Cooperative urges Karnataka government to distinguish legitimate arecanut trade from banned tobacco- and nicotine-containing products
The Central Arecanut and Cocoa Marketing and Processing Co-operative Ltd (Campco) has urged the Karnataka government to ensure that its crackdown on tobacco- and nicotine-containing products does not adversely affect arecanut farmers or the legitimate trade in the crop.
The appeal follows a Karnataka government notification and communication from the state Food Safety and Drug Administration (FSDA) ordering stricter enforcement against products containing tobacco and nicotine.
The measures include special inspections targeting the manufacture, storage, transportation, distribution and sale of gutkha, pan masala and other prohibited products containing tobacco or nicotine.
Campco managing director Satishchandra said the cooperative supports the government’s public-health objective but stressed that enforcement must clearly distinguish arecanut as an agricultural commodity from finished products containing prohibited substances.
“We respect the Government’s objective of protecting public health,” Satishchandra said, while urging authorities to ensure that implementation of the notification does not unintentionally harm arecanut growers or legitimate businesses involved in the crop’s trade.
The Karnataka government’s prohibition has been issued under Section 30(2)(a) of the Food Safety and Standards Act, 2006, and is set to remain in force across the state for one year from the date of issuance.
Campco said arecanut is a major plantation crop and an important source of livelihood for farmers in Karnataka and elsewhere in India. Farmers, it argued, should not be held responsible for the subsequent use or misuse of their agricultural produce in tobacco- or nicotine-containing products.
The cooperative is also pointing to the economic significance of the sector. Data presented in Parliament showed that Karnataka recorded the country’s highest state-wise GST collections from the sale of arecanut and arecanut-based products.
According to figures cited by Campco, Karnataka’s GST collections from the segment increased from ₹172.62 crore in FY2021-22 to ₹379.34 crore in FY2025-26. The state recorded another ₹90.02 crore during the first quarter of FY2026-27.
Campco said the figures underline the scale of the legitimate arecanut economy and reinforce the need for a targeted enforcement framework.
The cooperative has therefore called on the government to ensure that the prohibition remains confined to products explicitly covered by the notification, without creating indirect restrictions on Arecanut cultivation, procurement, processing or legitimate trade.
It has also sought clear and unambiguous enforcement guidelines so that farmers, traders and other legitimate businesses do not face unnecessary disruption during inspections.
The issue puts Karnataka’s public-health enforcement drive alongside the economic interests of one of its major plantation sectors. For Campco, the distinction is critical: crack down on prohibited tobacco products, it argues, but do not make Arecanut farmers pay the price.