Capt. Chowta flags harmful impact of zero duty arecanut imports from LDCs on Indian farmers

Large-scale arecanut imports from Least Developed Countries (LDCs) such as Bhutan, Myanmar, and Sri Lanka have been adversely affecting India’s domestic arecanut market, severely impacting farmers in key producing regions, Capt. Brijesh Chowta, Dakshina Kannada MP, said in the Lok Sabha on Monday.

Raising the matter under Rule 377 on the first day of the Winter Session of Parliament, Capt. Chowta said that those countries currently enjoy zero customs duty under India’s Duty-Free Quota-Free (DFQF) preferential trade scheme — a provision originally intended to support LDC economies and now being misused in a way that harms Indian farmers.

The zero-duty window has resulted in low-cost, inferior-quality arecanut flooding the Indian market, destabilising prices and pushing cultivators into distress. Between September 2023 and August 2024, Bhutan accounted for 57% of all arecanut import shipments, followed by Myanmar at 39%, and Sri Lanka at around 2%.

India is fully self-sufficient in arecanut production, having produced around 14 lakh tonnes pan India in 2023–24, with Karnataka alone contributing nearly 10 lakh tonnes. Yet, despite this domestic abundance, large volumes of zero-duty imports continue to enter the country, creating a steep and unfair price disparity that erodes the competitiveness of farmers in major growing regions such as Dakshina Kannada, Shivamogga, Udupi, and Chikkamagaluru, the MP said.

Reports indicate that India imported approximately 30,271 tonnes of arecanut during the first eight months (April–November) of 2023–24 — a volume that stands in stark contrast to domestic production and signals an avoidable reliance on imports despite clear self-sufficiency, he said.

Capt. Chowta pointed out that normal arecanut imports attract 100% basic customs duty, but the DFQF exemption nullifies this protection entirely. This loophole has led to price crashes, market instability and deep economic anxiety among lakhs of cultivators whose livelihoods depend on the crop.

A release from the MP’s office said that along with raising the matter in Parliament, Capt. Chowta has also submitted detailed representations to Union Finance Minister Nirmala Sitharaman and Union Commerce and Industry Minister Piyush Goyal, urging them to exclude arecanut from DFQF benefits and reinstate normal Customs duty on imports from LDCs. He emphasised that while India remains committed to supporting LDC economies, such concessions must not compromise the economic security of Indian farmers.

“The DFQF exemption has unintentionally opened the gates for arecanut dumping, causing severe loss to our farmers, especially those in Dakshina Kannada who are already facing price instability. I urge the government to immediately exclude arecanut from DFQF benefits to safeguard the livelihoods of lakhs of cultivators in Dakshina Kannada and other arecanut-growing regions,” he said.