A delegation from the Central Arecanut and Cocoa Marketing and Processing Cooperative (CAMPCO) met Uttar Pradesh Chief Minister Yogi Adityanath in Lucknow on June 12 to raise concerns over the impact of Mandi Tax on arecanut trade and seek relief for cooperative institutions operating in the state.
The delegation comprised CAMPCO President S.R. Sathishchandra and Managing Director Dr. B.V. Sathyanarayana. During the meeting, the cooperative leaders explained that the levy of Mandi Tax in Uttar Pradesh has become a major burden on organized cooperative trade, particularly for arecanut procured from Karnataka.
CAMPCO informed the Chief Minister that arecanut purchased in Karnataka is already subjected to APMC cess or market fee at the source. However, when the same produce enters Uttar Pradesh, it is again taxed under the state’s Mandi Tax system, resulting in a double incidence of market fee.
According to the cooperative, this additional burden has increased the cost of legitimate trade and weakened the competitiveness of organized cooperatives compared to unregulated market operators.
The delegation pointed out that the present taxation structure has adversely affected CAMPCO’s business operations in Uttar Pradesh. The cooperative stated that its turnover in the state has witnessed a significant decline over the years due to the additional tax pressure. It also noted that the difficult business environment eventually forced the closure of its Kanpur sales depot.
Seeking relief, CAMPCO urged the Uttar Pradesh government to either remove Mandi Tax on arecanut altogether or grant exemptions to cooperative institutions engaged in the trade. The delegation also requested measures to avoid the double taxation of produce already taxed at the point of origin.
CAMPCO emphasized that easing the tax burden on cooperatives would encourage transparent and organized trade channels, strengthen farmer-owned institutions, and safeguard the interests of more than 1.5 lakh arecanut growers associated with the cooperative.
The delegation further argued that promoting legitimate business activities through cooperatives would also contribute to higher and more stable revenue generation for the state.
Responding to the concerns, Chief Minister Yogi Adityanath assured the delegation that the Uttar Pradesh government would sympathetically examine the issues raised and extend all possible support to cooperative institutions.
During the interaction, the Chief Minister also expressed interest in CAMPCO’s value-added initiatives, particularly its chocolate manufacturing operations at Puttur in Karnataka. He conveyed his desire to visit the CAMPCO Chocolate Factory in the future to understand the cooperative’s role in farmer welfare, value addition and rural economic development.
The meeting was also attended by CAMPCO Lucknow Branch Manager Ravishankar and Shivaprasad, officiating personal assistant to Member of Parliament Kota Srinivas Poojary, who assisted in coordinating the discussions.