CAMPCO urges Karnataka govt to shield arecanut trade from tobacco ban enforcement
The Central Arecanut and Cocoa Marketing and Processing Co-operative Limited (CAMPCO) has requested the Karnataka government to ensure that the recent prohibition on the sale and distribution of products containing tobacco and nicotine is applied strictly to items covered by the official notification. The co-operative has asked that the enforcement measures do not indirectly affect the cultivation, procurement, processing, and trade of arecanut, which is a legal agricultural commodity.
In a statement issued on Wednesday, CAMPCO president S.R. Satishchandra said the co-operative took note of the government notification issued on Monday and a subsequent press release from the Commissioner of Food Safety and Drug Administration on Wednesday. The state government has announced stringent enforcement actions against products containing tobacco and nicotine in the interest of public health. These actions include special inspections targeting the manufacture, storage, transportation, distribution, and sale of gutkha, pan masala, and other banned products that contain tobacco or nicotine.
Satishchandra stated that CAMPCO respects the government's objective of protecting public health and supports effective enforcement against tobacco- and nicotine-containing products. However, he urged the authorities concerned to ensure that the implementation of the notification does not harm the interests of arecanut growers or the legitimate trade in arecanut.
He emphasised that 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. He stressed that a clear distinction must be made between arecanut as an agricultural commodity and products that contain tobacco and nicotine. The enforcement of the notification should remain focused on the prohibited products and should not lead to unintended consequences for arecanut growers or the legitimate arecanut trade.
Highlighting the economic significance of arecanut, Satishchandra cited a recent reply from the Union Finance Ministry to a question raised by Member of Parliament B.Y. Raghavendra regarding GST contributions from arecanut. According to the data, Karnataka recorded the highest state-wise GST collection from the sale of arecanut and arecanut-based products. The figures show that Karnataka's GST collection from this sector stood at ₹172.62 crore in 2021-22, ₹266.82 crore in 2022-23, ₹326.57 crore in 2023-24, ₹313.16 crore in 2024-25, and ₹379.34 crore in 2025-26.
Satishchandra said these figures underline the substantial economic importance of arecanut and arecanut-based trade in Karnataka. They 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 added that the interests of farmers engaged in the cultivation and legitimate marketing of arecanut need to be duly protected while implementing public health measures.
