Betel nuts import jumps to Rs 110m

KAKADBHITTA, NOV 02 -

Nepal imported betel nuts worth a staggering Rs 110 million through Kakadvitta of Jhapa in the last one and half months. The import through the Mechi Customs Office for the whole last year was at Rs 151.4 million.

The surge in the import comes amid increasing cases of betel nut smuggling to India from Nepal. Recently, the police seized 73 sacks (3,700 kg) of betel nuts from Nakalbanda, Jhapa, that were being smuggled into India.

The illegal export of betel nuts to India from Nepal has been in practice for years. Traders import betel nuts from countries like Indonesia, Malaysia and Thailand, among others, and smuggle them to bordering Indian states.

The illegal trade had decreased significantly last year in the wake of increased police vigil. But the illicit practice is again flourishing after the transfer of DIG Surendra Bahadur Shah from the Eastern Region.

According to Mechi Customs Office, traders imported around 1,628 tonnes (108 containers) of betel nuts in the last one and half months. Mechi Customs Office Chief Umesh Shrestha said 1,072 tonnes (67 containers) were imported in mid September-mid October period and 656 tonnes (41 containers) during Dashain holiday.

Seeing the trend, customs officials predict a significant jump in betel nut imports this year. “If the trend continues, betel nut import will be a major contributor to the customs’ revenue collection,” said a source at the customs office.

The government has banned the export of betel nuts to India since last year. Before that, betel nut smuggling was rife in the region with the ‘support’ from police.

However, the smuggling came to almost standstill last year after DIG Shah took charge of the Eastern Region.

Sources say betel nut traders have started lobbying to ease police vigil after Shah’s transfer. In a bid to discourage betel nut import and control its illegal trade, the government had even increased the custom valuation of betel nuts . Customs duty was increased to Rs 750 per ton from Rs 450 earlier. “The import declined for some period following the review of the customs valuation, but it was short-lived,” added the source.

The police say they are doing their bit to control the smuggling. “However, ineffective government policy has made the police to be looked down upon,” said DSP Govinda Thapaliya.

According to customs sources, an Indian trader, Narayan Agrawal, has opened a letter of credit for the import of around 300 containers (4,800 tonnes) of betel nuts this year.

Source: The Kathmandu Post