CHAPTER - I1

COIR INDUSTRY IN INDIA

This chapter deals with the background material for the proper understanding of

the subsequent discussions. It briefly reviews the history of the coir industry in India

covering the developments that took place in the industry chronologically. It traces the

problems cropped up in the Indian coir industry from time to time and how they were

tackled. The geneses of the Coir Board in 1954, shortage of husk in 1974, the arguments

for and against modemisation of the industry in 1980s and the dwindling export market to

an all time low level in 1987-88 are all dealt in this chapter. It further examines the

recommendations for modernisation by various study groups. It explains the

circumstances, which forced the launching of modemisation by the Government of Kerala

in 1990-91 and the subsequent Integrated Coir Development Programme launched in

1993. It also explains the reasons for the concentration of this industry in Kerala.

The survey of the history of coir industry in the world shows that the origin of

modem coir industry was in England. Nearly 160 years before, three partners of a London

carpet firm registered their patents for the manufacture of coir fibre in various fabrics

suitable for floor covering. "Coconut is a tropical palm and thrives best in coastal areas.

India, Philippines, Ceylon, Dutch East Indies and Malasiya are the most important

coconut growing countries of the world. Coir is also found on a smaller scale in the Cape

Varda Islands, Guam and numerous small islands in tile Pacific, French Guinea, Leador,

Veninzula, Peracuna, Colarnbia, Brazil, Belgian Congo, Italian Somaliland and Eritrea." ' India ranked first among the coconut producing countries in the world. It produced 13,231

million nuts in 1994-95 as against 53,894 million nuts produced in the world. This is

about 24.55 per cent of world production. Indonesia stands second in the world

production.

The history of modern coir industry in India dates back to 1859, with the starting

of the first coir weaving factory in Alleppey Kerala State by Mr. James Daragh, an

enterprising American of Irish origin. Coir industry is an important foreign exchange

earner for the country. The industry engages over five lakhs workers, 5,000 manufacturers

and 140 exporters.

Coir industry in India has a very long and glorious past. It continues to play a

prominent role in the national economy of India. "Return to nature" concept has now

brought intensive affinity for coir and coir products all over the world. "Some people say

that the coconut palm came from Ceylon. Other say that the coconuts drifted in the sea

from Polenisia and found new homes in many parts of the world. According to early

Greek chronicles it was Megasthenes, ambassador of Seluces Nicater, who told the lndian

king Chandra Gupta about the coconut palms he found in Ceylon in 300 BC" Arab

writers of 1 lth century AD had mentioned that coir was used as cables for Ships. During

' lndian Coconut Journal, Indian Cenml Coconut Cornmince, 1948, p.23. ' History and Home of Coconut, Coconut Bulletin published by the Indian Bconut Committee. Septemkr, 1954, p.202)

the 13th century, the great traveller Marco Polo mentioned in his travel accounts that Coir

was an item of trade with India even in the days of ancient Greece, Rome and ~ r a b i a ?

A major portion of this wonderful gift of nature in India comes from Kerala, the

land of limped lagoons and swaying coconut trees, other wise called "God's own

country". The name "KERALA" is derived from the Sanskrit word, "KERAL" meaning

coconut. Kerala has for centuries been the natural home for Coir. The fact that the word

'Coir' is derived from the Malayalam word 'Kayar' meaning 'cord,' shows that this

material first became known as a product of the Kerala coast.

Governmental interventions during 1939 to 1950

The problems faced by the industry in the past and the way in which the

situations were tackled by the Government from time to time can be seen from the

following reports. The Trade Dispute that upset the mats and matting sectors of the

industry in 1939 was settled on the lines of the recommendations of the Report of Board

of Conciliation of Trade Disputes in the Mats and Matting Industry headed by George K . The Report of panel on Coir Rope, Cordage and other Fibre Industries by the study panel

headed by Shri Kamnakaran K., in 1946 and submitted to the Government of Kerala

provides an understanding on the historical background of the problems in the industry.

The Annual statistical publications brought out by the Central Bureau of Statistics, (CBS)

in 1950 give data on the production of floor covering and coir processing industries from

1934 to 1950

Ibid. p. 203

Problem8 in the Coir Mats and Matting Sectors in 1955

The study conducted by Shri. Menon S.R.K., on Coconut Industry (Coconut

Industry, Coir Board, 1954) helps to understand the problems and prospects of coconut

production and distribution in lndia which in-turn decided the supply of raw material of

the industry at that time. A similar study on the problems and prospects of the Coir Mats

and Matting sectors of the coir industry in Kerala was conducted in 1955 by Dr.

Prameswaran Pillai G. He gave certain suggestions, which the Government of Kerala

implemented in 1955 to settle the problems faced by the mat and matting sectors at that

time.

Geneses of tbe Coir Board in 1954

Geneses of the Coir Board in India was the need of the time in the early fifties for

the resurrection and growth of the Indian Cior industry. The fortunes in the industry at

that time largely depended on the export market. During the years 1950 to 1953 the

industry was hit by a serious depression. The production had dropped, prices slumped and

unemployment mounted causing great hardships to the large population in the coastal

districts of Kerala, which solely depended on coir industry for their livelihood. To assess

the gravity of the problem the Govemment of India conducted a study. It realised that it

would be disastrous to leave the industry to the vagaries of frequent fluctuations of the

export market. To tackle this problem and for the development of Coir Industry, the

Government of India passed the Coir Industry Act of 1953. Under this Act the Coir Board

was set up in July 1954. The Coir Board has thus become the official Organisation to look

after the progress of Indian Coir Industry by assisting producers at home and consumers'

abroad.

Functioning of the Coir Board

The Coir Board plays a vital role in the promotion and development of the

industry. It works for the promotion of exports of Coir Yarn and Coir products and

carries on propaganda for that purpose. The Board also exercises control by regulating

the production and distribution of Coir and Coir products through registration and

licensing. As an apex body, the board encourages scientific, technological and economic

research in addition to assisting in the maintenance of research Institutes. The board

collects and disseminates information to the public by publishing statistics. The board

also prescribes standards for coir fibre, coir yarn and other coir products. It takes efforts

to prevent unfair competition in order to ensure a healthy atmosphere in the industry. The

board also encourages in the establishment of modem factories besides promoting co-

operative organisation in coir industry. It aims to ensure a remunerative return to the

producers of coir and coir products. The board works as an advisory body to the

Governments and other agencies on all matters relating to the development of the coir

industry and the like.

