Mangaluru: US export ban hits areca leaf plate industry; manufacturers move Court for relief

Mangaluru: US export ban hits areca leaf plate industry; manufacturers move Court for relief

Mangalore Today News Network

Mangaluru, June 8, 2025: The areca leaf plate industry in Dakshina Kannada has been dealt a severe blow following a ban by the United States Food and Drug Administration (USFDA) on the import of areca nut-based plates and cups. The agency cited concerns over potential carcinogenic properties in areca nut leaves, triggering widespread disruption across the sector.

The sudden move has forced several manufacturers to slash production by half, sparking fears of job losses and major export setbacks. The industry, which has flourished for over two decades, is now staring at an uncertain future.

“Areca leaf plates from Dakshina Kannada, Shivamogga, and Tumkur districts have been routinely exported to the US and Europe. With the US as our largest buyer, the ban has had a direct impact. We’ve already reduced production by 50%,” said Avinash Rao, managing director and CEO of Agrileaf Export Pvt Ltd, based in Nidley, Belthangady.

According to industry estimates, of the 25 lakh plates produced monthly, nearly 12 lakh were exported to the US. The halt in shipments has created job insecurity for over 75,000 workers across Karnataka who depend on the industry. Several smaller units that relied heavily on US orders have already begun closing shop.

The potential economic fallout is significant. Industry leaders warn that Karnataka could face losses of up to ₹150 crore over the next three months if the situation persists. National losses may reach ₹250 crore, particularly if other major markets like Europe follow the US lead.

In response, several US-based importers of Indian areca leaf products have hired legal teams to contest the ban. “We are compiling scientific studies, including research from CFTRI, to challenge the carcinogenic claims. Exporters have joined hands to support the legal battle,” Rao said.

The controversy has reignited longstanding concerns surrounding areca nut, often associated with cancer. However, manufacturers insist that areca leaves—unlike the nut—are used only for eco-friendly, biodegradable packaging and pose no health hazard. They emphasize the need for comprehensive scientific validation to dispel these fears.

Dakshina Kannada MP K Brijesh Chowta has urged the central government to step in. In a letter to Union Commerce and Industry Minister Piyush Goyal, he called for urgent diplomatic intervention. “If left unaddressed, the ban could encourage other countries to follow suit, deepening the crisis and hurting farmers,” Chowta warned.

The future of Karnataka’s sustainable areca leaf plate industry now depends on legal action, scientific clarity, and swift policy support from the government.