The Central Arecanut and Cocoa Marketing and Processing Co-operative Limited (CAMPCO) has expressed grave concern over the impact of imported roasted Arecanut on domestic growers.
In a formal appeal to the Union Minister of Commerce & Industry, CAMPCO has sought urgent intervention to protect the livelihoods of Indian farmers who rely on Arecanut cultivation.
The issue stems from roasted Arecanut being imported under HSN Code 20081920, labeled as a value-added product. This classification allows the product to bypass customs duties and enter Indian markets under misclassified categories, creating significant distortions in market dynamics.
Despite supply shortages, prices remain stagnant, undermining the efforts of Indian growers. CAMPCO has pointed out that these imported products, taxed at only 12% GST through Advance Ruling Licenses, are often mixed with local varieties.
This practice not only compromises quality but also leads to product rejection by buyers, resulting in declining prices for the Chali variety of Arecanut and threatening farmers’ incomes.
To address these challenges, CAMPCO has urged the government to implement specific measures. These include establishing a minimum import price for Arecanut in all its forms, including roasted and value-added varieties. Additionally, they have called for stricter monitoring mechanisms to prevent the misclassification of imports under HSN codes. Policies ensuring fair competition in the market are also deemed essential to safeguard domestic growers from unfair trade practices.
CAMPCO has also appealed directly to farmers, urging them to refrain from purchasing and mixing imported Arecanut with local varieties. This step, they argue, is critical to maintaining the quality of Indian Arecanut and protecting the collective interests of the agricultural community.
CAMPCO has reaffirmed its commitment to the welfare of farmers, emphasizing the need for united action to prevent further market disruptions and secure the livelihoods of Arecanut growers.
The cooperative has stressed the urgency of these measures, highlighting the pressing need to address market manipulations that harm the domestic agricultural sector. With timely government intervention and collective action from farmers, CAMPCO believes that the integrity and sustainability of Arecanut cultivation in India can be preserved.