Constitution of the Board

The Central Government is empowered to constitute the Coir Board. It consists of

a Chairman and 30 members representing the various interests such as; growers of

coconut and producers of husks and coir yam, persuns engaged in the production of

husks, coir and coir yam and in the manufacture of coir products, manufacturers of coir

products, dealers in coir, coir yam and coir products including both exporters and internal

traders, Parliament - two parliament members to be elected by the Lok Sabha and one to

be elected by Rajya Sabha, The respective Governments of the coconut growing states,

such other persons or class of persons who in the opinion of the Central Government

ought to be represented on the Board.

The Board is empowered to constitute different Committees, such as, Research &

Development Committee, Export Promotion Committee, Marketing & Publicity

Committee, Brown Fibre Development Committee and Hindustan Coir Advisory

Committee for the effective and efficient functioning.

Regulating and controlling the Industry

To attain the objective of regulating and controlling the industry for its

development, the manufacturing industries have to be registered under the Coir Board. A

major portion of the registered units is existing in Kerala. But on observing the units

registered during 1997-98 it is found that the rate of additions in the other three coconut

producing states is very high. This indicates that the industry has a fast growth in the

neighbouring states. It is also observed that the rate of growth of this industry in

Tamilnadu is the highest among the neighbouring states.

Intervention of the Coir Board to Solve Problems in 1955

In 1955, The Coir Board appointed many Ad-hoc Committees to solve the

problems faced by the industry at that time. All these Cumit tees presented their reports

to the Coir Board in 1955 based on which remedial measures were taken by the

Government of Kerala.

Assessment in 1960

Tne report of the Coir Board on Coir in India's Economy, 1957 shows the role of

coir industry in the Country's Economy at that time. It reveals that it had a vital role to

play in providing employment and earning foreign exchange. A subsequent report on the

production, distribution and employment in coir industry, conducted by the Economics

and Statistical Survey in 1960 provides data pertaining to that period. Similarly, the

Report on the Survey of Primary Coir Co-operatives in Kerala conducted by the Bureau of

Economic Studies Trivandmm in 1961 also provides a vivid picture regarding the

working and management of the Coir Co-operatives prevailed during that period.

Scheme for the Development ofthe Coir Industry in 1968

The Scheme for the Development of the Coir Industry in Kerala was drafted by

the G o v e m e n t of Kerala in 1968. It gave suggestions for the development of the

industry, taking stock of the situations prevalent then. However, the study did not point

out the danger of labour displacement while discussing the use of husk-beating machines,

rather it had only apprehensions about the poor quality of fibre extracted by the machines.

Problems in Marketing in the Year 1968.

Coir industry faced severe problems in marketing the products in the year 1968.

A study on the problems of marketing and foreign trade of the industry conducted by

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Prof. B a s h Unnithan examined each segment of the market mechanism, such as the

retailing and the whole selling systems. The study also examined the activities such as

buying, selling, transporting, storage, grading, financing, etc. The problems of internal

marketing and development of Co-operative marketing were also taken up for the study.

The export market of coir that prevailed at that time was briefly surveyed. The pattern of

financing of foreign trade was examined. The problem of export promotion was studied in

all its respects. The study throws light on the strong as well as weak points in the

structure of the coir industry in India and identifies some of the problems faced by the

industry at that time in the sphere of marketing and foreign trade.

He concluded that the future of the coir industry in India, hinges on the

constructive measures aimed at increasing productivity, improving quality, reducing cost

and above all to improving the marketing mechanism.

Exploring the Export Potentials la 1971

In 1971, The Indian Institute of Foreign Trade brought out the Survey Report on

India's Export Potential of Coir and Coir Products. Similarly Planning Commission of the

Government of lndia appointed the Task Force on Coir Industry. It conducted an

extensive study regarding the various issues relating to coir industry and submitted its

report in 1973. The report emphasised the need for modernisation of coir industry in lndia

for its existence in the world market.

Crisis in 1975

The study on 'the problems and prospects of the Coir Industry in Kerala'

conducted by Dr.M.V.Pylee in 1975 gives a clear picture of the problems faced by the

industry at that time.

The basic facts regarding the production of coconut, process of fibre extraction,

production of coir, internal consumption of coir, and the world trade in coir were

examined by him. He was of the opinion that for the survival of any industry there should

be a realistic plan for its long-term growth. He recommended a strategy for modemisation

of the industry for its survival in the long run.

Shortage of coir fibre was the basic cause of the crisis that developed in the Coir

Industry in India during 1974. The first signs of the crisis surfaced towards the end of

1973. Since then the crisis gradually gathered momentum and reached its peak towards

August-September of 1974. Shortage of fibre had adversely affected the output of the

spinning and manufacturing sectors located chiefly in Kerala. As a result there was

substantial decrease in the production of coir products. The reduced operation in the

spinning and manufacturing sectors on one hand left a large number of workers

unemployed especially in the spinning sector and on the other hand many exporters were

unable to execute not only export orden but were also finding it risky to accept foreign

orders. The net effect was felt in the export performance during 1974-75, which was

4975 tonnes less than the previous year.

Husk Control Orders of the Government in 1973 and '74

The imposition without effective implementation of too many controls all at the

same time was the basic cause of the event that led to the crisis situation of 1974

according to Dr.M.V.Pylee. From the third quarter of 1973 the Government of Kerala had

introduced a series of regulatory measures under the Defence of India Rules. The Central

Government had also come into the picture with the Husk Control Order. These

regulatory measures were intended to give a better deal to the workers. Among the

various Notifications and Orders, the ban on the use of husk-beating machine, and the

inability of the Government to implement the Husk Control Order had badly disrupted the

organisations for collecting, transporting, retting and extracting of coir fibre. The

production of coir fibre suffered unmistakably as a result. This had a cyclic effect on all

sectors of the coir industry and the sectors worst affected were Spinning and Exports.

Relaxing Government controls on husk removed its shortage in 1975

The acute fibre shortage of 1974 had practically disappeared by early January

1975. This was mainly because the Government of Kerala began to realise, although

belatedly, the complexity of the situation began to relax controls. The positive measures

of the Government with a view to restructuring the co-operatives and increasing the role

of the Kerala State Coir Corporation also had its impact on easing the situation which was

reflected in the exports in 1975.

Need for change in technology felt in 1975

India was lagging behind in the application of science and technology on the Coir

Industry, This was the main reason for declining trend in exports during that time. The

28

following developments took place in the other coir producing and consuming countries.

viz. The development of synthetic hard fibres, development of non synthetic substitutes,

development of sophisticated coir products and development of mass production

techniques of higher productivity.

Mechanise and modernise the Coir Industry in India in a phased manner appeared

Lo be the solution for the crisis in 1975.

