Value Chain Analysis of Eco-Friendly and Bio-Degradable Arecanut Leaf Sheath Plate and Bowls Business in Karnataka

In Karnataka’s arecanut-growing regions, small and medium-scale enterprises have started manufacturing arecanut leaf plates and bowls, leveraging the plentiful availability of areca leaf sheaths and growing awareness of eco-friendly products. This research, conducted in 2023 in Davanagere district, Karnataka, India, involved data collection from 10 areca leaf plate and bowl producers, 30 arecanut farmers, 30 wholesalers, and 30 retailers. The study revealed that farmers received net returns of 11,400 per acre from areca leaf sheaths, valued at 1.90 per sheath. The manufacturing of areca leaf plates and bowls generated an employment potential of 1,825 man-days annually. Larger arecanut leaf plates had higher marketing margins and costs, which led to higher retail prices, while smaller sizes incurred lower marketing expenses and margins, making them more affordable for consumers. The producer’s share was highest for the 10-inch plate at 73.68%, followed by the 12-inch plate at 72.73%, with both the 8-inch plate and 5.5-inch bowl each at 66.67%. Price spreads were greater for the 12-inch and 10-inch plates (1.50 and 1.25, respectively) compared to the 8-inch plate (1.00) and the 5.5-inch bowl (0.75). Marketing efficiency was highest for the 10-inch plates at 2.80, followed by the 12-inch plates at 2.67, while the 8-inch plate and 5.5-inch bowl each had an efficiency of 2.00. Entrepreneurs in the arecanut leaf plate and bowl sector faced several challenges, including power outages during the day, shortages of leaf sheaths, low-quality supplies, and restricted access to export markets.