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Campco plea to safeguard arecanut farmers interests
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Friday, 14 August, 2026, 08 : 00 AM [IST]
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Nandita Vijayasimha, Bengaluru
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The Central Arecanut and Cocoa Marketing and Processing Co-operative Ltd (Campco), has taken note of the Karnataka government notification and the communication issued by the Commissioner, Food Safety and Drug Administration, Karnataka, concerning prohibition of products containing tobacco and nicotine in the State.
The State FSDA has stated that, in the interest of public health, stringent enforcement measures are being undertaken against products containing tobacco and nicotine. The action includes special inspections against the manufacture, storage, transportation, distribution and sale of gutkha, pan masala and other prohibited products containing tobacco and/or nicotine, said Satishchandra.
The government notification has been issued under Section 30(2)(a) of the Food Safety and Standards Act, 2006, prohibiting the sale and distribution of products containing tobacco and nicotine in Karnataka in the interest of public health. The notification is stated to remain in force throughout the State for a period of one year from the date of issuance, he added.
“We respect the Government’s objective of protecting public health and recognises the need for effective enforcement against prohibited tobacco and nicotine-containing products. At the same time, we urge the Government and the concerned authorities to ensure that the implementation of the notification does not adversely affect the interests of arecanut growers and the legitimate trade in arecanut”, noted Satishchandra.
Arecanut is an important plantation crop and a major source of livelihood for a large number of farmers in Karnataka and other parts of the country. Even as CAMPCO respects the government’s public-health objective, the company is of the view that there must be a clear distinction between arecanut as an agricultural commodity and products containing tobacco and nicotine. The enforcement of the notification should remain focused on the prohibited products and should not result in unintended consequences for arecanut growers or the legitimate arecanut trade, he pointed out.
Going further Satishchandra stated that arecanut growers should not be made to bear the consequences arising from the use or misuse of their agricultural produce in tobacco- or nicotine-containing products.
The significant economic contribution of the arecanut sector to Karnataka is also reflected in the data placed before Parliament. In reply to question raised by B.Y. Raghavendra, Member of Parliament, the Minister of State in the Ministry of Finance, Pankaj Chaudhary, stated, “Karnataka recorded the highest State-wise GST collection from the sale of arecanut and arecanut-based products among the States. Reports furnished by the Ministry of Finance shows, Karnataka’s GST collection stood at Rs 172.62 crore in FY 2021-22, Rs 266.82 crore in FY 2022-23, Rs 326.57 crore in FY 2023-24, Rs 313.16 crore in FY 2024-25 and Rs 379.34 crore in FY 2025-26. Further, Karnataka recorded Rs 90.02 crore during Q1 of FY 2026-27.
This underlines the substantial economic significance of arecanut and arecanut-based trade in Karnataka and reinforce the need to ensure that enforcement measures directed against tobacco and nicotine-containing products do not adversely affect the legitimate arecanut trade or the livelihood of arecanut growers, he said.
The interests of farmers engaged in the cultivation and legitimate marketing of arecanut need to be duly protected while implementing public-health measures, said Satishchadra.
Campco urges the Government and enforcement authorities to ensure that the implementation of the prohibition is confined to products covered by the notification and does not result in any indirect restriction on arecanut as an agricultural commodity or its legitimate cultivation, procurement, processing and trade. It also appeals for a clear and unambiguous enforcement framework ensuring legitimate businesses and arecanut farmers are not subjected to unnecessary difficulties.
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