Suggestion to implement mechanisation through co-operatives

Since the interest of the workers is a major consideration for introducing

mechanisation in the fibre-extracting sector, preference should be given to public sector

and workers co-operatives to install and operate the husk-beating machines. The working

of Co-operative Societies so far in the Coir Industry has not been encouraging to warrant

undue reliance being placed on them. If co-operative societies are to play an efficient role

in the process of modemisation, they need considerable strength both financial and

administrative. However, it is advisable to permit a certain number of private parties also

to operate these machines particularly in areas where public sector units and Co- operative

Societies are not in a position to operate.

The introduction of husk beating, under whatever controlled condition it might

be, would not in itself bring forth the desired objectives unless a steady and adequate flow

of raw materials to the machines are ensured at realistic prices simultaneously. It was

further observed that it may be ensured by effectively implementing the Husk Control

Order or by alternative methods such as the creation of a Central Organisation to handle

exclusively the buying and supplying of raw husks as well as arranging retting facilities.

29

A threat to the fibre supply to Kerala'a spinning sector.

The growing Coir Industry in the States of Tamil Nadu, Karnataka, Andhra

Pradesh as well as other coconut producing States in India offers great scope in those

states for introducing mechanised spinning of yam used for agricultural purposes in the

overseas. Such a move will also absorb the large stocks of coir fibre generated from the

increased number of husk-beating machines being installed in these States. In Kerala,

mechanisation of spinning was not a feasible proposition in the foreseeable future because

of its adverse impact on labour displacement. It was observed that in the long run,

however, it might become inevitable for Kerala also to adopt modem methods of

spinning. Hence to facilitate timely change, it was therefore desirable for Kerala also to

consider the prospect of setting up experimental spinning units in the Co-operative sector,

in areas which are conducive for this change.

Introduction of Sophisticated Coir Products necessitated modernisation

In the manufacturing sector there was an urgent need for India to modemise

production and manufacture of sophisticated coir products which have a market of about

20,000 to 22,000 tomes abroad. in 1975. At that time the entire quantity was produced in

Western Europe. Later on the European coir manufacturing Industry was facing a crisis

due to the high cost of labour and therefore they were eager to transfer technology,

machinery and equipments. They were also prepared to enter into market tie-up

agreements for guaranteed off take of the entire production of sophisticated coir products.

Taking advantage of the situations, if India progressivsly converted more and more yam

into mats and matting using modem technology, her products would have been cheaper

than the European wi r products. This would have enabled India to capture a sizeable part

of the world market fed by European products.

The export-oriented power-loom production with foreign collaboration as

proposed above is primarily designed to manufacture sophisticated coir products, which

cannot be produced on the handloom at competitive price. Hence, the handloom sector

will not be affected and there will be no problem of labour displacement; instead, these

ventures will actually provide additional employment not only in weaving but also in the

preparatory processing of yarn, dyeing, ancillary industry and for repair and maintenance.

Since the power-looms and handloom would co-exist supplementing each other in the

product mix, the opportunities for foreign collaboration was a favourable proposition to

India.

Need for Research and Development

Although the Coir Industry in India is over a hundred years old, very little

research only was done to apply modem science and technology for product improvement

or development. The strategy for research and development must combine product

improvement through, process improvement, cost reduction and new product

development, mbberised coir, manufacture of needled coir pads such as new forms of coir

matting etc.

'Suggestions for the stnrcturaI expansion of the Coir Board

The functions of the Coir Board as discussed in the earlier part of this chapter

b i d e and exhaustive, and they cover almost all aspects of the industry. Although the Coir

Board has been functioning for over two decades prior to 1975, the functions undertaken

by the Board in 1975 did not cover all the functions assigned to it under the Coir

Industries Act. At the same time the problems faced by the industry were becoming more

and more complex. Hence there was an urgent need for the structural expansion of the

Coir Board.

Advocates of modernisstion in 1970s.

Many studies on coir industry have argued for mechanisation, Important among

them were the "Survey of India's export potential of coir and coir based products

conducted by the Indian Institute of Foreign Trade in 1971", " Report of the task Force on

coir industry by the planning commission in 1973", "The report of the study group of

mechanisation of coir industry in Kerala, by the Kerala state planning board in 1973",

"Coir Promotion Survey on Transfer of Advanced Coir Processing Technology to

Developing Countries conducted by UNTP in 1975". "A study of the coir industry in

India" - problems and prospects conducted by M.V. Pylee in 1976. The study of structure

and Organisation of coir industry with particular reference to employment in Kerala

conducted by M.N.V. Nayar in 1977. All these findings and reports favoured

modernisation. However, rrade Unions continued to challenge any step towards

modernisation.

Critic8 of moderniaation

The high level Study Team headed by B. Sivararnan, which was appointed by

National Commission in 1978, was against mcchanisation. The study team favoured the

banning of any further mechanisation and argued for deregulating the husk market. But

this report was denounced both by industrial circles as well as by the state Government of

Kcrala. Ultimately the report was shelved

Debate on Mechanhation in 1980s

In the 1980's, debate on mechanisation of coir industries became stronger when

the husk prices have escalated and the overall demand for coir products declined. The

wages and the days of employment in the industry fell adversely affecting the standard of

living of the people. It was this crisis that has mainly strengthened the arguments for

reorganising the industry on a modem technical basis. Mechanisation was mainly

intended at reversing the decline in the export demand.

Supporters of mechanisation pointed out that the prospects of increasing exports

are further enhanced by the development in the European Coir Manufacturing Industry.

Due to radical changes in the carpet technology, prohibitive rate, cost, etc., the European

Coir Industry started declining rapidly. Therefore the European Industries were prepared

to transfer the technology on concessional and attractive terms. As a result India could

capture the traditional European Conventional market of nearly 30,000 tomes, which was

catered by the European power-loom industry.

Those who opposed modernisation argued that the offers of technology transfer

were motivated by self-interest of the declining European Industry rather than its

appropriateness to the conditions in Kerala Most of the European industries had no

opportunity cost than the scrap value of the machinery. It was argued that the handloom

industry in K e d a is equally capable of catering to the needs. The increase in the export of

handloom matting from the mid-seventies was held out as a proof of the market resilience

of handlooms.

Indian coir industry in mid seventies had to face a threat of competition from

other regions. The situation was that if India did not take the initiative in technology

collaboration with the West, it could lead to the development of mechanised coir

processing in other coconut producing countries. This would further lead to a decline in

India's share in the world market. India's share in the world market has come down from

50 percent in sixties to 25 percent in eighties. There was also a threat of shifting the

industry from Kerala to the adjoining coconut producing states such as Tamil Nadu,

Karnataka and Andhra Pradesh.

People who opposed modemisation argued that development of mechanised

production in other countries was illusory and not real. According to them, the efforts to

develop the white coir fibre industries in Sri Lanka and Indonesia from 1920's have not

been successful due to various ecological and economic reasons, They have developed

only the brown fibre industry, which does not require retting facilities.

