Online edition of India's National Newspaper
Wednesday, Dec 21, 2005
Online edition of India's National Newspaper Wednesday, Dec 21, 2005 |
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Staff Reporter
KOCHI: Coir Board has appealed to small coir manufacturers to drop their plan for a strike as it would, at this juncture, affect exports and exact a heavy price from the sector in long-term consequences. The small manufacturers are demanding, among other things, that exporters source their supplies directly from them. Under the present set up, depots collect coir products from small manufacturers and exporters source their supplies from these depots. Small manufacturers, the backbone of the nearly Rs. 500-crore coir export industry, have complained that their products do not get the right price under the depot system. A press release from the Coir Board Chairman, A. C. Jose, said here that steps would be taken by the Board to implement the decisions of the Coir Relations Committee at which the exporters had agreed to end the depot system. The small manufacturers are scheduled to meet in Alappuzha on December 22 to decide on a date on which they would go on an indefinite strike.
Concern over port tariff
Coir Board has made a representation before the Tariff Authority for Major Ports (TAMP) that the recent hike in terminal handling charges at Rajiv Gandhi Container Terminal by India Gateway Terminals Limited (IGTL) would adversely affect coir exports. Mr. Jose, in his letter to TAMP, appealed either for freezing the hike in charges or exempting coir from its purview. He pointed out that the cost of handling a 20-feet container had gone up from Rs.2,735 to Rs.4,354 (59 per cent) and that of a 40-feet container from Rs.3,865 to Rs.6,287 (63 per cent). "The steep increase" had created a lot of concern among small-scale coir exporters "since the export realisation in coir sector per container is much less when compared to other commodities," said Mr. Jose. According to him, the implications of the new rates may not be significant for commodities like spices and seafood because these items have higher FOB value per container. "The bulky nature of the coir products with less unit value and high incidence of freight are making the coir products uncompetitive in the price conscious markets," he added as he pointed out that more than half-a-million people in rural areas, especially along the Kerala coast, worked in the coir industry to earn a living.
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