Union Government lacks estimate of arecanut traded outside tax network

Union Minister says that arecanut does not contribute a significant share in Customs revenue

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The Union Government does not have an estimate of the quantity of arecanut traded outside the tax network.

Replying to unstarred questions by Dakshina Kannada Member of Parliament Nalin Kumar Kateel in the Lok Sabha on April 4, Union Minister of State for Finance Pankaj Chaudhary said that the Directorate of Arecanut and Spices Development under the Union Ministry of Agriculture and Farmers Welfare has reported that around 15% of arecanut is traded by cooperatives such as the Central Arecanut and Cocoa Marketing and Processing Cooperative Ltd (CAMPCO), Mangaluru; the Totagar’s Cooperative Sales Society Ltd (TSS), Sirsi; the Malnad Areca Marketing Cooperative Society Ltd (MAMCOS), Shivamogga; the Tota Utpannagala Marata Sahakara Sangha (TUMCOS), Channagiri, and 85% of the arecanut is traded by private traders. A good quantity of arecanut is traded through APMCs established in arecanut growing areas.

Referring to the smuggling of arecanut from Myanmar, the government said that 21 cases of outright smuggling were booked by the Customs Preventive Formations (CPF) Moreh & Pallel and Divisional Preventive Force (DPF) of Imphal division during 2021-22 till February 2022.

“The field formations and Directorate of Revenue Intelligence (DRI) under the Central Board of Indirect Taxes and Customs (CBIC), Department of Revenue, keep constant vigil. On detection of cases of attempted smuggling, action is taken in accordance with the Customs Act, 1962,” the Minister said adding that arecanut does not contribute a significant share in Customs revenue.

Replying to unstarred questions by Mr. Kateel and Member of Parliament from Kasaragod (Kerala) Rajmohan Unnithan in the Lok Sabha on April 5, Union Minister of Agriculture and Farmers Welfare Narendra Singh Tomar said that Karnataka is the largest producer of arecanut in India, accounting for 78.64% if the production in the country. Kerala accounts for 7.33% of production in India.

He said that the Yellow Leaf Disease (YLD) in arecanut plantations has been noticed in all districts of Kerala, and six taluks of Karnataka (Koppa, N. R. Pura, Sringeri, Mudigere, Sullia, and Madikeri).