Other complaint regarding decline in coir exports in Kerala was lack of

diversification of coir products and their poor quality. It was difficult to weave better

varieties of coir matting on handlooms. Therefore mechanisation was suggested to be the

only way to capture the potential market for sophisticated coir products in Europe.

To counter this argument people opposing modemisation argue that the

modernisation of a i r products, so as to suit market change does not necessitate the

mechanisation of weaving. They were of the opinion that quality could be improved by

improving the dyeing and finishing works rather than changing the technology in

weaving. They were of the view that a better marketing strategy, emphasising the natural

quality of coir and the handicraft techniques can capture the market. Similarly they

denied the view that mechanisation always improve the quality. The mechanical defibring

process in fact produces a lesser quality fibre, as it is likely to split or break the fibre.

The advocates of mechanisation pointed out the unhygienic working condition

under which manual defibring is done. They highlighted the difficulties of open-yard

wheel spinning and the strain of weaving on out antiquated handlooms. They were of the

opinion that fears of unemployment were highly exaggerated. They argued that the

expansion of production due to increased demand resulting from modemisation and the

new complimentary occupations that are expected to come up due to modernisation would

reabsorb the displaced workers.

The replies to these arguments centred on the displacement of labour. In their

opinion these displaced workers have no other alternative than starvation. According to

them a comprehensive mechanisation programme in defibring, spinning and weaving

sector would certainly displace more than half the labour force engaged in the industry.

Technological Backwardness in 1986

Kerala State's industrial backwardness was attributed to high wages and labour

militancy for a long time. It is true that when other things remain the same capital would

prefer docile and cheap labour. But a study on Kerala's industrial backwardness

conducted in 1986 has proved that it was the technologically backward structure of

Kerala's industries, that caused low labour productivity and minimum forward and

backward linkage rather than the high wages. It also showed that wages in the organised

industrial sector in Kerala were lower than in several other industrially developed Indian

states? Thus the technological backwardness retarded the industrial development in

Kerala and higher wages was not the real fetter, as it was believed. Hence further

development of the industry in the State crucially hinges on technological up-gradation.

Kerala has been characterised by low productivity and traditional technology.

Given the export orientation and petty production structure merchants who call for

mechanisation dominated the industry, This formed the background to the growth of

militant trade union in the industry. The workers opinion to machinery was based on the

threat it posed to their employment.

To protect employment the strategy was to remove the middleman and reorganise

the industry on a co-operative basis. This attempt has been undermined by the scarcity of

raw material, the ineffectiveness of intervention of raw material market as well as the

decline in the foreign demand. Consequently, the real wages and base of employment in

the industry have deteriorated. A re-examination of the issue of technological u p

gradation assumes special significance in such a context.

K.K.Subramanian and P,Mohanam Pillai, Kerala's industrial Backwardness: Exploration of Alternative Hypotheses', Economic and Political Weekly, Vol.21#14,5April, 1986, pp577-592.

36

Recommendations for Modernisations in 1987

The State Planning Commission in 1987, recommended mechanisation. Its

recommendations emphasised mechanisation on one hand and strengthening of ca.

operative organisational structure on the other to infuse new energy to the coir industry.

According to the commission all natural fibres, jute, hemp, flax and sisal face severe

competition from synthetic fibre and coir is not an exception, The survival of coir industry

in Kerala crucially depends upon reducing the cost of production, improvement in quality,

new uses and diversification of end uses of the fibre.

The commission was aware that in the short run the mechanisation of coir from

the crushing stage to spinning and weaving might lead to unemployment. But the

commission felt that there is no other alternative. It felt that India would be squeezed out

of the international market as other countries that compete with India are on the fast track

in mechanising and modemising their industry. Eventually their products would be

superior in quality and cheaper in price. With the primitive technology, the country and

the state in particular were on a sure road to decay and loose its market. A sure sign of this

trend was indicated by the planning commission, when it found the value of the coir

products of the state stagnating around Rs.100 crores for several years prior to 1987.

Kerala Started Loosing Monopoly by the End of 1980s

Apart from competition from outside, Kerala faces competition from within the

country. In the seventies and eighties there had been a tremendous increase in the coconut

production in states other than Kerala especially in the states of Tamilnadu and Karnataka.

In 1957-58, all states other than Kerala produced only 28 percent of the total coconut

37

production in India. In 1990-91, it rose to 53.4 percent. As raw material has become

freely available in these states, coir industry is developing in modem lines with

sophisticated machines in these states. With the result, coir industry is no more a

monopoly of Kerala State.

A Change in the Outlook towards Modernisation from 1990

Such a stiff competition both from within and outside forced a change in the

outlook towards modemisation of the industry among the Trade Unions in Kerala. At the

same time there were strong signals of a good market for coir products. The first half of

nineties appeared like the dawn of prosperity for the coir industry. Preference for the

biodegradable and natural products is the order of the time and the slogan of the

environmentalists all over the world. British Government had banned the use of

polyurethane foam for mattresses and upholstery for reasons of safety. Similar bans will

soon be imposed in all the western countries due to the environmental awareness. This is

likely to promote a wider use of mattress fibre. The new coir products like coir

Geotextiles and poly-coir seems to have unlimited scope for marketing. Modernisation

process is in its full swing in India now to make use of this opportunity. Consequently the

modemisation process in the Coir industry in Kerala commenced all on a sudden in the

year 1990-9 1.

Achievements of Coir Board

The active intervention of the Coir Board through research and development,

extension services, export promotion activities, development of domestic trade, known

fibre development, scheme for financial assistance, Training personnel, Welfare

measures, Steps for quality improvement, assistance to small scale manufacturers,

Entrepreneur Development Programme, Mahila Coir Yogana and the Integrated Coir

Development Programme are some of the achievements of the Coir Board which have

contributed greatly towards the modernisation of the coir industry.

Research and Development

The Schemes/projects under Research and Development are being implemented

through the Central Coir Research Institute, Kalavoor, Kerala and the Central Institute of

Coir Technology, Bangalore, Karnataka. The emphasis is for modernisation of

production infrastructure for elimination of drudgery in manual operations for attaining

higher productivity quality upgradation and product development and product

diversification for bringing up the coir industry globally competitive.

The major achievements of the research schemes for the year 1997-98 as reported

in the Annual Report of the Coir Board are briefly furnished below:

1) An International Workshop on wet processing of coir.

2) Achieved freeze drying of "Coirret", the bacterial cocktail for reducing the retting

period of coconut husk so as to ensure easy handling and increase the marketability

of the products.

3) 3 1 samples of composted coir pith were tested for NPK content.

