The Hindu : Business : Efforts on to boost coir industry

Online edition of India's National Newspaper
Wednesday, Sep 06, 2006

Business

Business

Efforts on to boost coir industry

Staff Reporter

Export and employment generation programmes have been chalked out

KOCHI: Among the major targets for the third millennium coir industry are Rs.1,500-crore worth of export by 2012 and employment to about one million people, mostly rural women, which will go a long way in alleviating poverty in Kerala's traditional coir producing areas.

Bringing about major changes in obsolete technology and strengthening the industry's marketing arm to penetrate new markets are some of the other major goals for the coir industry in the immediate future.

The industry will get Rs.100 crore in interest subsidy for technology upgradation over the 11th Five Year Plan. Creation of 10 export clusters each, with an outlay of Rs.2 crore, and a special market development fund of Rs.200 crore during the 11th Plan are being planned.

Programmes for creation of a generic common brand for coir and coir products from India, positioning of coir products as home décor products in the U.S. and European Union markets, more research and development activities and new product blends are on the anvil for the coir industry.

These programmes take into consideration the current state of the industry dogged by poor technology, low rate of upgradation, lack of competitiveness and failure to penetrate new markets.

Coir Board and the Export-Import Bank of India recently entered into an agreement for market surveys, utilisation of Exim Bank's foreign offices for showcasing coir products from the country, identification of potential buyers, setting up a land duty-paid warehouse in Europe to cater to the needs of larger departmental stores, mass merchants, shopping chains and home improvement centres.

According to the statistics released by the Director General of Commercial Intelligence and Statistics, Kolkatta, coir exports touched a record high of Rs.594.41 crore ($134.26 million) during the last financial year.

This was a an increase of 27.19 per cent in dollar terms (all India aggregate is 22.97 per cent) and 25.33 per cent in rupee terms (all India aggregate is 21.17 per cent.)

The industry also broke a record by surpassing the target fixed by the Union Ministry of Commerce for 2005-06. The Ministry has fixed a target of Rs.725 crore for 2006-07.

Coir is presently exported to 92 countries even though the major chunk of it (40 per cent) finds its way to the U.S and 39 per cent to the European Union countries while 21 per cent is exported to other countries.

The Coir Board will organise an international meet here between November 27 and December 1 involving 200 stakeholders from 85 Commonwealth centres for a follow-up action on building and developing institutional capacity on competitive policies and strategies for Commonwealth developing States.

This will be the first time that a Commonwealth delegation is meeting in Kochi.

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