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Export of Pan (Betel) Leaves from India. [Part 1 of 2]

YAGAY andSUN
Exporting betel leaves from India under HSN 1404 90 40: key compliance steps, certifications and incentives The text explains the regulatory and compliance framework governing export of betel leaves from India. Betel leaves fall under HSN 1404 90 40 and require exporter registration with APEDA, farm and pack-house registration under HortiNet, soil and water testing, adherence to GAP and GHP, and use of approved pack-houses. Shipments must carry a Unique Identification Code, standard export documents, and a Phytosanitary Certificate, with SHEFEXIL issuing health certificates for certain destinations. Government schemes such as RoDTEP, Duty Drawback, and ECGC support competitiveness and risk mitigation. Key challenges include stringent sanitary and phytosanitary standards, high logistics and compliance costs, and evolving import regulations. (AI Summary)

1. Introduction

Pan leaves, commonly known as betel leaves, are obtained from the vine Piper betle. For centuries, they have held an important place in Indian tradition, Ayurveda, and social customs. Owing to their aromatic quality and widespread culinary and medicinal applications, betel leaves form a niche but high-value segment in India’s horticultural exports. Although the product is delicate and perishable, export demand remains steady, especially among South Asian communities living abroad. With advancements in post-harvest handling, certification mechanisms, and increasing recognition of GI-tagged varieties, India continues to be an important supplier of quality betel leaves to global markets.

2. Major Producing States

Betel leaf cultivation is widespread across the country, but certain regions have earned a reputation for their superior quality leaves. Key producing states include:

  • West Bengal – one of the largest producers with extensive pan-growing belts.
  • Assam and Bihar – known for traditional cultivation and popular varieties.
  • Odisha and Andhra Pradesh – major contributors with established growing clusters.
  • Uttar Pradesh – famous for traditional Banarasi paan.
  • Tamil Nadu – home to unique GI-tagged varieties.
  • Karnataka, Maharashtra, Gujarat, Rajasthan, Madhya Pradesh – contribute region-specific variants with strong domestic and export relevance.

3. Popular Varieties

India is home to numerous distinctive pan varieties, each valued for its unique aroma, size, tenderness, and chewing quality. The widely recognized ones include:

  • Banaras Pan – prized for its fragrance and heritage value.
  • Mahoba Desawari Pan – large-leaf variety known for superior texture.
  • Magahi Pan – a celebrated Bihar variety with small, glossy leaves.
  • Sholavandan Vetrilai (Tamil Nadu) – known for its characteristic taste and traditional use.

These varieties differ in shape, leaf thickness, flavor profile, and shelf-life, influencing both domestic demand and export suitability.

4. Climate and Soil Requirements

Betel leaves thrive in warm, humid, tropical climates. Key growing conditions include:

  • High humidity and ample rainfall to maintain the plant’s moisture requirements.
  • Partial shade, as the vine prefers diffused sunlight for optimum leaf development.
  • Well-drained, fertile soils, rich in organic matter; loamy, clayey, and sandy-loam soils are all suitable with proper management.
  • Protection from hot, dry winds, which can easily damage tender leaves.
  • Regular irrigation, since moisture fluctuations affect leaf quality and market grade.

Planting seasons vary by region, but cultivation generally follows traditional knowledge tailored to each state’s climatic pattern.

5. HSN Code

Betel leaves are classified under the Harmonized System of Nomenclature (HSN):

HSN Code: 1404 90 40 (Under Chapter 14 – Vegetable products not elsewhere specified.)

6. Major Export Destinations

India exports betel leaves to a wide range of markets. Key destinations include:

  • UAE
  • Vietnam
  • Bhutan
  • Nepal
  • Malaysia

Additionally, markets such as the United Kingdom, Germany, Saudi Arabia, Oman, Qatar, Canada, and the United States also have consistent demand, primarily driven by expatriate communities.

7. Export Documentation and Compliance Requirements

Exporting fresh betel leaves involves strict hygiene, traceability, and quality assurance procedures due to the perishable nature of the product.

