ARECANUT is an important commercial crop in India and finds a place in all religious, social and cultural functions in India. Cultivation of Arecanut is mostly confined to States of Karnataka, Kerala and Assam,but the consumption is spread all over the country. India is considered as the largest Arecanut producing country in the world.
The total acreage under cultivation is 264000 hectares and the annual production estimated at 313000 metric tones,with Karnataka and Kerala accounting for nearly 72 percent of total production. Over six million people are engaged in arecanut cultivation, processing and trade.More than 85 percent of the area under cultivation is made up of small and marginal holdings.
A sudden marketing crisis in the year 1970-71, when prices registered a marked fall which caused considerable concern to the growers, was the genesis for the setting up of this Co-operative Venture (what popularly is called The CAMPCO). Growers had been thrown into panic with the prices coming down by half of what was prevailing till 1970-71 season.
Various measures were thought of for organized marketing management and leaders among growers sat together to find a way out. State Government of Karnataka, on the advice of an Expert Committee, recommended organizing a Central Agency in the Public or Co-operative sector. With the blessings and active support extended by the State Governments of Karnataka and Kerala, the CAMPCO was registered on 11th July 1973 under sec.7 of the Karnataka Co-operative Societies Act read with sec.4(2)of the Multi State Co-operative Societies Act 1984. Through perseverant efforts of far sighted , dedicated and resourceful leaders,with the cooperation and assistance of equally dedicated growers under the guidance of the State Governments of Karnataka and Kerala, this institution took giant strides forward and has turned into a tower of strength to the areca growing community in the country.
The CAMPCO has been functioning effectively with the main objectives of
- Procuring Arecanut and Cocoa grown by member cultivators and if necessary, from other growers on an agency basis or on outright purchase basis
- Sale of Arecanut and Cocoa and their products to the best advantage of members and also to advance loans to members on the pledge of goods and to do all other things necessary to carry out the objective.
- To promote and develop Areca and Cocoa cultivation,marketing and processing.
The area of operation of this cooperative for procurement and processing of Arecanut and Cocoa extends to the States of Karnataka and Kerala,but for the marketing activity, the area has been extended to the whole country. Arecanut purchase operations were extended to Assam,Andaman and Goa but in recent years purchase operations in Assam had to be closed due to disturbances.
Starting with its Head office at Mangalore in coastal Karnataka, the CAMPCO began with a handful of procurement centers in Karnataka and Kerala. The Campco adopted a safe policy for purchasing and marketing the commodity and maintaining standards in quality assiduously with the dedicated cooperation of a network of diligent officers and workers. The society achieved success by leaps and bounds,stood the brunt of changing trends,market recessions and upheavals,glut in the market and even national calamities in the marketing field for more than two and half decades. Confidence has gained among the growers for areca cultivation as an economically viable and comfortable proposition.
The co-operative encouraged growers to take-up Cocoa cultivation as an inter crop in the latter half of the 70’s as a supplemental crop. This grew up to become a large scale operation with good results. A sudden withdrawal by the buyers of Cocoa from the procurement operations due to crash in the international market came as a shock to cultivators. Karnataka and Kerala governments enthused at this stage the CAMPCO to enter on the scene to rescue the farmers from distress.CAMPCO willingly took up the responsibility to enter the cocoa market and performed a savior’s role.As a strategy for survival in the International scene the CAMPCO played a major role in establishing a name for Indian Cocoa, which hitherto had not been achieved. It procured Cocoa Pods from growers and adopting scientific processing methods to market standards,released dry cocoa beans matching in quality in the world market to that of Ghana,Brazil and other leading Cocoa cultivating nations. With a view to creating a permanent demand and a steady market for the beans,Campco established a Chocolate Manufacturing factory at Kemminje village in Puttur Taluk in Dakshina Kannada District adopting foreign technical collaboration in chocolate making.The factory was set up in 1986 at an initial investment of RS.116.7million and a licensing capacity to produce 8800 metric tones.The factory also entered into technical cooperation venture with NESTLE (India) Ltd,for diversifying product brands.It has been producing a variety of products – semi finished items like Cocoa Mass, Cocoa Butter and Cocoa Powder and finished products in moulded line, count line, Chocolate drink etc. .CAMPCO chocolate has gained extensive market popularity in India.
