Alappuzha: About 28 coir co-operative societies which manufacture coir mats and mattings directly employing over 5,000 are running on loss and facing closure due to "improper" policy implementation and negligence from the authorities concerned.

The so called "golden fire" export accounts for about Rs.400 crores annually and 90 per cent of it is from the State. Out of this 90 per cent, about 85 per cent is from Alappuzha district.

New Model Coir Mats and Mattings Co-operative Society Limited Secretary T.P. Maniyyappan said the situation was becoming worse day by day as the societies had to sell their products to private exporters at a lower price.

"We can't afford to sell the products at a lower price. We are committed to the welfare of our workers. Compared to exploitation of workers in private coir companies, we provide them prescribed wages, festival allowances, gratuity and other benefits. Right now, we don't have a market to sell our products and we are forced to sell out products to private companies at a very low price. We solely depend on the ten per cent of Market Development Assessment (MDA) fund given by the State Government to run the society."

Lack of exports

"We produce about 50 tonnes of mats and mattings per month, but we could not find buyers from outside," he added.

Association of Coir Mats and Mattings Co-operative Societies president and member, State Advisory Board, coir procurement and welfare implementation, P.V. Sathyanesan said the LDF Government would formulate certain policies to safeguard the interest of the societies.

He said on one side when the private coir companies were making huge profit from exports, the societies which provided complete welfare to its workers were reeling from lack of funds. "Lack of commitment from certain officers concerned in Coirfed and Coir Corporation to find market for coir products adds more distress to the smooth functioning of the societies," he added. "It is up to the Centre to come out with policies to save the coir societies. The Centre has to fix Minimum Export Price (MEP) and Minimum Purchase Price (MPP) for coir products to avoid the disparity in prices and unhealthy competition between private players and societies."

"The societies cannot afford to sell their products at a lower price in export market because they have to provide correct wages, ESI, bonus, festival allowance to the employees. But in private companies the workers will not get all these benefits, so the management can afford to sell their products at a very less price to buyers abroad," he added. — UNI

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