A USFDA ban on areca leaf products has rocked Karnataka’s eco-friendly plate industry, halving production and threatening over 75,000 jobs. Exporters and MPs demand urgent action.
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Eco Dreams on Hold: USFDA Ban Triggers Crisis in Karnataka’s Areca Leaf Plate Industry
By Meera Narayan | South India Trade Correspondent | June 10, 2025
Mangaluru, Karnataka — A flourishing symbol of India’s sustainable entrepreneurship is now in peril. The US Food and Drug Administration (USFDA) has imposed a sudden ban on the import of areca nut-based plates and cups, citing unproven carcinogenic risks. The move has sent shockwaves through Karnataka’s thriving areca leaf plate industry, particularly in Dakshina Kannada, where the eco-friendly product has not only become a global export but also a rural employment lifeline.
With over 12 lakh units exported monthly to the US alone, industry insiders estimate a potential loss of ₹150 crore in Karnataka over the next quarter. The impact, however, stretches far beyond spreadsheets — over 75,000 workers, many of them rural women and small-scale producers, face imminent job insecurity as production is slashed by half.
“This came out of nowhere. We’ve had no previous alerts, no warnings. Production at our Nidley unit is already down 50%,” said Avinash Rao, CEO of Agrileaf Export Pvt Ltd, one of India’s leading areca exporters.
Karnataka’s Areca Leaf Plate Industry Reels After USFDA Ban Sparks Export Crisis
What Sparked the Ban?
The USFDA reportedly acted on preliminary concerns that areca nut leaf products may carry carcinogenic traces, despite no conclusive evidence to suggest that the leaves—unlike the nut—pose any health risk when used as serving plates.
While areca nut (commonly chewed in various forms) has well-documented links to oral cancers, industry experts argue that the fibrous leaf sheaths used to manufacture plates are entirely distinct and chemically inert. “This is a confusion between consumption and packaging,” Rao emphasized.
The decision has not only impacted direct exports but also cast a cloud over potential bans from Europe and other markets that often align with US food safety trends.
Grassroots to Global: Industry at Risk
Over two decades, the areca leaf industry has evolved from a rural innovation into a global sustainability model. Units in Shivamogga, Tumkur, Belthangady, and Sullia churn out over 25 lakh plates monthly, with buyers ranging from US restaurant chains to eco-retailers across Europe.
Now, smaller enterprises, especially those dependent solely on North American orders, are already shuttering.
“We had to let go of ten workers last week. We just can’t pay wages without export orders,” said Jyothi Poojary, a homegrown manufacturer in Karkala, who runs a 20-woman cooperative.
Legal Pushback Begins
In an encouraging turn, US-based importers of Indian areca products have hired legal teams to challenge the ban. Backed by a coalition of Indian exporters and sustainability advocates, they’re assembling a scientific dossier, featuring studies from the Central Food Technological Research Institute (CFTRI) and global toxicology panels, to contest the carcinogenic claim.
“We’re not sitting idle. This ban threatens an entire ecosystem — from forest farmers to green brands. The science must speak louder than suspicion,” said Rao.
Political Mobilization: A Diplomatic Test
Dakshina Kannada MP K Brijesh Chowta has taken the issue to Delhi. In a strongly-worded appeal to Union Commerce Minister Piyush Goyal, Chowta highlighted the economic and diplomatic urgency of the matter.
“If the government does not intervene, we risk a domino effect. Europe could follow. This is not just a trade issue — it’s a blow to India’s green economy,” he warned.
The Ministry of Commerce has acknowledged receipt of the letter and is said to be examining possible representations to the US Trade Representative (USTR) through India’s commercial attaché in Washington D.C.
Not Just About Profits — It’s About People
Unlike large manufacturing sectors, the areca plate industry is highly decentralized. Farmers supply naturally fallen areca palm sheaths, which are then pressed into plates using low-energy machines, often by cooperatives or SHGs (Self-Help Groups). The industry is biodegradable, water-efficient, and largely female-driven.
“We are not polluters, we are protectors of the planet,” said Savita Bhat, who manages a 40-member unit in Sullia. “We gave up plastic. Now they want us to give up our future?”
The Science at the Heart of the Debate
While WHO’s International Agency for Research on Cancer classifies areca nut as carcinogenic when chewed, there is no globally recognized study linking non-consumable use of areca palm leaves to cancer or food contamination.
Experts from NITK Surathkal and IISc Bengaluru have reportedly joined the effort to publish findings that reinforce the leaves’ neutral chemical footprint.
Conclusion: A Ban That May Backfire
As climate diplomacy becomes a centerpiece of global trade, India’s eco-packaging sector is often held up as an example of innovation in sustainability. But the USFDA’s blanket ban, many believe, sets a dangerous precedent—one that could inadvertently harm one of the most environmentally responsible sectors in the global supply chain.
With science, diplomacy, and livelihoods hanging in the balance, the next 30 days may determine whether Karnataka’s areca leaf industry survives the storm — or becomes its latest casualty.
