New Delhi: A high-level delegation from the Central Arecanut and Cocoa Marketing and Processing Cooperative Limited (CAMPCO) met Union Home and Cooperation Minister Amit Shah and Union Finance Minister Nirmala Sitharaman in New Delhi to raise key issues affecting arecanut growers and cooperative institutions.
The delegation comprised Sri Vishweshwara Hegde Kageri, Sri B.Y. Raghavendra, Sri Kota Srinivasa Poojary, Sri Araga Jnanendra, President of Adike Mahamandala, Sri S.R. Sathishchandra, President of CAMPCO, and Dr. B.V. Sathyanarayana, Managing Director of CAMPCO.
Concerns over illegal arecanut imports
During the meeting with Union Home and Cooperation Minister Amit Shah, the delegation highlighted the serious challenges confronting arecanut growers and cooperative organisations involved in the procurement and marketing of arecanut.
The delegation drew attention to the illegal and undervalued import of arecanut through various Harmonised System (HS) classifications, including the import of roasted arecanut under a new classification introduced in October last year.
They pointed out that these imports, particularly those entering the domestic market at lower prices, have adversely affected domestic arecanut prices and caused significant hardship to growers.
The delegation also highlighted concerns over duty-free and non-Minimum Import Price (MIP)-compliant imports entering the domestic market, stating that such practices undermine the government’s efforts to protect Indian arecanut farmers.
CAMPCO seeks ‘One Nation, One Tax’
CAMPCO President Sri S.R. Sathishchandra urged the government to implement a “One Nation, One Tax” framework in the true spirit of the Goods and Services Tax (GST).
He explained that cooperative institutions continue to face additional local taxes and levies in certain states, while private traders are often able to structure their operations to avoid similar burdens. This, he said, places cooperatives at a competitive disadvantage despite working in the interest of farmers.
He appealed for a uniform taxation system that would provide a level playing field for cooperative institutions across the country.
Responding to the concerns, Union Minister Amit Shah assured the delegation that the issues raised would be examined and appropriate action would be taken. He also reaffirmed the government’s continued support for cooperative institutions and their members.
GST on copper sulphate raised with Finance Minister
The delegation also met Union Finance Minister Nirmala Sitharaman to discuss the GST structure applicable to copper sulphate, a key ingredient used in Bordeaux mixture for protecting arecanut and other plantation crops from fungal diseases.
The delegation pointed out that copper sulphate attracts 18 per cent GST when used as a fungicide, whereas the same product is taxed at 5 per cent GST when used as a micronutrient.
They requested the Finance Minister to rationalise the GST rate on copper sulphate used for agricultural and plant protection purposes, noting that the higher tax increases cultivation costs for farmers.
During the meeting, the Finance Minister informed the delegation that the government is also focusing on preventing illegal import routes and strengthening vigilance at ports to curb the entry of improperly imported goods into the country.
The CAMPCO delegation expressed gratitude to both Union Ministers for giving a patient hearing to the concerns of arecanut growers and cooperative institutions and for assuring appropriate attention to the issues raised.