THE CENTRAL ARECANUT & COCOA MARKETING AND PROCESSING CO-OPERATIVE LTD.,
‘VARANASHI TOWERS’, MISSION STREET, MANGALORE – 575 001.
|1||Full Name||:||THE CENTRAL ARECANUT AND COCOA MARKETING AND PROCESSING CO OPERATIVE LIMITED.
|2||Status||:||A CO-OPERATIVE ORGANISATION REGISTERED UNDER THE MULTI STATE COOPERATIVE SOCIETIES ACT,
|3||Area of Operation||:||KARNATAKA AND KERALA STATES FOR MEMBERSHIPS. NO LIMITS FOR MARKETING
|4||Main Objective||:||PROCUREMENT / PROCESSING / MARKETING OF ARECANUT AND COCOA / COCOA PRODUCTS / RUBBER / PEPPER.
|5||Date of Registration||:||11/07/1973
|6||Date of Commencement of Business
|7||Authorised Share Capital||:||Rs.55.00 Crores
|8||Paid up Share Capital||:||Rs. 43.69 Crores as on 31/03/2017
|9||No. of Individual Grower Members||:||1,02,386|
|10||No. of Member Cooperatives||:||
|11||Deposits as on 31/03/2017||:||
|12||No. of Branches and Depots||:||
160 (All Over India)
THE CAMPCO CHOCOLATE FACTORY AT PUTTUR
|14||Annual Gross Turnover
|₹ 1546.47 Crores
₹ 1591.43 Crores
₹ 1616.93 Crores
|15||Bankers||:||1. SYNDICATE BANK – Consortium leader
2. CANARA BANK
3. STATE BANK OF INDIA
4. INDIAN OVERSEAS BANK
5. HDFC Bank
|16||Sanctioned drawing limit with Bankers||:||
Rs.200.00 Crores as on 31/03/17
|17||Net Profit during the period as on 31/03/2017
- Details of Areca Procurement/Sales for the period from 01/04/2016 to 31/03/2017
|Qty. in Qtls.||Value in Lakhs|
- Details of Cocoa Procurement during the period from 1/4/2016 to 31/03/2017
Qty. in Qtls. and Rupees in lakhs
|WET BEANS||DRY BEANS|
|Consumption at Factory||0.00||0.00||34002||7667.35|
- Details of Rubber procurement during the period from 1/4/2016 to 31/03/2017
|Qty. in Qtls.||Value in Lakhs|
- Details of Copper Sulphate Purchase and Sales from 1/4/2016 to 31/03/2017
|Qty. in Qtl
|Value Rs. in Lakhs
- Date of Entry into Chocolate Market : MARCH / APRIL 1987.
- Present Sale of Chocolates ( 2016-17) : ₹ 184.30 CRORES PER YEAR(Both consumer and Industrial products)
- Details of Chocolate Production/Sales from 1/4/2016 to 31/03/2017
|Qty. in MT||Value in Lakhs|
|Production Including NESTLE & CIL||13328.14||—|
|Sales of Chocolates (Including Sales to NESTLE)||8316.40||18350.92|
ACTIVITIES OF CAMPCO
The Central Arecanut & Cocoa Marketing and Processing Co-operative Limited popularly known as “CAMPCO” was born and registered on 11th July 1973 under Section 7 of the Karnataka Co-operative Societies Act 1959 read with Section 4(2) of the Multi Unit Co-operative Societies Act 1942. The Institution is presently functioning under the Multi State Cooperative Societies Act 2004 having 1,00,000 farmer members and assists them in marketing their produce like Areca (Supari) Rubber,Cocao,Pepper etc. The following are its main objectives:
a) To procure Arecanut, Cocoa,Rubber & pepper of the Members and if necessary, from other Growers on agency basis or on outright purchase basis.
b) To arrange for sale of Arecanut, Cocoa, Rubber & Pepper and their products to the best advantage of the Members and also to advance loans to Members on the pledge of goods and to do all other things necessary to carry out the objectives.
c) To promote and develop Areca, Cocoa, Rubber & Pepper Production, Marketing and Processing. Cocoa Procurement and Processing objective has been included during 1979.
