The Hindu : Middlemen still rule the roost in coir sector

Online edition of India's National Newspaper
Sunday, Feb 01, 2004

Kerala

Kerala

Middlemen still rule the roost in coir sector

By A. Harikumar

ALAPPUZHA, JAN. 31. It may be because of the lack of commitment of a section of trade union leaders, but the depot owners in the coir sector, who act as middlemen between exporters and small-scale manufacturers, seem to have the last laugh in their fight with trade unions which wanted to put and end to their activities.

Despite an agreement between the representatives of exporters, small-scale manufacturers and workers in December last to end the `exploitation' by depot owners, they still call the shots.

The depot owners still take orders from exporters at low rates, pass over it to small-scale manufactures, collect products from small-scale manufactures and sell it to the exporters.

They function through self-help groups that include small-scale manufacturers who work under them as members, pointed out sources in the coir sector. When the agreement was signed to end depot system and form self-help groups (SHGs) of workers and small-scale manufactures, depot agents, who used to have 20 to 50 small-scale manufacturers supplying finished products, mobilised them and formed SHGs.

The nominees of the depot owners are usually elected president and secretary of the SHGs.

The depot owners also invested the capital in the society in the name of members.

It is alleged out that the whole affair was known to the top leadership of the trade unions, but they could do little as many of the depot owners were middle-level leaders of the trade unions.

The AITUC leaders alleged that many of the SHGs in the coir sector formed in the Mararikkulam constituency were formed with the help of middlemen.

The AITUC leaders also observed that large-scale purchase of coconut fibre by some of the big SHGs had resulted in increase in the price of coconut fibre in the Pollachi market in Tamil Nadu, which supplies fibre to Kerala.

Sources in the coir industry said that while the depot system had been almost stopped in Mannancherry and Aryad panchayats in the district, it prevails in all other areas of Ambalappuzha and Cherthala taluks where more than two lakh persons work in coir sector.

Meanwhile, it is pointed out that the present controversy over the credibility of SHGs had a political perspective also.

While the CPI(M) with its grass root level presence in Ambalappuzha and Cherthala taluks gained upper-hand in a majority of the SHGs, the other parties failed to get it.

It was because of this that the trade unions of other parties, including the CPI, the Congress and the BJP, had united to fight the CITU, noted some of the small-scale manufacturers.

Printer friendly page
Send this article to Friends by E-Mail

Kerala