Imported roasted arecanut being 'misclassified', could disrupt market: CAMPCO

Mangaluru (Karnataka) Jan 25 (PTI) Mangaluru-based multi-state cooperative, Central Arecanut and Cocoa Marketing and Processing Cooperative, expressed concern on Saturday over the challenges faced by domestic arecanut growers due to the import of roasted arecanut into India.

CAMPCO has sent a letter, dated January 25, to Union Minister for Commerce and Industry Piyush Goyal seeking his intervention immediately.

"Imported roasted arecanut is being classified under HSN code 20081920 as a value-added product, allegedly bypassing customs duties through misclassification," CAMPCO wrote in the letter.

This practice, CAMPCO asserted, disrupts market equilibrium, denying domestic growers fair prices for their produce despite supply shortages.

According to CAMPCO, the imports are facilitated through Advance Ruling Licences, which attract only 12 per cent GST.

The imported arecanut is being mixed with locally produced arecanut and sold, compromising product quality, it alleged.

"Such practices may lead to rejection by bulk buyers, affecting the reputation and demand for arecanut in both domestic and northern markets," added CAMPCO.

Consequently, prices of locally grown arecanut are likely to plummet, significantly impacting growers’ incomes, pointed out the organisation.

To address these issues, CAMPCO has appealed to the government to set a Minimum Import Price (MIP) for all arecanut imports, introduce a unified HSN code for all forms of arecanut to prevent misclassification and strengthen regulatory measures, and frame policies to ensure fair prices for domestic growers.

Additionally, CAMPCO has urged growers to avoid purchasing imported arecanut or mixing it with local produce to safeguard the interests of the farming community. The organisation remains committed to protecting the welfare of arecanut farmers. PTI COR JR SSK ROH