On account of unabetting import of areca nut from neighbouring countries originating from countries such as Indonesia and Myanmar taking the advantage of low import duty provided under SAFTA and consequent representations from various stakeholders, the Department of Commerce has decided to increase the Minimum Import Price (MIP) on import of Areca nuts from existing ₹ 110/- per kg. to ₹ 162/- per kg. with immediate effect.

 The FSSAI has also advised its Field offices to stringently adhere to the quality specifications of areca nut before clearing the import consignments. This has been done with a view to prevent inferior quality areca nut from entering indian market and de-stabilise the domestic prices.

 The Customs Authorities have been advised to check the rules of origin with utmost care so as to ensure that areca nut grown in other countries are not imported through our neighbouring countries taking advantage of low import duty under SAFTA.

 The increase in the existing MIP on import of Areca nuts will be in the interest of the domestic farmers.

Minimum import price increase for arecanuts restricts low-duty import routes and tightens origin checks and enforces quality screening. Increase of the Minimum Import Price for arecanuts raises the import valuation floor and directs customs and food-safety agencies to enforce stringent quality checks and rigorous rules of origin verification to prevent routing through neighbouring countries under lower-duty arrangements, thereby addressing import circumvention and protecting domestic prices.