Agrileaf Exports Private Limited in Nidle, Dakshina Kannada, has developed a functional AI-based arecanut grading and sorting machine, said founder and CEO Avinash Rao. The new technology can sort arecanut into four grades: chali, ulli, fator, and karigot. "The AI based technology developed is 80% accurate in detecting and sorting out the grades of arecanut," Rao told The Hindu. The product needs another six months of development before it can be widely used. Co-founder and COO Athishay Jain led the initiative to build this computer-driven grading system. The company, which already uses AI algorithms for sorting its arecanut leaf-based biodegradable dinnerware, created this new machine as a goodwill project. Rao added that cooperative bodies handling arecanut must partner to make this machine available to farmers. "The company will transfer the technology as per procedures," he said. Agrileaf will not produce the machines commercially as it is not their core business. On January 5, 2026, a delegation from major arecanut cooperatives visited Agrileaf to see the machine in action. The group included leaders from CAMPCO, TSS Sirsi, TUMCOS, MAMCOS, All India Arecanut Growers’ Association, and former Home Minister Araga Jnanendra. Rao said, "The appreciation from stalwarts of the areca sector for our AI technology and other innovations has given us even greater motivation to move forward."