Central Arecanut and Cocoa Marketing and Processing Co-operative Limited (CAMPCO), on Wednesday, urged the State government to ensure that the implementation of the prohibition on the sale and distribution of products containing tobacco and nicotine is confined to products covered by the relevant notification and does not result in any indirect restriction on arecanut as an agricultural commodity or its legitimate cultivation, procurement, processing, and trade.

In a statement here, CAMPCO president S.R. Satishchandra said the co-operative has taken note of the government notification issued on Monday and the subsequent press release of the Commissioner of Food Safety and Drug Administration on Wednesday, concerning the prohibition of certain products containing tobacco and nicotine in the State. The government has said stringent enforcement measures are being undertaken against products containing tobacco and nicotine in the interest of public health. 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.

Stating that the co-operative respects the government’s objective of protecting public health and effective enforcement against products containing tobacco and nicotine, Mr. Satishchandra said the authorities concerned should ensure that the implementation of the notification does not adversely affect the interests of arecanut growers and the legitimate trade in arecanut.

Major livelihood source

He said, “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. However, 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.”

GST contribution

Quoting the Union Finance Ministry’s recent reply on GST contribution from arecanut to a question by Member of Parliament B.Y. Raghavendra, Mr. Satishchandra said Karnataka recorded the highest State-wise GST collection from the sale of arecanut and arecanut-based products. Karnataka’s GST collection 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.

These figures underline 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. The interests of farmers engaged in the cultivation and legitimate marketing of arecanut need to be duly protected while implementing public health measures, the CAMPCO President said.

Published - August 12, 2026 07:41 pm IST