KARACHI, June 23: Betelnuts (Chaliya) worth $60 million or Rs3.6 billion was consumed by Pakistanis during last eighteen months. Bad as they may be, the worst is that all of them were either smuggled into the country or came through official channels but on 'mis-declaration.'
Looking at the huge sum that goes out of the country for illegal or misdeclared import, one could easily say that Pakistanis appear to be one of the biggest consumers of betelnuts (Chaliya) in at least South Asian region.
Besides betelnuts, Pakistanis are also among the major consumers of tea. An advertisement run by a tea blending company boasts no less than 1.4 million cups of that company's tea alone, is being consumed every hour. How much would it amount to if tea cups of all blending companies are put together, could be anybody's guess.
As for betelnuts there had been no import of the commodity for the last eighteen months but yet it was freely available throughout the country. A leading importer of Jodia Bazar told Dawn, on request of anonymity, that presently betelnut prices are being quoted in world markets at $800 per ton which means that 50,000 tons cost around $40 million per annum.
The same will be $60 million or Rs 3.6 billion for 18 months imports. He said the question is that from where the demand of around 50,000 tons betelnuts (per annum) was being met during this long period?
For sure it was being smuggled or made its way through official channels on mis-declaration because the commodity was having high customs duty of 25 per cent which was quite lucrative for sharing high profits there on, he replied.
The import of betelnuts came to a sudden halt during the later months of 2002, following a row between customs authorities and couple of importers over the quality and fitness of the commodity for human consumption. As a result the customs officials detained some of the containers.
As the issue became public the subsequent consignments of betelnuts were also detained by the authorities. According to importers, presently 2000 containers each with a load of around 25 tons of betelnuts are lying at the Karachi Port.
Ever since there had been status quo as both the sides were not ready to change their position over the criteria of checking or inspecting of betelnuts quality. The customs authorities had been insisting that the lab test should be carried out by the Hussain Ebrahim Jamal Institute of Chemistry, University of Karachi.
The importers are of the view that PCSIR Laboratories are better equipped to deal with such matters. As a result of long dual many importers went bankrupt and some even died on coming under tremendous pressure and sustaining huge financial losses, importers said.
The prolonged crisis resulted in a halt of betelnuts imports through official channels. In the past around 35,000 tons of betelnuts used to enter the country through official channels and an estimated quantity of 15,000 tons was smuggled to meet the total demand of around 50,000 tons per annum.
However, ever since the importers have stopped importing betelnuts the entire quantity of 50,000 tons was making its way through illegal channels. This did not only resulted in loss of government revenue but there is also no guarantee that what quality of betelnuts is reaching the end consumer which was the contentious issue between importers and customs authorities.
Owing to this dispute import of betelnuts through official channels came to an end. However, the rationalization of duty rates on import of betelnuts from 25 per cent to 5 per cent and reduction of withholding tax from 6 per cent to 2 per cent is expected to revive the import through official channels.
According to market reports betelnut prices have already started coming down. Before the budget it was being quoted between Rs200 to Rs225 per kg but now it is available at Rs150 to Rs175 per kg.
But there was a greater need that both the sides should also come in agreement over lab testing because there should be no compromise, what so ever, when public health was in question. The government should put conditions of fumigation, quarantine and lab test (certification) from exporting countries end as well.
The government could only ensure consumption of quality betelnuts if it was imported officially because nothing could be done when the commodity reaches end consumer through other channels, particularly smuggling.
