From tree to table

More and more, environmentally conscious consumers are opting to buy areca leaf plates. Among alternatives to plastic, the demand for areca plates has increased both in domestic and international markets.

“Due to soaring demand, the price of an areca plate (12 inch) in the domestic market has increased from over Rs 3 to over Rs 6,” says Sachin Jarigethadi of Shree Areca Leaf Plates (SALP) in Kokkada in Belthangady taluk. Eighteen years ago, the price of the raw material, the areca leaf sheath, was 20 paisa. Today, industries manufacturing areca plates must pay between Rs 2 to Rs 3.20 per areca palm leaf, said Athishay Jain, co-founder of Agrileaf Exports Private Limited in Nidle near Dharmasthala.

Sachin’s company registered a total turnover of Rs 1.5 crore, including Rs 50 lakh worth of sales in the domestic market in the previous fiscal. He says that the sales of areca plates have now grown higher than pre-Covid levels. During the pandemic, demand for areca plates had collapsed completely. But post-Covid, as consumers became conscious about their health and the environment, there was a sudden demand for areca plates in the domestic market, he adds.

Exports hold promise

The areca export sector also holds great potential for growth. “Exports have remained steady due to strict quality controls,” Sachin says. Areca leaf products are exported to the US, UK, Netherlands, Germany and Sweden, according to data compiled by the Director General of Commercial Intelligence and Statistics (DGCIS).

Karnataka contributes close to one-third of the nation’s areca leaf product exports, according to data compiled by the Bengaluru-based Visvesvaraya Trade Promotion Centre (VTPC). Dakshina Kannada district mainly exports areca leaf plates. The district exported 572 metric tonnes of areca plates and other areca products worth $17,16,000 from New Mangalore Port in 2021-22.

In 2022, over 835 tonnes of areca leaf plates (worth $25,05,000) were exported from the port, registering a growth of 46% from the previous year. US-based exporter Michael Dwork says there is a huge demand for biodegradable plates and estimates that areca plates constitute a $15 to $20 million industry in the US. The highest-selling Chinese sugarcane plates make up a $1 billion industry.

“Areca plates were pricier than sugarcane plates before Covid. But a 25% duty, supply chain issues in China and other factors increased the cost of sugarcane plates to $.18. Many consumers were willing to pay a little extra for an upgrade and buy areca plates as it gave an experience similar to eating from a ceramic plate,” says Michael, who is also CEO of VerTerra, which has been importing biodegradable dinnerware from India for the past 18 years.

However, a dip can be expected in exports from India, says Michael. “Due to improvements in the supply chain, Chinese plates are becoming inexpensive and the rupee is likely to get stronger,” he explains. 

Areca plates being sorted and packed by employees at the Agrileaf Exports facility in Nidle near Dharmasthala.

Sachin also predicts a decline in sales in the domestic market: “As the domestic market is price-conscious, consumers would shift from areca plates to steel plates.” 

But bigger exporters are upbeat. “Agrileaf has set a goal of manufacturing one billion areca leaf plates in the next three to five years,” says Athishay.

Women manu

areca plates