Yogi govt assures no ban on arecanut, review of cess on Karnataka growers

Uttar Pradesh Chief Minister Yogi Adityanath has confirmed that he will not ban arecanut in Uttar Pradesh. He met a delegation led by CAMPCO Chairman and assured them that he would positively look into the matter of cess levied by the UP government.

On Tuesday he met a delegation led by The Central Arecanut and Cocoa Marketing and Processing Co-operative Limited (CAMPCO) Chairman. CAMPCO said that The Chief Minister has confirmed that he will not ban arecanut in Uttar Pradesh.

He also assured he would stand by the Areca Growers and positively respond to all their problems.

Arecanut growers have said farmers in Karnataka are already facing the problem of APMC cess of 1.5 per cent levied by their home state. This is over and above 5 per cent GST. The Uttar Pradesh government has levied 0.5 per cent mandi tax (market tax).

They said mandi tax prevailed in states like Maharastra which was withdrawn after the implementation of GST.

The growers already represented to Karnataka Government to remove APMC Cess and also approached Uttar Pradesh Government to remove mandi tax.

"While we are yet to hear any positive news from the Karnataka Government, Uttar Pradesh Chief Minister responded positively," said a representative of the Arecanut Growers Association.

It may be noted, of the overall arecanut production of 700,000 tonnes, Karnataka alone produces around 500,000 tonnes.