Areca leaf plate industry hit as global conflict disrupts exports

The ongoing tensions between Israel and Iran have begun to cast a shadow far beyond the global oil and stock markets, severely impacting small and medium-scale export industries in India. One such sector facing an unexpected crisis is the areca leaf plate manufacturing industry in Karnataka, particularly in Shivamogga district.

Entrepreneurs who started small manufacturing units by taking bank loans are now struggling to survive as export orders for areca leaf products have slowed drastically due to global uncertainty. Industry representatives warn that thousands of workers could lose their jobs if the situation continues.

Shivamogga, along with districts such as Tumakuru, Uttara Kannada, Dakshina Kannada, Davanagere and Chitradurga, has become a major hub for manufacturing eco-friendly plates and utensils made from dried areca leaves. These biodegradable products are widely exported to countries including the United Kingdom, Netherlands, Australia and Germany.

Industry sources say Shivamogga district alone exports areca leaf plates worth ₹40–50 crore every month. However, the current geopolitical tensions have slowed shipments, leaving large quantities of finished products piled up inside factories.

Manufacturers were already recovering from a previous setback when authorities in the United States reportedly imposed restrictions after detecting cancer-causing elements in certain consignments of areca leaf plates exported from India. Just as the industry was trying to regain stability, the ongoing conflict has created fresh uncertainty in international trade.

The industry produces a wide range of eco-friendly items such as plates, cups, bowls and spoons from naturally fallen areca leaves.