4) Many training p rogmmes in the methodology uf composting of coir pith and

effluent treatments of ret liquor were conducted.

39

5 ) 108 designs were evolved out of which 48 designs published in the Coir News and

copies of 56 design cards were supplied to coir entrepreneurs.

6) 235 shades were matched and dye recipe has been furnished to the exporters.

7) A total of 152 samples of coir products were tested.

8) Operationalised the indigenous power-loom.

A brief report covering the objective, progress/achievements etc, of various

programmes aimed at under the Science and Technology during 1997-98 is given below.

Modernisation of Extraction and Processing of Coir

The industrial scale demonstrations on the application of 'Coirret' were

conducted as a measure of popularisation for the use of Coirret in conversion of green

husk coir fibre to the quality of retted coir fibre. Training was extended to 56 trainees

under the training programme on treatment of COIRRETPITHPLUS and details on the

method of treatment of 'COIRRET' on husWfibre and 'PITHPLUS' on coir pith for

composting of coir pith were furnished to the participants. Details on the treatment of coir

retting emuents to make the process pollution free was also explained and demonstrated.

Studies on analysis of lignins, pectins and semi cellulose in coir fibre derived from

different rening regions were also continued. Service facilities for manufacturing coir-

needled felts of different densities were extended to the trade.

Development of Coir Machinery

An improved motorised ratt with only two gears and compact size was fabricated.

A tappet for weaving door matting on the semi-automatic loom was designed and

fabrication of the same is under progress.

Development of Design, Testing and Standardisation

Development of designs of market interest for coir products, testing of coir, dyes

etc at Central Coir Research Institute (CCRI) and Central Institute of Coir Technology

(CICT), standardisation of quality specification for coir items are the activities under this

project. 108 designs were evolved to incorporate on fibre matdcreel mats for weaving and

stencilling besides 48 designs for publishing in Coir News. Copies of 56 design were

supplied to coir firms for meeting their export orders.

Dye House

A total quantity of nearly 616 MT of coirljute yam was dyed in different shades

and 49 MT of dyedhleached coir materials were dried. A number of softened coir

samples were prepared by treating with caustic soda. The treated coir fibres were

evaluated for flexural rigidity.

A mesh matting of high quality has been developed on the jacquard machine with

suitable modification, which can be, unfolded to a width of 3.4 metre even though the

width of jacquard loom is only 1 mtr. It is beneficial to the coir industry as a wider fabric

can be woven on the small width machines.

41

Demonstration on laying of coir Geotextiles for prevention of soil erosion was

carried out at Sikkim. A total area of 2000 M2 of land has been laid with coir Geotextiles

and gratis slips were planted as vegetative cover. Coir Board monitored the work on coir

Geotextiles carried out at Upputhodu in ldukki District and planted fresh grass slips

before the onset of Monsoon in the areas affected with serious drought. Coir Board laid

1550 m2 of coir Geotextiles at Kudal under the Konkan Railway Project. A total area of

1240 m2 of eroded land slope was protected with Coir Geotextiles of H2M5 quality at

Cheruthoni at ldukki District.

Coir clinics were conducted at different places to demonstrate the different

methods of spinning and composting of coir pith into organic manure using pithplus.

Technical guidance is extended to entrepreneurs in setting up of coir based industrial

units.

Export Promotion

Export of coir and coir products from India during 1997-98 increased both in

quantity and value when compared to the export during 1996-97. During the said period

coir export From India amounted to 49850 tonnes valued at Rs.238.93 crores as against

46369 t o w valued at Rs.212.58 crores exported during 1996-1997. The increase

recorded in quantity was 3481 tomes or 7.5 percent and in value Rs. 26.35 crores or 12

Percent. The item-wise cxpon of coir and coir products during 1997-98 with comparative

fig^ for 1996-97 is given in Table 2.1.

Table 2.1

Export of Coir and Coir Products

Q = Quantity in tones V = Value in Rs. Lakhs

Source: Annual Report of the Coir Board 1997-98

The table indicates that. four major items viz Coir Yam, Coir Mats, Coir

Matting and Coir Rugs and Carpets put togcthcr account for 95.79 percent of thc total

earning for the yea! 1996-97. The same wend also prevailed during the year 1997-98.

Coir was exported to 66 countries all o m Ihc world. The USA mnains to be the

largest importer of coir from India followed by UK and h e countries in West Europc

namely Netherlands, Gcnnany, I d y , Frmce. Australia, Spain. Belgium and Sweden

continued 10 be the inajor &as for coir and coir products The otha cotmtrieg which

im~olted substantial quantities of coir during the year 1997-98 mn Portugal, Caarda,

w, Gncce, Japan, UAE, Israel, Turkey, South Africa and lrisb Republic.

43

Countrywise export and its market share for three major items viz. Coir Yam,

Coir Mats and Coir Matting are presented in Table 2.2,2.3 and 2.4 respectively.

Coir yam constitutes 32 percent of the total export of wir items from India. 26

countries imported coir yam from lndia during the year 1997-98. The major markets for

Indian coir yam in the order of importance on the basis of the quantity imported is given

in Table 2.2. From the table it is clear that Italy ranks first in the importing of Indian Coir

Yam, followed by Netherlands and USA.

Table 2 3

The Major Markets for Indian Coir Yarn (1997-98)

9 1 Kuwait 10 1 UAE 1 2 1 - 1

Source: Annual Report of the Coir Board 1997-98

I Rank

Coir mat was the next major item of export. 60 countries imported coir mats h m

India during the year 1997-98. 10 major markets for coir mats from lndia on the basis of

quantity imported are given in Table 2. 3.

2 Country

3 Percentage

Share

4 % variation in growth of export compared to

Table 2 3 - Major Markets for Coir Mat8 (1997-98)

I 2 1 3 1 4 Rank 1 Country I %Share I %variation in growth

1 I I I of export compared to /

Source: Coir Board

It can be seen from the table that USA is the largest importer of coir mats from

lndia followed by UK.

Coir matting was imported by 43 countries from lndia during the year 1997-98. It

accounted for about 14 percent of the total quantity exported. Western countries are the

major importers of coir matting. Table 2.4 shows the 10 important markets for coir

matting.

Netherlands ranks the top followed by U K and Germany.

Table 2.4 - Important Markeb For Coir Matting (1997-98)

Source: Coir Board

Rubberised Coir is another important product of coir in the world market. Table

2.5 shows the 10 important markets for rubberised coir

The performance of export promotion activities in 1997-98 culminated in going

beyond the expectations of the Government by exceeding the export targets of the

Government. Ministry of Textiles, Government of India fixed a target of US % 60 million

for export of coir and coir products during 1997 - 98. The rupee conversion of the target

works out to Rs. 215 crores. Achievement in terms of target during the period 1997-98

works out to I I I percent.