Key documentation and compliance steps include:

  • Registration with APEDA, including farm and pack-house registration under the HortiNet system.
  • Soil and water testing through accredited laboratories to ensure the absence of harmful contaminants, particularly microbial pathogens.
  • Good Agricultural Practices (GAP) and Good Hygiene Practices (GHP) at farms and pack-houses.
  • Use of approved pack-houses for cleaning, sorting, grading, and packing.
  • Unique Identification Code (UIC) labelling on export cartons for traceability.
  • Phytosanitary Certificate from the plant quarantine authority for the importing country’s regulatory requirements.
  • Standard export documents such as invoice, packing list, airway bill, and certificate of origin.

These procedures are essential to avoid rejections, especially in markets with stringent sanitary standards.

8. Export Performance

India’s betel leaf exports typically represent a small but consistent component of the country’s horticultural trade. Export volumes in recent years have ranged in the low thousands of metric tonnes annually. The value of exports, though moderate, has been rising progressively due to higher quality standards, improved packaging, and increasing acceptance of GI-tagged varieties.

While some markets enforce strict microbial safety standards, Indian exporters are gradually adopting better compliance systems. Export earnings have shown healthy growth in markets such as the Middle East and Southeast Asia.

9. Export Promotion Schemes

To support exporters, several government schemes and financial instruments are available:

a) RODTEP (Remission of Duties and Taxes on Exported Products)

This scheme refunds embedded taxes and duties that are not otherwise reimbursed, helping exporters remain competitive.

b) Duty Drawback Scheme

Allows refund of customs duties paid on imported inputs used in the production or packaging of export goods.

c) ECGC (Export Credit Guarantee Corporation)

Provides insurance cover against commercial and political risks, safeguarding exporters from payment defaults and enabling banks to extend credit on easier terms.

10. Export Promotion Council

Betel leaves fall under the purview of:

  • APEDA (Agricultural and Processed Food Products Export Development Authority) – responsible for farm registration, quality control procedures, export guidelines, and traceability systems.
  • SHEFEXIL (Shellac & Forest Products Export Promotion Council) – responsible for issuing health certificates to certain markets such as the European Union.

Both organizations support exporters through guidelines, capacity-building programs, market development initiatives, and trade facilitation.

11. Challenges in Betel Leaf Export

Exporting betel leaves involves several operational and regulatory challenges:

  1. Highly Perishable Nature – Leaves lose freshness rapidly; maintaining quality during transit is difficult.
  2. Microbial Contamination Risks – Even minor lapses in hygiene can lead to rejections in strict markets.
  3. High Logistic Costs – Air freight is typically used to maintain freshness, raising export costs.
  4. Compliance Burden – Soil and water testing, pack-house approvals, and documentation increase pre-export expenses.
  5. Competition from Neighboring Countries – Producers in some countries may offer lower-cost alternatives.
  6. GST Burden on Air Freight – Higher freight taxation can reduce price competitiveness.
  7. Variable Market Regulations – Importing countries frequently update sanitary and phytosanitary norms, requiring exporters to stay updated.

12. Government Initiatives

To strengthen pan leaf exports, the government has introduced multiple measures:

  • Refinement of export procedures through APEDA to ensure hygienic handling and traceability.
  • Mandatory registration of farms and pack-houses to standardize quality.
  • Promotion of GI-tagged varieties, which enhances brand value and international recognition.
  • Support to small farmers through training programs on good agricultural and hygiene practices.
  • Streamlining of export certification, including the involvement of SHEFEXIL for health certificates to specific markets.
  • Encouragement of cold-chain infrastructure to minimize spoilage and extend shelf life.

These interventions aim to enhance export competitiveness and reduce the risk of shipment rejections.

13. Conclusion

Betel leaves hold a distinctive position in India’s export basket due to their cultural significance, premium quality, and growing global demand. With systematic efforts in hygiene management, traceability, and post-harvest handling, India has strengthened its reputation as a reliable supplier of fresh betel leaves. Although exporters face challenges such as perishability, high logistics costs, and stringent quality regulations, the available government support schemes, certification mechanisms, and improved GI branding provide strong opportunities for growth.

Sustained investment in farmer training, scientific cultivation, better logistics, and international promotion can significantly enhance India’s share in the global betel leaf market in the coming years.

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