Arecanut Leaf Plate Manufacturing Cluster Development Project

This project, one of our most significant success stories, began with our recognition of the substantial potential of arecanut to generate economic opportunity and positive social and environmental impact in Northeast India. In 2004, we undertook a comprehensive study in Barpeta district in Assam to assess the feasibility of arecanut leaf plate manufacturing enterprises. This research revealed the potential for a ₹100 crore industry within the rural Northeast, a vision we were committed to realizing. This initiative transformed into Dhriiti’s flagship Arecanut Leaf Plate Manufacturing Cluster Development Project, a successful ten-year project where Dhriiti developed a complete operational model and ultimately transitioned management to a local producers’ institution.

The project aimed to spark a rural enterprise revolution by empowering local communities to utilize their existing resources. Although arecanut plantations were abundant, primarily for fruit production, the potential of the fallen leaves as a valuable resource was largely untapped. Dhriiti’s approach focuses on integrating local resources (both material and human), and financial capital to establish viable local enterprises. This involves identifying opportunities specific to each location and building an entire value chain, not just a single business. This value chain, in the case of this project, encompassed the entire process, from existing arecanut fruit businesses, to the collection of fallen leaf sheaths, to the manufacturing of plates, bowls, and spoons. 

Beyond the financial benefit to the communities, the project also offered a significant environmental benefit by providing a biodegradable alternative to plastic and Styrofoam disposable tableware, a major contributor to pollution. 

To ensure product quality and market viability, we conducted extensive research and development, including testing the leaves for microwave compatibility, personal use, and suitability for export. Having established the quality of the product, the focus shifted to developing a sustainable social enterprise model that would benefit the local economy.

PHASE I:

In Phase I, with funding from USAID and Friends of Women’s World Banking, India, our primary goal was to refine our machinery through focused research and development. We traveled to Howrah, where our team collaborated with local machine fabricators. In just one month, they developed a unique gas-powered machine, a significant innovation and a testament to the ingenuity found across our country.

Following the machine’s development, we shifted our focus to community engagement through awareness campaigns and mobilization efforts. These campaigns aimed to educate communities about the previously unrecognized economic potential of arecanut leaves. During this phase, we established approximately 20-25 production units. While some were successful and others faced challenges, the overall outcome was the refinement of the core machine design and the initiation of initial production. Crucially, we gained valuable insights into the requirements for running such an enterprise, confirming its viability.

PHASE II:

Phase II, funded by the Dorabji Tata Trust, NABARD and NEDfi, spanned four years and focused on scaling the project and establishing its viability through broader entrepreneurial involvement. Our investment centered on understanding the operational dynamics of individual production units. We provided machines to producers and developed the necessary logistical framework. This included establishing raw material banks for storage, protecting the leaves from fungal growth during the rainy season, and implementing quality control measures. We also continued to refine the machinery, collaborating with our fabricators in Howrah to create improved designs.

One key challenge was leaf collection during the monsoon. To address this, we worked with our Howrah fabricators to develop a specialized dryer, powered by burning waste products, that dried the leaves without exposing them to hot air or smoke. This phase involved significant research and development.

A major milestone in this journey was the Chief Minister’s recognition of the potential of these enterprises, leading to the industry’s inclusion in the government’s enterprise development program. This opened access to financing from mainstream commercial banks, which had previously been unavailable due to the project’s non-governmental status. This policy-level recognition triggered significant scaling and widespread adoption of the machines.

In addition, this phase included the establishment of Tamul Plates as a separate, independent marketing company. The focus of Tamul Plates was on the production and marketing of plates on a commercial scale.

To develop women-led enterprises, we determined that Phase III would need to prioritize strategies for women’s ownership and management of these enterprises.