Export- scrv~ccs and assistance

Coir Board continued to implement various programmes of export- services and

assistance. They included scrutiny and registration of export contract, Enforcement of

Minimum Export Price (MEP), Checking of invoices relating to export, Purchase Price

16

Enforccmmt Scheme [PP (E) S], issue of certificate of origin under Generalised System

of Preference (GSP) scheme and settlement of claims and disputes with regard to export

dissemination of information on export procedures received from All India Shippers

Council, and the like. Only those who are registered with Coir Board were allowed to

export coir and coir products. There were 147 registered exporters on the rolls as on 3 1 - 3-1998. Apart from these registered exporters there were 210 exporters who possessed

permission to export on a case to case basis.

Regulating Exports

Coir Board is operating a scheme to regulate the export of coir and coir products

by requiring the registration of export contracts. All orders for export of coir fibre, yam,

products and coir pith have to be registered with Board. Order sheets of orders, which

satisfied the Board, are suitably endorsed for customs clearance. Export contracts are

being registered at the Board's Head Quarters at Ernakulam and Export contract

Registration Office at Alleppey and Cherthala. During 1997-98, 5247 export contracts

covering 107045 tonnes valued at Rs. 46579 lakhs were registered.

Participation in Fairs Abroad

The Board continued its programme of participation in important fairs and

exhibitions held abroad for promotion of coir and coir products. Exhibitions and fairs

offer an excellent opportunity to highlight the advantages of coir as a natural fibre and

lending its message to a large number of people.

During 1997-98 the Board participated only in Domotex International Fair,

Hannover, Germany held during I@ to 13' January 1998. The trade enquiries received

were circulated among the Indian exporters for immediate follow up action and publicity

abroad. Publicity for Indian coir continued in association with British Indian Coir Mats

Association, German Coir Association and Scandinavian Coir Association during the year

under report.

Development of Domestic Market

The Coir Board has been adopting various measures for popularising coir goods

and expanding the domestic market. Measures in the direction include establishment of

Showrooms & Sales Depots, participation in fairs and exhibitions, implementing rebate

scheme, organising generic publicity through print and electronic media. Quality control

and providing market development assistance to state supported organisations for

enlarging marketing network and participation in exhibitions within the country.

As per the data available with the Coir Board, comparing the internal

consumption of coir in 1996-97 and 1997-98 it is found that coir fibre consumption has

increased from 21,500 tonnes in 1996-97 to 25,800 tomes in 1997-98. Consumption of

Coir yam has increased from 90,100 to 99,110 tonnes, Coir product increased from

14,200 to 15,190 tonnes, Coir rope increased from 41,500 to 46,480 tomes, Curled coir

increased from 1,220 to 1,460 tonnes and Rubberised coir increased from 34,100 to

40,920 tonnes during the said period. The increase is relatively more in the case of

mbberised coir, which is a product of modemisation. In order to encourage the sales

promotion at the dealers level in the domestic market, the board disbursed over Rs.5

crons as rebate to various states Governments and Showrooms & Sales Depots of the

~ o a r d during the year 1997-98. Of which nearly Rs.35 crores was distributed to Kerala

In addition to participating in exhibitions and fairs abroad, the coir board also

conducts exhibitions periodically at major coir producing and marketing centres in India.

Ten Internal Exhibitions were conducted by the Board during the 1998-99.

Among the ten exhibitions conducted by the Coir Board seven were in Kerala.

Rather than conducting such exhibitions in Kerala where there is maximum awareness

about the coir products and uses they may be conducted in the north and north-eastern

parts of ow country where there is a large potential market. Though the exhibitions in

such places may not fetch immediate dividend as reaped from Kerala it will help in

developing the domestic market in the long run.

Brown Fibre Development

The Brown fibre is extracted from unretted husk of coconut. Production and

further processing of brown fibre is largely concentrated in the coconut producing states

other than Kerala The brown fibre sector of the coir industry continued to show

spectacular progress during the year 1998-99. The development activities undertaken by

the Board aiming at the betterment of the sector were implemented through the three

Regional Offices of the Board at Bangalore, Visakapatanam and Pollachi for development

of the brown fibre sector during 1997-98.

crores as rebate to various states Governments and Showrooms & Sales Depots of the

Board during the year 1997-98. Of which nearly Rs.35 crons was distributed to Kerala.

Exhibitions

In addition to participating in exhibitions and fairs abroad, the coir board also

conducts exhibitions periodically at major coir producing and marketing centres in India.

Ten Internal Exhibitions were conducted by the Board during the 1998-99.

Among the ten exhibitions conducted by the Coir Board seven were in Kerala.

Rather than conducting such exhibitions in Kerala where there is maximum awareness

about the coir products and uses they may be conducted in the north and north-eastern

parts of our country where there is a large potential market. Though the exhibitions in

such places may not fetch immediate dividend as reaped from Kerala it will help in

developing the domestic market in the long run.

Brown Fibre Ikvelopment

The Brown fibre is extracted from unrcncd husk of coconut. Production and

further processing of brown fibre is largely concentrated in the coconut producing states

other than Kerala The brown fibre sector of the coir industry continued to show

spectacular p r o p s during the year 1998-99. The development activities undertaken by

the Board aiming at the batmnent of the sector were implemented through the three

Regional Ofiioes of tbe B d rt Bangalon, Visrk;lpltPnam and Pollachi for development

of the brow fibre sector during 1997-98.

Scheme for Financial hbtance

The Board has been operating a scheme for extension of financial assistance to

coir entrepreneurs for the establishment of new wir units. With a view to ensure

uninterrupted power supply to the coir production units even during the period of power

cut another scheme was in operation for grant of financial assistance for installation of

generator sets. These schemes have given a new face to the brown fibre sector.

During 1997-98 financial assistance amounting to Rs. 62,58,1981- was released to

75 coir units. Since then several new coir products like bonded ply Board, Coir ply, coir

needled felt etc. have been developed. With the invention of motorised spinning ran the

traditional ratt and treadle ran have become obsolete. As the Indian coir industry is facing

stiff competition from other coir producing countries and also from artificial fibres it is

imperative to popularise the production of diversified end products. For this, the scheme

for grant of financial assistance has to be enlarged. With this end in view and also to

accommodate the element of wst escalation in the cost of machinery, the Board is

proposing to amend and streamline the different schemes for extension of financial

assistance. Action in this regard has been initiated during 1997-98.

