The additional tax burden has adversely impacted Campco’s business operations in Uttar Pradesh

The Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco) Ltd has asked the Uttar Pradesh government to remove ‘mandi’ tax on arecanut sold by cooperatives.

A Campco delegation, which met the Uttar Pradesh Chief Minister, Yogi Adityanath, in Lucknow, highlighted the difficulties being faced by cooperative organisations due to the levy of ‘mandi’ tax on arecanut trade in Uttar Pradesh.

It was explained that Campco, a farmer-owned multi-state cooperative with a farmer membership of over 1.50 lakh growers, has been severely affected by the present tax regime, which has increased the cost of legitimate trade and reduced its competitiveness against unorganised market operators.

Double taxation

Campco delegation — which included its President, SR Sathishchandra and Managing Director, BV Sathyanarayana — said arecanut procured from Karnataka is already subjected to APMC cess at the place of origin and is again subjected to ‘mandi’ tax in Uttar Pradesh, resulting in a double incidence of market fee on the same produce.

The additional tax burden has adversely impacted Campco’s business operations in Uttar Pradesh, leading to a substantial decline in turnover and compelling the closure of its Kanpur sales depot.

Campco requested the Uttar Pradesh government to consider removal of ‘mandi’ tax on arecanut, or alternatively grant exemption to cooperative institutions, besides providing relief from the double incidence of market fee. It was submitted that such measures would strengthen transparent and organised trade channels, protect the interests of lakhs of farmers, and contribute to higher revenue generation through legitimate business activities.

The Campco delegation was assured that the Uttar Pradesh government would extend all possible support to cooperative institutions and sympathetically examine the concerns presented.

Published on June 15, 2026