Campco removes post-demonetisation cap on arecanut buying

The Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco) Ltd has withdrawn the cap on the purchase of arecanut with immediate effect.

To bring in stability in the arecanut market following demonetisation, the co-operative had limited the purchase of arecanut from a member to a maximum limit of ₹24,000 per week. The intention to fix a cap on the purchase was to prevent panic selling of the commodity by growers. Suresh Bhandary, Managing Director of Campco, told BusinessLine that 50 per cent of growers would have sold the commodity at a lower rate, if the unlimited purchase of arecanut was allowed post-demonetisation.

Now the co-operative has decided to withdraw the cap on the purchase of arecanut, as the market has been stabilised at the sellers’ end.

It had allowed the purchase of a maximum of 5 quintals of arecanut in a month from a member from January 9.

COMMENT NOW