Training Personnel

One of the major activities of the Board is to develop skilled manpower for the

coir industry. The Board runs training institutions in the major coir producing states in

India to impart training in coir processing and manufacture of value added products. The

National Coir Training and Design Centre, Kalavoor, Alleppey, gives training to the

people in Kerala. This institution is engaged in imparting intensive Training in advanced

50

methods of various processes of manufacture like spinning, dyeing, bleaching, weaving

etc. It conducts refresher courses for executives in coir industry. It also organises,

orientation training for Government officials, craft teachers, technical officers, and

business managers of coir cosperative societies. It provides technical Consultancy and

extension service to the trade. It also organises field training in rural areas to train local

candidates and special training to women in spinning coir yam on motorised ratt under

Mahila Coir Yojana and conduct short term training in the application of 'coirret' and

'pith plus' and popularise new pattern, designs and products.

The National Coir Training and Design Centre established in 1965 offered

Advanced training courses, of different durations. Training on spinning on motorised ran

under Mahila Coir Yojana and Short term training in composting coir pith and treatment

of coirret etc were also conducted by the Coir Board in 1997-98.

The advanced training course is intended for middle level executives sponsored

by small-scale manufacturers, registered with Coir Boardcoir co-operative societies!

Government departments and the other courses were meant for actual coir workers

already in Coir Units. Two batches of Anisans were trained every year. The training

under Mahila Coir Yojana scheme is intended for giving 2 to 3 months training in

spinning coir yam on motorised ratt to rural women. The short term training in composing

coir pith and treatment of coirret is to educate entrepreneurs in the use of coirret in

converting mechanically extracted green husk fibre into white fibre and recycling of ret

liquor. In addition to the training programmes, National Training and Design Centre also

organise distribution of motorised ratt to the beneficiaries of Mahila Coir Yojana

~ccelentinp modernuation in Spinning

To modemise the spinning sector, spinning of coir yam on motorised ratt is being

popularised by the Coir Board among coir yarn spinners, particularly among traditional

yam spinners. As a measure to promote this new technology in spinning coir yarn and to

develop a spirit of competition among spinners, the Board held competition at National

level in spinning coir yam with motorised ratt during 1997. Competition was held in three

levels viz., local, regional and national.

Integrated Coir Development Programme (ICDP) of Kerala from 1993

The ICDP scheme aimed at setting up of I00 Defibring Units and 200 Motorised

Spinning Units (each unit consisting of 100 Motorised Ratts.) The Government has

approved the proposal for 171 units (46 defibring units and 125 motorised units) of the

ICDP, Kerala. The total cost of the 171 units comes to Rs. 26.76 crores, of which

Government of India's share is 20 percent. Further it was decided that the matter related

to the remaining 129 units (54 Defibring Units and 75 Motorised Spinning units) During

1997-98, the Government of India has released an amount of Rs. 145.35 lakhs, towards 20

percent central subsidy under ICDP Kerala to Government of Kerala.

Welfare Measures Taken up By the Coir Board

Adoption of Model Coir Village in different coir producing States and

implementation of various welfare programmes for the benefit of the coir workers is a

novel and well-appreciated scheme of the Board.

In order to provide with basic amenities of life aad to ameliorate the living

conditions of w u &em in Kcrala, Coir Board had stPlted the implementation of thc

Model Coir Village Pmgramme. Accordingly, the Cou Board had adopted 57 villages in

Kerala and 27 villages in thc Bmwn fibre sector in other states.

In 1998 Model Coir village schemc was extended lo 10 more villages in Kerala, 3

villages in Kametaka and one more village in Andhra Predesh. The Board will dimtly

implement the Model Coir Village Scheme in Kcrala

Kenla Coir Workcn Wdlrre Fund

T h e Coir Board is contributing a lump sum amount every year from 199 1-92 on

wards 10 he Kcnla Coir Workers Wclfare Fund for he benefit of wit workers in K d a

I t provides for pension, family pawon. assistance to permanently krr~porarily disabled,

cx-ptia payment lo spousc uho mt Mth fatal xcidmt. assislance for funeral expenses,

r r i m b u m t of medid expnurJ. pod metric e d h o n rbohrhp'stlpcnd to thc

childrrn ~~c t o d matcmily cxpnucs ac . .

l~sunocr Sckrr to Coir W o h

Thc udm engaged In Coir ac~iv~tia are the poorest of the poor. T k y lack

vcurity as in ~hc ccuc of d m In other industries. k f o r e thc Board has

~mplnntnied am Sdmc to secure theu lifc against sccidenl, illness ctc.

During 1997 Hindustan Coir, a production unit of Coir Board, introduced a

quality Mmgement System in accordance with the IS0 9002 standards. In recognition

of this the Bureau Veritag Quality International, Bombay awarded the covered IS0 9002

Ccrtifiate to Hindusian Coir. Thus i t became rhe fist unit in the traditional seaor of the

Coir Industry to achieve the rare distinction. The worken of the Hindustan Coir factory

wm paid salary and other allowances as applicable to central Government employees.

They arc also paid incentive, bonus, production-linked bonus and &r benefits during

1997.98.

Steps For Quality lmprovcmtnt b 1997-98

Thc Board gives utmost imponance to create quality awareness among

workm and manufacturers engaged in rhe production of coir about the need to mainlain

high standard to the coir Items produced. During UIC reporting year 15 quality camps in

ICDP units to improve quality of yarn spun on motorid rats and 5 camps to impmve

quality of goods tnanufacturrd in product sector were conducted.

The kwd provides ass~stancc for the construction of loom sheds to d l - x a l e

~ u f a w c n . In addition to this there is another rhcme for providing Common Facility

Centre 10 h SSrmll.Suk unlu. Common facility centrc to provtde modern facilitia for

bk&ng urd dyeing of coir Abn and yam to dK small-scale units engaged in the

m n n u f ~ A ~ ~ of export quality coif products. The scheme provides for grant of one time

assistance for the purpose.

Eatreprenear Developmeat Programme

The Board continued to organise Entrepreneurial Development Programmes and

Quality Improvement Programmes at periodic intervals. EDPs are conducted to

disseminate information about the various schemes of the Board and services and

assistance available to Enllrprrneurs from the Board. QIPs are organised for c d n g

armrrncss among coir workm. supervisors and ~ndustrialists to produce quality coir and

coir products.

Mrbih Coir Yojror

Coir Industry is a lradit~onal conage indusp in which more than 5 million people

find their way OUI for living. Of the tad work force about 80 percent are women. Mahiia

Coir Yojana is the first women orimtd xlftmployment programme in the industry. The

scheme envisages distribution of 4000 motorid edir yam spinning rat& to women

workers who arc trained to operate Ihc motoriscd ran and are able to raise the beneficiary

contribution by means of own rrsourccs or loan. Under this scheme a one rime subsidy to

thc tune of 75 pacent of thc cost of motorid ran with a maximum ceiling of Rs.7500 is

bang granted to women workers for procurement of motorid ran provided they m e t

thc Rmaining part ofthe coa of the ratt as mentioned above.