The area of operation of this Cooperative extends to the States of Karnataka and Kerala. However, for the purpose of Marketing of Arecanut, Cocoa, Rubber & Pepper and their products, the whole of the Country has been included.
ORGANISATION AND MANAGEMENT
The Management of CAMPCO vests with a Board of Directors. There are 17 Directors who are elected as per the provisions of Bye-Laws including Managing Director. Sri. S.R.Sathishchandra is the President of the Cooperative, Sri Shankar Narayana Bhat K. is the Vice-President and Sri. M. Suresh Bhandary is the Managing Director. In order to speed up the activities of the Cooperative, the Board has framed one Executive Committee consisting of 7 Members of the Board and one Business Committee consisting of 9 Members of the Board.
The Executive Committee and the Business Committee will devote more time to stabilize and decide about the financial and business transactions of the Institution. The composition of these Committees are as follows:
|3. Managing Director||
3. Managing Director.
4. Two Directors from each State
|4. Two Directors from each State|
|6. The Senior most Officer of ARECA Marketing
|7. The Head of CAMPCO CHOCOLATE FACTORY.|
PROCUREMENT & MARKETING
CAMPCO entered the Arecanut market in November 1973 and within a short period of its entry into the Market, the Cooperative was able to bring the market to the pre-fall level and by its judicious and effective procurement and sales policy, and efficient business administration, CAMPCO has been able to assure the Growers of an economical price for their produce. Thus, by the operations of CAMPCO, the Growers are now getting a very remunerative price for their
produce, and CAMPCO has been able to stabilize and maintain the Arecanut market at a very economical level, thus improving the economic conditions of Areca Growers. CAMPCO started procurement initially in 5 Centers only and today, it operates through 146 Procuring Centers throughout the States of Karnataka and Kerala.
CAMPCO operates through 12 Sales Depots in almost all the States in India at different places.
Comparative figures of Purchase & Sales for the last 5 years (April to March) are furnished below.
|Qty. in Qtls.||Value in Lakhs||Qty. in Qtls.||Value in Lakhs|
MEMBERSHIP AND SHARE CAPITAL
The Membership and Share Capital of this Cooperative as on 31/03/2017 is stated below.
|CLASS OF SHARES||NO. OF MEMBERS||SHARE AMOUNT|
|Arecanut Marketing Societies||560||67,19,000|
|Other Societies and Cooperative Banks||4||1,03,000|
We are collecting deposits from members. The details of deposit held as on 31/03/2017 is as follows.
(Rs. in lakhs)
The Working Capital requirement of CAMPCO is met by a Consortium of Bankers with Syndicate Bank as Lead Bank and provided total Working Capital of Rs.200.00 Crores to this Cooperative. The details are furnished below.
(Rs. in lakhs)
|State Bank of India||7000.00|
|Indian Overseas Bank
RESERVE FUND & OTHER FUNDS
The Funds held in the Cooperative as at the end of 31/03/2017 is furnished here below.
Rs. in lakhs
RESERVE FUNDS & OTHER RESERVES
CAMPCO CHOCOLATE FACTORY
The Factory is equipped with fully automatic and sophisticated machineries with annual licensed capacity of 22000 M.T. The total investment at Factory is around Rs.78.95 Crores out of which the funds invested in the machinery is Rs.59.75 Crores.
