Campco president Kishore Kumar Kodgi has urged Prime Minister Narendra Modi to take steps to curb the import of arecanut.
Due to heavy imports into the country through various means, the domestic market for arecanut is being affected, he said.
In reply to a query from Dakshina Kannada MP Nalin Kumar Kateel in Parliament, the Minister of State for Finance Pankaj Chaudhary had replied that in the whole arecanut market, only around 15% of arecanut legitimately comes under the tax range.
“The cost of cultivation has increased to a great extent as the rate of copper sulphate, fertilisers and labour cost is increasing day by day. Arecanut is imported into the country legally as well as illegally through various ports in the country,” he said.
"What is the need to import arecanut when there is sufficient production in the country," the Campco president asked.
Curbing imports will not only benefit domestic farmers but also the government exchequer, he said.
He said the Centre had increased the minimum import price (MIP) for arecanut to 251 per kg in July 2018.
The government should revise it depending on the present cost of cultivation, which in turn will boost the arecanut price, and the domestic market will also improve, which will bring huge relief to the arecanut farmers, he said.