A delegation of Central Arecanut and Cocoa Marketing and Processing Cooperative Ltd (CAMPCO), Mangaluru met Uttar Pradesh Chief Minister Yogi Adityanath in Lucknow on Friday, and requested him to lift ‘mandi tax’ on arecanut trade being imposed by the northern State.

The delegation was led by S. R. Satishchandra, president of the multi-State cooperative institution of Karnataka and Kerala. Its Managing Director B. V. Sathyanarayana was also present.

They highlighted the difficulties being faced by cooperative organisations due to the levy of ‘mandi tax’ on arecanut trade in Uttar Pradesh.

Kanpur sales depot closed

The CAMPCO pointed out that arecanut procured from Karnataka is already subjected to APMC cess/market fee 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. It informed the Chief Minister that the additional tax burden has adversely hit its business operations in Uttar Pradesh, leading to a substantial decline in turnover and compelling the closure of its Kanpur sales depot.

The cooperative requested Mr. Adityanath to consider removal of ‘mandi tax’ or alternatively grant exemption to cooperative institutions. It was submitted that such measures would strengthen transparent and organised trade channels, protect the interests of lakhs of arecanut farmers, and contribute to higher revenue generation through legitimate business activities.

Mr. Satishchandra said in a statement that the Chief Minister responded positively and assured that the government would extend all possible support to cooperative institutions and sympathetically examine the concerns presented.

During the interaction, the Chief Minister expressed keen interest in CAMPCO’s activities and its value-added ventures. He conveyed his desire to visit CAMPCO’s chocolate factory at Puttur on a convenient future date to understand the co-operative’s contribution towards farmer welfare, value addition and rural economic development, Mr. Satishchandra said.

The CAMPCO has a membership of over 1.50 lakh growers.