PRODUCTION AND SALE
At present, the following products are manufactured: PRODUCT LIST ENCLOSED
- A) CONSUMER PACKS B) INDUSTRIAL PACKS
|2||CREAM||17 gm.||2||COCOA BUTTER|
|3||TURBO||15 GMS||3||COCOA POWDER|
|4||MEGABITE||14 Gms.||4||MILK /DARK CHOCOLATE|
|6||WINNER (Jar)||400 Gms||6||CHOCO CHIPS-MILK / PLAIN|
|8||Dark Tan||25gm||8||MILK CHOCOPASTE|
|9||MELTO / /Strabery Éclair||Jar & Pouch||9||PREMIUM CHOCOPASTE|
|10||KRUNCHOS||17 Gm.||10||CHOCODIP MILK / PLAIN|
|11||Assorted Gift Box||₹ 50 & ₹ 100|
|13||FUNTAN WITH MINT||70Gms|
We here below furnish the details of Sale of Finished goods and Semi-finished goods for last 5 years as follows.
|YEAR||CONSUMER PACKS||INDUSTRIAL PACKS|
Rs. in lacs
Rs. in lacs
2012-13 4132.30 7773.70 5031.52 10280.44
2013-14 4705.88 8726.41 6562.78 11587.97
2014-15 3514.07 7238.19 6376.73 12921.98
2015-16 2706.03 5643.16 7021.68 14120.26
2016-17 2510.41 4865.44 5805.99 13466.18
At present CAMPCO is having its own Chocolate Marketing team and the present set up is as follows:
- REGIONAL OFFICES
|5||DELHI (ZONAL OFFICE))|
- AREA SALES OFFICES
CHOCOLATE MIXING PLANT
With a view to encourage the Cocoa procurement from the Cocoa growers for producing value added products and in order to maintain the growth and sustainability we have made further investment of Rs.21.00 Crores by installing a new chocolate mixing plant at Chocolate Factory Puttur, from M/s.Carle & Montanari, Italy who are the pioneers in the field of supplying chocolate mixing plants.
VAPOUR ABSORPTION MACHINE (VAM)
In line with our efforts to save electricity cost, we have installed one more unit of VAM (Vapour Absorption Mechanism) in order to reduce the consumption of electricity by using steam and thereby the total savings in consumption of electricity is 18 lakh Units per year.
We are also doing bulk Chocolate supply to Lotte India Ltd. Practicing the principle of cooperation between Cooperatives, we had already made a tie up arrangement with KMF & MILMA for production of Chocolate Products and have now recently tied up with SAANCHI, Madhya Pradesh for sale of our Products in their Outlets. Our aim is to flood the Market with CAMPCO Products.
We have also started supplying Chocolates to Defence.
We have ventured into exporting of 7-10 Containers of Drinking Chocolate to African Countries every month, for which there is an overwhelming response and is well accepted by them.
CAMPCO Chocolate Factory is certified with FSSC 22000 (Food Safety Management System), ISO 14000 (Environmental Management System) and OHSAS 18000 (Occupational Health & Safety Assessment Series) .
Fossil fuel burning would raise the temperature resulting in disastrous climate change. As a small step towards reducing this bad effect our institution has installed a wind mill at a cost of Rs.656.88 lakhs at Hoovinahadagali Taluk which will produce about 30 lakh units of Electricity which is a pollution free green energy. The electricity is being used at our Chocolate Factory which will considerably reduce the energy costs.
Keeping in mind, a better environment and also to be self sufficient, we have now commenced our second project with the installation of 2 more Wind Mills with a capacity of 0.85MW each at Chikkodi in Belgaum manufactured by M/s.Gamesa Wind Turbines Pvt. Ltd. at a total cost of Rs.10.36 Crores which is now taking care of 90% of our power requirement at Factory. With these installation our Factory’s 70% power requirement will be met by Green energy.
AGREEMENT WITH M/S. NESTLE INDIA LIMITED.
Entire range of M/s.Nestle Chocolate products were produced at CCF upto 31/12/2000. Now they are manufacturing required quantity of Eclairs and White Chocolates in our Factory. We are also supplying Cocoa Butter & Powder required for their Ponda Factory.
MOBILE PROCUREMENT UNIT
Service at the door-steps of the Farmer has always been our goal. We have started a mobile procurement unit at Theerthahalli to concentrate the interior areas where there is no adequate transportation facility. The mobile van on a notified day will go to a notified place and facilitate the Arecanut Grower to sell his produce.
