Mangaluru: The eco-friendly areca leaf plate industry in Dakshina Kannada has been dealt a severe blow following the US Food and Drug Administration’s (USFDA) ban on areca nut-based cups and plates. The ban, based on concerns over potential carcinogenic compounds in areca leaves, has thrown the thriving export sector into turmoil.
For over two decades, areca plates from Dakshina Kannada, Shivamogga, and Tumkur districts have been exported to global markets, with the US being the largest importer. “We’ve had to scale back production by 50% following the sudden ban,” said Avinash Rao, CEO of Agrileaf Export Pvt Ltd in Belthangady.
Nearly 12 lakh of the 25 lakh plates produced monthly were destined for the US. With exports halted, over 75,000 workers in Karnataka’s areca plate sector are now facing job insecurity. Smaller firms reliant solely on American orders have begun shutting down.
Industry insiders warn that if the crisis continues, Karnataka alone may suffer a ₹150 crore loss over the next quarter. Nationally, the projected damage could reach ₹250 crore—especially if European markets impose similar restrictions.
In a bid to reverse the ban, Indian exporters and US-based buyers are collaborating with legal teams, armed with CFTRI and scientific data that differentiate areca leaves from the health risks linked to the nut.
MP K Brijesh Chowta has written to Union Minister Piyush Goyal, urging diplomatic intervention before the issue escalates globally. The industry’s fate now depends on legal, scientific, and political efforts.
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