Daijiworld Media Network- Mangaluru
Mangaluru, June 8: The areca leaf plate industry in Dakshina Kannada has suffered a major setback after the United States Food and Drug Administration (USFDA) banned the import of areca nut-based plates and cups, citing potential carcinogenic properties in areca nut leaves. This sudden move has forced several local manufacturers to cut production by half, raising concerns over jobs and export losses.
The industry, which has been thriving for over two decades, is now facing uncertainty. "Areca nut plates from Dakshina Kannada, Shivamogga, and Tumkur districts were regularly exported to the US and Europe. With the US being our largest market, the ban has directly impacted our business. We’ve slashed production by 50%," said Avinash Rao, managing director and CEO of Agrileaf Export Pvt Ltd, based in Nidley, Belthangady.
According to industry sources, of the 25 lac plates produced each month, nearly 12 lac were shipped to the US alone. The halt in exports has already led to job insecurity among the over 75,000 workers depending on the industry across Karnataka. Smaller enterprises that relied solely on US exports have begun shutting down operations.
Industry insiders estimate that the state may face losses amounting to ?150 crore in the next three months if the situation continues. The total projected national loss could touch ?250 crore, especially if other major markets like Europe follow the US's lead.
In response to the crisis, US-based importers of Indian areca nut plates have engaged legal teams to challenge the ban. “We are preparing to present scientific reports, CFTRI research, and other data to refute the claims of carcinogenicity. A team of exporters has come together to support this legal effort,” Rao added.
This controversy has reignited the longstanding stigma against areca nut, often labelled a cancer-causing agent. Producers argue that areca leaves, unlike the nut itself, are used purely for eco-friendly, biodegradable packaging and pose no health risks. However, only comprehensive scientific validation can counter these allegations.
In the wake of mounting losses, Dakshina Kannada MP K Brijesh Chowta has written to Union Minister for Commerce & Industry Piyush Goyal, urging immediate intervention. “Diplomatic engagement is essential to protect farmers and the industry. If not addressed now, other countries may impose similar bans, deepening the crisis,” Chowta warned.
The future of Karnataka’s eco-friendly areca leaf plate industry now hinges on legal redress, scientific clarity, and swift government support.