RESEARCH AND DEVELOPMENT
A new Research and Development wing has been opened and price behaviour analysis is being taken up as the first step. On 20/5/1998 a Research and Development Trust with Dr.D.Veerendra Heggade, Dharmasthala as its President and CAMPCO President as the Managing Trustee has been established. ARDF in association with CAMPCO and Vivekananda Engineering College has successfully conducted KRISHI YANTRA MELA-I 2009 & KRISHI YANTRA MELA-II 2012 respectively.
Recently the domestic market for Arecanut is facing problems due to heavy import from neighbouring countries such as Sri Lanka, Indonesia, Thailand and Malaysia. As per information gathered, 60,000 metric tons of Arecanut is imported into India annually through legal and illegal ways. Even inferior quality goods are imported and used for Gutkha manufacturing. This has caused concern to the Areca growing community in India.
Import of Arecanut is made under the following categories.
- Import after Duty payment
- Import under Advance Licence
- Import on job work basis
- Import on DPEB and DFRL basis.
Arecanut is imported into India under job work basis on the pretext of tannin extraction and export of the same. Under this deal, traders adopt under-valuation and are exporting tannin extracts prepared from other naturally rich sources and not Areca tannin since it is not economically viable. The inferior quality Arecanut imported under the above scheme is used for Gutkha manufacturing. Hence it is proposed that the Central Plantation Crops Research Institute (CPCRI) should be authorized to test the quality of Arecanut imported and also the workability of Tanin extraction/any other value added product from Arecanut so as to curb the entry of inferior quality Arecanut, which is harmful for human consumption and misuse of import facilities.
INITIATIVES AND DEVELOPMENTS
After succeeding in the stabilization of Arecanut prices, CAMPCO started catering to the other requirements of the Areca farmers. The next step was to start activities in the field of cocoa procurement, processing and marketing. Cocoa, an intercrop with Arecanut, was a source of supplementary income to the farmers. Because of the vagaries of the market, the returns from cocoa came down and CAMPCO stepped in to check the trend. It started purchasing and processing the cocoa and this resulted in the establishment of a Chocolate Factory in Puttur in 1986. Cocoa has thus been added in the name of CAMPCO.
The processing of Arecanut was the next in the line of attention, which gave birth to a Small Consumer Packaging Unit at Yeyyadi, Mangalore. CAMPCO has introduced sale of supari in small packets of 1 kg, 5 kg and 10 kg in the State of Gujarat so as to reach the consumers directly. There is a very good response and the business in this activity is showing an increasing trend. There are proposals to implement a similar activity in Maharashtra, Madhya Pradesh and Rajasthan too.
CAMPCO has constituted a Research and Development Wing, which has a tie-up with SDM Ayurveda College, Udupi. They have developed medicinal products on an experimental basis such as Pooga Syrup and Pooga Trim, which will soon be marketed after obtaining proper licence.
Due to the seasonal, geographical and quality variations the Arecanut market is always uncertain. However, the CAMPCO Ltd., with its vast experience and holding capacity is able to bring some extent of market stability. Even now, the Areca market is in the fold of traditional system and is striving hard to venture into new trading regimes. There is a need to educate the farmers in the fair trade practices and co-operative spirit as a means for greater achievements.
As a part of diversification of activities, we have already commenced Rubber procurement by identifying potential areas. Additional collection centres will be opened in a phased manner.
CAMPCO made its advent as a Saviour of Arecanut farmers. With the dynamic leadership of the President, the Board of Directors and the management, unstinted support of the CAMPCO’s Grower Members, exemplary and selfless services rendered by the staff and the co-operation extended by the traders and purchasers together with the support offered by the Areca and Cocoa growers, the Institution has acquired a unique status in the country. It is hoped that the collective endeavour of the Management, the Staff and particularly the Areca and Cocoa farmers will enable CAMPCO to emerge as a leader in the nation’s Co-operative Sector.