Ban on Gutkha in Karnataka, what will be the impact on betel nut business and farmers?

The Karnataka government has banned the sale, manufacture, storage and shipment of pan masala containing gutkha and tobacco in the state for one year. After this decision, starting from August 10, 2026, betel nut farmers of the state are worried about their farming and earnings. Campco organization has said that this ban should not have any negative impact on the farmers doing farming properly.

 

The Food Department of Karnataka has issued this new order on August 10. After this order, now gutkha and pan masala containing tobacco and nicotine can neither be sold nor sent anywhere in the state. The government says that this decision has been taken to maintain the health of the people. This rule will be applicable in the entire state for one year due to which the sale of these things in shops and markets will be stopped.

 

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Concerns of farmers and CAMPCO

Betel nut is used in making gutkha and pan masala. For this reason, farmers fear that this may reduce the demand for betel nut. Central Arecanut and Cocoa Marketing and Processing Cooperative Limited (CAMPCO) is a large organization of farmers selling betel nut and cocoa crops for making chocolate. This organization works to sell the crops of farmers at the right price and protect their rights.

 

While giving its views on this ban, Campco has said that the government's decision is good for health but it should not have any negative impact on the farmers who are doing their betel nut farming in a completely correct and legal manner.

Effect of ban on farming and trade

The matter of relief in this matter is that the government has banned only tobacco and nicotine items. In this order of the government, no restriction has been imposed on the ordinary cultivation of betel nut or its legal trade. Campco organization says that people should not connect the ban of tobacco products with the cultivation of ordinary betel nut. The organization is continuously telling the government that farmers doing farming and business in the right manner should not suffer any loss from this decision.

 

The business of betel nut is considered very big in the agriculture of Karnataka. Its importance can be understood that in the first quarter of the year 2026-27, the government had received tax of about Rs 90.02 crore just by selling betel nut and its products.

Karnataka's big contribution across the country

According to data reports by the All India Areca Growers Association (AIAGA) and the Agriculture Ministry, about 71.56% of the areca nut grown in India is grown in Karnataka alone and the state's contribution to the country's total production is about 75.47%.

 

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Its importance can also be understood that in the first quarter of the year 2026-27, the government got a tax of about Rs 90.02 crore only by selling betel nut and its products and this tax has increased continuously in the last few years. This is the reason that after this ban, everyone is watching what effect it will have on the betel nut market.

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