Uttar Pradesh Chief Minister Yogi Adityanath has confirmed that his government will not ban arecanut. He met the delegation led by Central Arecanut and Cocoa Marketing and Processing Co-operative Limited (CAMPCO) chairman on Tuesday and said he would look into the cess problem that the growers are facing.
"Yogi Adityanath assured that he would stand by the Areca growers and positively respond to all their problems," CAMPCO said in a release.
Arecanut growers from Karnataka are already facing the problem of APMC cess of 1.5 per cent imposed by the state. This is over and above the 5 per cent GST. Uttar Pradesh government, on the other hand, has also imposed a 0.5 per cent mandi tax (market tax).
Arecanut growers noted that mandi tax, which prevailed in states like Maharastra, was withdrawn after the implementation of GST.
Growers in Karnataka have already approached the state government to remove APMC cess.
"While we are yet to hear any positive news from Karnataka, Uttar Pradesh Chief Minister responded positively," said an Arecanut Growers Association representative.
It may be noted, of the around seven lakh tonnes, Karnataka produces around five lakh tonnes of Arecanut.