lok Sabha member from Shivamogga district in Karnataka, urged the Centre to levy a hefty import duty on arecanut to check falling prices in the domestic market.

• In September 2022, the central government allowed the import of 17,000 tonnes of green (fresh) arecanut from Bhutan without minimum import price (MIP).
• Crop loss – About 35-40 per cent of the crop has been affected in 2022 – highest crop loss since 2013

About Arecanut:

• The cultivation of arecanut is mostly confined to 28º north and south of the equator.
• It grows well within the temperature range of 14ºC and 36ºC and is adversely affected by temperatures below 10ºC and above 40ºC.
• Arecanut is capable of growing in a variety of soils
• June – December is found to be the optimum.

Its production:

• Karnataka produces around 80 per cent of the country’s arecanut,
• Arecanut is considered a horticulture crop in Karnataka, a commercial crop at the national level and a dry fruit at an international level.

• Average yield of different varieties of arecanut vary between 10-20 quintals per acre (0.4 hectare).
• MIP on arecanut was first introduced in 2012 to restrict unabated import and prevent entry of inferior quality arecanut into the Indian market, thereby destabilising the domestic prices.
• In the last three years, import of arecanut has taken place mostly from Sri Lanka and Indonesia.
• However, this time 17,000 tonnes is being allowed to be imported from Bhutan alone.

Threats:

• Large areas under the crop have been damaged by yellow leaf disease, blast disease and fruit rot disease, especially in Shivamogga, Dakshina Kannada and Chikkamagaluru districts.

Minimum Import Price (MIP):

• MIP is the rate below which no imports are allowed.
• Imports without MIP or at low rates threaten the domestic prices and lead them to crash.

Source: DTE