CAMPCO President S.R. Satishchandra has called for a unified national tax system for arecanut to eliminate disparate state levies and curb the detrimental impact of unregulated imports on domestic growers.

  • CAMPCO advocates for 'One Nation, One Tax' to replace fragmented state mandi taxes and APMC cess.
  • Concerns raised over the mixing of imported arecanut with domestic produce, distorting market prices.
  • A major international conference on arecanut and human health is scheduled for January 2027 in Mangaluru.

The Central Arecanut and Cocoa Marketing and Processing Co-operative Ltd. (CAMPCO) has formally urged the Union government to adopt a streamlined 'one nation, one tax' principle for arecanut. This move is intended to safeguard domestic growers from the volatility of inter-state trade costs and the pressures of an uneven tax landscape.

Addressing the media, S.R. Satishchandra, President of the inter-state cooperative operating across Karnataka and Kerala, highlighted the financial burden imposed by the Uttar Pradesh government's mandi tax. He argued that such levies significantly increase the cost of transporting and trading arecanut across state lines, hindering the efficiency of the market. Furthermore, he called upon the Karnataka government to abolish the APMC cess to ensure a uniform pricing structure across the country.

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Why This Matters

BozokMedia analysis shows that the arecanut sector is currently caught in a pincer movement between internal bureaucratic taxation and external market flooding. When different states apply varying taxes, it creates artificial price hikes and encourages tax evasion, which ultimately hurts the primary producer—the farmer. By unifying the tax regime, the government can ensure a transparent price discovery mechanism.

The cooperative has already initiated high-level diplomatic efforts, with meetings held with Uttar Pradesh Chief Minister Yogi Adityanath and Union Finance Minister Nirmala Sitharaman. The goal is to create a policy environment where domestic growers are not penalized by the very systems meant to regulate their trade.

The lack of a unified tax structure on agricultural produce like arecanut creates market fragmentation that benefits middlemen while eroding the profit margins of the actual growers.

Beyond taxation, CAMPCO is sounding the alarm on the unchecked inflow of imported arecanut. Satishchandra pointed out a critical issue: the mixing of imported nuts with domestic produce. This practice not only obscures the traceability of the product but also crashes domestic prices, as cheaper imports are passed off as local goods.

The cooperative has sought the intervention of Union Home Minister Amit Shah to strengthen import monitoring and enforce stricter regulations to prevent misclassification. They argue that without stringent enforcement, domestic growers will continue to lose their competitive edge in their own home market.

Looking forward, CAMPCO is preparing for a landmark two-day international conference starting January 16, 2027, at Hotel Ocean Pearl in Mangaluru. This event will gather global researchers and stakeholders to discuss scientific advancements and value addition. Notably, the conference will tackle the 'arecanut and human health' debate to counter negative campaigns surrounding the consumption of the crop.

Did You Know?: Arecanut is a vital cash crop for millions of small-scale farmers in the Western Ghats region of India, playing a pivotal role in the rural economy of Karnataka and Kerala.

Frequently Asked Questions

Q1: What is the primary demand of CAMPCO regarding taxation?
CAMPCO wants the Union government to implement a single national tax for arecanut, removing state-specific mandi taxes and APMC cess to lower trade costs.

Q2: How do imported arecanuts affect local farmers?
Imports often get mixed with domestic produce and sold as local, which leads to price drops and a lack of transparency in the market.