The Hindu : Business : Coir industry seeks sector-specific sop

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Thursday, Nov 22, 2007
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Coir industry seeks sector-specific sop

Staff Reporter

Board seeks Kamal Nath’s intervention

Coir industry in a crisis-like situation: chairman
Industry is highly export-centric

KOCHI: The Indian coir and coir products exports industry has sustained a loss of Rs.56.62 crore between April and October this year due to appreciation of the rupee against the U.S. dollar.

The loss has resulted from the lower unit value realisation for coir products for the period under review this year compared to the same period in 2006, said the Coir Board in a letter to Union Minister for Commerce and Industry Kamal Nath. The board sought sector-specific sop for the industry.

The net unit value loss was pegged at Rs.5,352.69 by the board when compared to the unit value of Rs.37,649.57 last year as against the unit value realisation this year of Rs.32,296.88.

The letter said that there was considerable loss of employment generation due to the appreciation of the rupee and the subsequent losses.

Between April and October this year, the exports were valued at Rs.340.59 crore (US $87 million). During the same period last year, coir exports were estimated at Rs.331.15 crore (US $77 million). The board felt that without an appreciating rupee, earnings would have been higher at Rs.397.21 crore.

Board chairman A.C. Jose said in his letter that the coir industry was in a crisis-like situation. Coir exporters met their orders despite the adverse conditions. If the rupee appreciation continued, coir exporters feared that they might be forced to shut down business, said the letter.

The chairman drew the attention of the Union Minister to sectors such as plantation, marine products, garments and fruits and vegetables which sought aid in the wake of declining exports. The sectors had less “import intensity and greater labour propensity.”

Mr. Jose said the coir industry with its rural base and with women dominating the highly labour-intensive industry had been left out of the considerations. The industry was also highly export centric, he said. The coir industry, with its low unit value realisation, was also vulnerable and was a “greatly an unfunded sector,” said Mr. Jose in his letter. He also thanked the Ministry for the schemes that had been sanctioned for the coir industry.

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