Bengaluru/Davanagere, 29 August 2026: Karnataka’s decision to completely prohibit the production, storage, distribution, transportation and sale of gutka and pan masala containing tobacco or nicotine has triggered concern among arecanut growers, with traders reportedly becoming cautious about buying the crop.
Growers say the ban has created uncertainty in the arecanut market, with both fresh and dry arecanut prices witnessing a decline. The immediate concern is that traders and cooperative societies may hesitate to purchase and stock the crop because of fears of losses.
According to arecanut growers’ representatives, dry arecanut was being traded at around ₹55,000 per quintal before the ban, while fresh arecanut was around ₹7,050 per quintal. Following the government’s decision, fresh arecanut has fallen to around ₹6,200 per quintal, while new dry arecanut is around ₹44,000 and old dry arecanut around ₹48,000 per quintal, they said.
B.K. Shivakumar, president of the Dakshina Kannada Arecanut Marketing and Processing Cooperative Society (DAMCOS), said the immediate challenge was not merely the fall in prices but the reluctance of traders to purchase the produce.
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Growers are particularly worried about the stock already stored by small and marginal farmers in the expectation that they could sell it when prices improved. With buyers now becoming cautious, farmers fear that they may be forced to sell at significantly lower prices.
Arecanut is cultivated across 144 taluks in Karnataka, according to growers’ representatives. The crop also contributes significantly to the State’s tax revenues, with GST collections from the sector and related trade cited at around ₹398 crore. Karnataka’s arecanut is also marketed in northern Indian States.
Growers have said they do not oppose measures aimed at preventing tobacco and nicotine addiction. However, they want the government to consider the economic impact of the ban on arecanut farmers and introduce appropriate regulations instead of an outright prohibition.
They have also questioned why other addictive substances and activities, including cigarettes and liquor, should not be addressed with equal urgency. Some growers have alleged that the tobacco industry’s influence could be affecting policy decisions concerning arecanut, though such claims would require independent verification.
Prashanth Baruve, secretary of CAMPACO, said the government should consider the interests of arecanut growers before implementing measures that could affect the market. “Growers are already facing uncertainty. If cooperative societies and traders stop purchasing and stocking arecanut, farmers will be pushed into a serious crisis,” he said, urging the government to reconsider the ban and instead frame appropriate regulations.
Protest in Davangere
Meanwhile, an arecanut growers’ federation’s three-day padayatra in Davangere district against the gutka ban concluded on Friday. Protest had begun on August 26 simultaneously across the Davangere, Harihar, Honnali, Jagalur, Mayakonda and Channagiri Assembly constituencies.
Former Minister M.P. Renukacharya and BJP leader Madal Mallikarjun led protesters who attempted to lay siege to the Assistant Commissioner’s office in Davangere. Police detained the protesters during the demonstration.
Also Read | Karnataka Bans Gutkha, Tobacco and Nicotine Products for One Year
Protest leaders alleged that the government was acting contrary to earlier assurances that the interests of arecanut growers would be protected. They also criticised the Health Minister’s statements on the ban and demanded that Chief Minister Siddaramaiah remove the Minister from the Cabinet.
Protests underline a growing tension between the government’s public-health objective of curbing tobacco and nicotine consumption and concerns among farmers whose livelihoods depend on arecanut cultivation.
Keywords
Karnataka gutka ban, arecanut growers, arecanut price, arecanut farmers, fresh arecanut price, dry arecanut price, Citizen News Puttur