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Areca nut export at halt in Phuentshogling

March 27, 2022
in Business
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More than ten truckloads of areca nuts have been stuck in Phuentshogling for about four days now. The exporters claim that the Indian customs office in Jaigoan did not allow the export of the consignment. 

As per the notification from the Ministry of Commerce and Industry in India, the import of areca nuts in any form is allowed if the price is over Rs 251 per kilogram. But imports are banned if the price is below the threshold. The notification came into effect in July 2018.

However, the Bhutanese exporters have been selling areca nuts for Nu 40 to 45 per kilogram to India which is much lesser than the required value of Rs 251 per kilogram.

Exporters claimed that they didn’t face any problems in the past.

“We are all frustrated here as we are not able to sell areca nut to India. Farmers keep calling us saying that they want to sell areca nuts to us. With the ongoing issue, we are not able to buy from them. So as of now, we had to stop buying from them,” said Singye Wangdi, exporter.

“It has been a few days since we couldn’t export areca nuts. The trucks are all parked here. We purchase them from our farmers and when we are not able to sell them, it affects us. We would remain grateful if the government could help us in exporting these loaded consignments,” said Rinzin Dorji, exporter.

“We have already paid to the farmers. Now, we are not able to export them. If we continue to keep the nuts here, it will rot. We will incur a huge loss,” said Budiman Rai, exporter.

“We have to pay Nu 35,000 to hire a ten-wheeler truck, Nu 20,000 for tipper trucks and Nu 15,000 for DCM as transportation charges from Lhamoidzingkha to Phuentshogling. In addition, we have to bear the expense of drivers. After all the expenditures, it’s disheartening that we are not able to export the areca nut,” said Jatak Bdr Sunuwai, exporter.

Following the incident, the exporters wrote to the concerned agencies seeking intervention.

Meanwhile, the Department of Trade said this is not a new problem. The issue surfaced ever since the notification came into effect. But the government has already held talks with the Indian officials on the matter. The Indian government will share a decision towards the end of this month as to whether consider Bhutanese exports at low prices.

As per Indian local media, the Indian government imposed a minimum import price on areca nuts at Rs 251 per kilogram to safeguard domestic farmers. The domestic producers had alleged that imports were increasing from neighbouring countries taking advantage of low import duty.

Sonam Penjor, Phuentshogling

Edited by Sonam Pem

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