Coir sector finds the going tough

Many small units shut shop as export orders and general demand dry up

Muhamma, located on the western bank of Vembanad Lake, is dotted with coir units. It is home to a number of coir cooperative societies and individual units engaged in coir yarn spinning, production of mats, and coir geotextiles. But several small-scale units now lie dormant.

Vijayan, 67, has seen many ups and downs in the industry. After working in a coir factory for several years, he started his own fibre and creel mat production unit 18 years ago. His unit made a profit until three months ago. Now, cobwebs cover the unit and six traditional looms have gone to seed. “I closed down the unit after failing to get any orders in recent months,” says Mr. Vijayan, pointing to a stack of unsold mats.

Between 2016-17 and 2021-22, the government has allotted more than ₹1,400 crore for the coir sector through budgetary allocations and funds sanctioned through agencies. Despite the previous and present Left Democratic Front governments pumping in money, enhancing the pace of mechanisation and launching many ambitious projects, the sector that employs around two lakh people in the State continues to remain crisis-ridden and on the brink.

The small-scale cooperative societies and production units in Ambalappuzha and Cherthala taluks are demanding fresh orders for traditional mats and mattings. They allege that the exporters are not notifying orders for traditional coir products with Kerala State Coir Corporation Ltd., the agency for implementation of the Purchase Price Stabilisation Scheme.

Confirming the dire situation, a top official of the Coir Corporation told The Hindu that coir products worth ₹40 crore have piled up at godowns with no takers. “The Coir Corporation gives orders to societies based on demands from exporters. After COVID-19, there is a lack of demand for some products such as fibre mats,” the official says.

Around 65 societies, encompassing 8,000-odd small-scale coir units, are producing coir doormats and mattings on handlooms in the outskirts of Alappuzha and Cherthala towns.

According to industry experts, till recently the exporters were procuring the products from societies of their choice and recording it as supplies procured through the Coir Corporation in order to receive export incentives from the government. “Due to this practice, many small-scale societies were deprived of their share of orders. The societies objected and the Coir Corporation streamlined the distribution of orders for export based on the production capacity of the societies for the particular product. This has irked the exporters and they are slow pedalling on placing orders with the Coir Corporation,” says M. Kumaraswamy Pillai, Director (Marketing) (retired), Coir Board.