In a significant move to regulate the import of areca nuts, the Indian government has amended its import policy. The Ministry of Commerce and Industry, through the Directorate General of Foreign Trade (DGFT), issued Notification No. 43/2025-26 on October 15, 2025. This amendment targets areca nuts classified under specific ITC (HS) codes, imposing prohibitions on imports below a minimum CIF (Cost, Insurance, and Freight) value to protect domestic markets and ensure quality standards.
Key Changes in Import Policy
The notification updates the import conditions for areca nuts under Chapter 8 and Chapter 20 of the ITC (HS) 2022 Schedule-I. It introduces a minimum import price threshold to prevent the influx of cheaper, potentially substandard products.
Amendments for Raw Areca Nuts (ITC HS Code 08028090)
Under this code, labeled as “Areca Nut — Other,” imports are now classified as “Prohibited” with the following conditions:
- Imports are permitted freely if the CIF value is Rs. 351/- or above per kilogram.
- This minimum import price does not apply to imports by 100% Export Oriented Units (EOUs), units in Special Economic Zones (SEZs), or under the Advance Authorization Scheme.
Amendments for Roasted Areca Nuts (ITC HS Code 20081991)
For “Other: — Other roasted nuts and seeds,” the policy remains “Free” overall, but with targeted restrictions:
- Import of roasted areca nuts with a CIF value less than Rs. 351/- per kilogram is “Prohibited”.
- Imports of all other roasted nuts and seeds continue to be “Free“.
- The minimum import price restriction for roasted areca nuts does not apply to 100% EOUs, SEZ units, or imports under the Advance Authorization Scheme.
Impact and Rationale Behind the Notification
The primary effect of this notification is to prohibit the import of roasted areca nuts under ITC HS Code 20081991 if their CIF value falls below Rs. 351/- per kilogram. This measure is likely aimed at supporting local farmers and processors by reducing competition from low-cost imports, which could undermine domestic prices and quality control.
Areca nuts, commonly used in India for cultural, medicinal, and commercial purposes, have faced fluctuating market dynamics. By setting a floor price, the government seeks to stabilize the sector and encourage value-added processing within the country.
Exceptions and Compliance
Exemptions for EOUs, SEZs, and Advance Authorization Scheme imports ensure that export-focused industries are not hampered. Importers must comply with the updated policy conditions, and violations could lead to penalties under the Foreign Trade (Development & Regulation) Act, 1992.
This notification, approved by the Commerce and Industry Minister, comes into effect immediately and aligns with the Foreign Trade Policy (FTP) 2015-2020, as amended.
Conclusion
Stakeholders in the areca nut trade, including importers, exporters, and domestic producers, should review their operations to align with these new rules. For detailed guidance, refer to the official DGFT notification or consult trade experts.
Keyword: Areca Nuts Import Policy
Meta Description: India amends import rules for areca nuts under ITC HS Codes 08028090 and 20081991, prohibiting low-value imports below Rs. 351/kg to protect domestic markets.