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The Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco) has appealed to the Union Finance Minister to reduce GST on arecanut and the inputs used in its cultivation.
In a letter to Union Finance Minister Nirmala Sitharaman, President of Campco A Kishore Kumar Kodgi requested the government to reduce GST on arecanut from 5 to 2 per cent.
Kodgi told businessline that such a move would encourage more and more farmers to sell through cooperatives. Stating that it would also mitigate the prevalent issue of tax evasion within informal trade networks, he said a reduction in GST would provide a competitive edge to the cooperatives to survive in such markets.
Campco requested the Minister to reduce GST on copper sulphate from 18 per cent to 5 per cent. Copper sulphate solution is used as a fungicide in arecanut cultivation. Apart from arecanut, copper sulphate is also used in coffee and rubber plantations. A reduction in GST to 5 per cent would align copper sulphate with other fertilizers and would be of great help to farmers with small holdings, he said.
Curbing illegal imports
Urging the need to make advanced agricultural tools such as carbon fibre pole more affordable to farmers, Kodgi requested the government to bring down Customs Duty on it. Carbon fibre poles are used in activities such as spraying of fungicides and for harvesting of the crop. At present, it attracts a Customs Duty of 48 per cent.
The cooperative also requested to strengthen measures to curb illegal imports of arecanut and pepper, and suggested that such illegally imported quantities be incinerated to prevent health risks.
Emphasising the urgent need for these measures to protect farmers’ livelihoods, ensure market integrity and to promote sustainable agriculture, Kodgi said, “Illegal imports compromise our market and endanger public health. We must burn these illegally imported goods to prevent them from re-entering the market.”
The letter also requested the Minister to fund research on the medicinal benefits of arecanut and to combat yellow leaf disease in arecanut plantations.
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