In what seems like a repeat of past challenges, the export of betel nut via Samtse has come to an abrupt halt. The clearance certificate from India’s Directorate General of Foreign Trade expired last month, forcing exporters to divert their shipments once again. While prices have remained high, traders are starting to feel the pressure.
The road to India via Samtse had only reopened for betel nut exports last year, after a three-year-long halt. But now, that route has once again gone quiet.
The export clearance that allowed transportation of the nut through the Samtse gate expired last month, and its renewal is still pending.
The halt has left many exporters, who trade via Samtse, with no option but to send their shipments through Phuentshogling. The reroute means extra paperwork, longer travel time, and an added cost of 18,000 ngultrum per truck. That cost is eventually passed on, affecting the final price of doma in the market.
Despite the setback, the season has started strong for growers. Prices have already hit 45 ngultrum per kilogramme at the FCBL depot in Samtse, an unusually high rate for the start of the season. But traders say the yield isn’t promising.
“The price of betel nut has reached around Nu 45 per kilogramme this season. After deducting our expenses and profit margins, farmers are earning a minimum of Nu 35 kilogramme. However, production isn’t very promising this year—there’s less doma, and even the young saplings aren’t growing well,” said Ashik Rai, a betel nut dealer from Khandrothang.
“The production of betel nut has been decreasing every year. Climate change could be one reason, and squirrels are also damaging the nuts. That might explain the lower yield this season. Still, the price is good, which is a relief for farmers,” said Raj Kumar Gurung, a betel nut dealer from Bukay.
Officials at the FCBL depot in Samtse said they have observed a steady decline in production over the years. So far this season, the depot has exported around 630 metric tonnes of the nut.
Regarding the export clearance, they said both the office and the exporters had anticipated the expiry and submitted a renewal application to the Directorate General of Foreign Trade (DGFT), India, as early as February this year. They added that they are also in discussion with the Department of Agricultural Marketing and Cooperatives to facilitate the clearance process for exports via Samtse.
The FCBL office noted that allowing exports through Samtse could further push up prices, which are already seeing a strong rise this season. Currently, more than 12 Indian exporters are registered with the FCBL Samtse depot. Last year, they exported over 1,300 metric tonnes of betel nut to India.
Passang Dorji, Samtse
