In News: A Lok Sabha member from Shivamogga district in Karnataka, urged the Centre to levy a hefty import duty on arecanuttocheck 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.