Current Statua of Coir Industry in India

The development of coir industry has all along been in areas where there is

concentration of coconut cultivation and availability of coconut husks. Among the States

in India, Kerala is the largest producer of coconuts contributing as much as 42 percent of

total production. Coir industry in India had its beginning in Kerala. With the expansion of

coconut cultivation coir industry is coming up in Tamil Nadu, Karnataka, Andhra

Pradesh, Orissa, West Bengal and Assam.

Kerala, however, still straddles the Indian coir industry accounting for nearly 90

percent of the total production and almost all the exports. In 1987, the production of

brown fibre was to the tune of 65.676 tonnes. The largest producer of brown fibre is

Tamil Nadu accounting for 68 per cent of the total brown fibre production. The share of

the second largest producer, Karnataka, is 22 percent, Andhra Pradesh accounts for eight

per cent and Orissa produces another two per cent. The installed capacity is nearly 80,000

tonnes. So the capacity utilisation works out to roughly 80 per cent and husk utilisation to

60 per cent. In the year 1989-90 the aim was to increase the brown coir production to

75,000 tonnes at 80 percent capacity utilisation.'

Table 2.5 shows the state-wise area of cultivation of coconut and production of

coconut in India during 1995-96 and 1996-97.

(Asha Rai, The Economic Timer Bangalore December -8-1989, P.7

56

Table 2.5

State-wise Coconut production in India.

Statel UT

Andhra Pradesh

Goa

Kamataka

Kerala

West Bengal I 23.1 1 23.7 1 279.4 1 313.1

Andarnan & I 24.4 1 24.7 1 85.4 1 85.4

Area ('000 ha) . 1995-96 1 1996-97

90.0 1 90.0

Maharastra

Orissa

Tamil Nadu

Nicobar

Lakshadwee~ 1 2.8 1 2.8 1 27.0 1 27.0

Production (Million nuts)

1995-96 1 1996-97

1231.4 1 685.9

24.7

278.8

980.0

I I I

Pondicherry 1 2.1 1 2.1 1 31.5 1 31.5

8.2

47.3

322.5

24.7

290.0

1010.0

I t can be seen from the table that Kerala ranked first among the coconut

producing states in India in respect of area under cultivation of coconut trees and

production of coconuts. It is followed by Tamil Nadu and then Kamataka. For long, coir

was synonymous with Kerala. This industry has a very long tradition in Kerala and is in

fact more than 150 years old in that coastal state. But in the past couple of decades it has

also spread to the neighbouring states. However, the industry in Kerala is quite different

from the one in the other states.

15.1

53.0

328.0

LAII India

119.0

1450.9

5908.0

1830.9 11892.5 112952.3 / 12987.5 1

119.0

1493.0

5759.0

169.1

246.8

3257.6

Source: All lndia final estimate of coconut production, Directorate of Economics

and Statistics, Ministry of Agriculture, Government of lndia 1996-97.)

264.5

271.5

381 1.6

Coir Industry in India consists of two distinct segments namely: (1). White fibre

and (2). Brown fibre. White fibre is extracted from husk of matured coconut after a

unique process known as Retting. For retting, the green husk is kept in saline water for a

period of six to eight months. Then it is taken out and beaten by hand. This process

removes the 'lignin' and 'tannin' and gives coir the white colour from which white fibre

is extracted by hand.

Till recently almost all the stages of production in this industry in Kerala were

manual. This highly labour-intensive industry provided employment to nearly four lakhs

of people in Kerala in 1988. India has the virtual monopoly for white fibre in the world.

Now Sri Lanka has also started producing white fibre. White fibre is more suited for

s p i ~ i n g coir yam, mats, matting, carpets and rope. In fact, white fibre is ideally suited

for carpets and mats because it is soft in nature and hence conducive for spinning. It also

assimilates colour better. As such it facilitates the manufacture of a wide range of

products in various designs, shapes and sizes

The brown fibre industry developed in other states is 'rnechanised'. Simply

speaking, the coir fibre produced with out retting by mechanical means is called 'brown

fibre'. The dry coconut husk is directly fed into the machine for the extraction of fibre. In

fact, the brown fibre industry in India is patterned after the coir industry in Sri Lanka

where the coir fibre extracted mechanically met with great success.

Brown fibre comprising of bristle fibres, which are the coarser, thicker and longer

staples and mattress fibres, which are finer and shorter staples, is extracted from unretted

husk. The retting time for making the white fibre can be now reduced by using the

58

"coirret" developed and popularised by the Coir Board's Research Centre. With the

introduction of coirret for converting mechanically extracted green husk fibre into retted

white fibre the difference between white fibre and brown fibre became less pronounced.

Brown coir is used to make coir ropes. It is better suited to make 'rubberised

coir', which is being widely used to make mattresses, and pillows and are also used as

padding and underlay for carpets. Rubberised coir is made of millions of tiny coir

springs, which are uniformly sprayed, with latex to make the fibre tough and at the same

time comfortable.

The largest concentration of coir industry is in Kerala. This is because of the

existence of natural retting facility and extraction of golden fibre from refled husk by

manual labour. In the states other than Kerala the art of natural refling has not been

practised to any appreciable extend. The estimated production of coir and coir products

during 1996-97 and 1997-98 are given in Table 2.6

Table 2.6

Production of Coir and Coir Products (Quantity in tones)

(b) brown fibre

Coir Yam Coir products

Coir rope

Curled Coir 24000 ,, 26000

Item Coir fibre (a) white fibre

It can be seen from the Table 2.6 shows that brown fibre production in the

1996-97 127700 MT

1 Rubberised coir

country has increased by 20,000 tonnes (I4 per cent) in the year 1997-98 compared to the

1997-98 127700 MT

35000 ,, 1 37000 ,, 1

previous year. Similarly production of Coir Yam has increased by 12500 tonnes (7 per

cent), Coir Products by 3500 tomes (7 per cent) Coir Rope by 100 tonnes (0.3 percent)

Curled Coir by 2000 tomes (8 per cent), Rubberised coir by 2000 tomes (6 per cent). But

Source: Coir Board

the White fibre production remained constant, because all the states other than Kerala

were producing only the brown fibre

The current position of development of coir industry in the various States can be

seen from the State-wise distribution of coir units in the country, given in Table 2.7

Table 2.7

State-wise distribution of coir units

Units Registered as on 3 1.3.98 1 / Kerala 1 5143

2 1 Kamataka 1 196 / 3 / Tamil Nadu 1 884 /

4

5 6

7 8

9

Maharastra

Orissa West Benaal

10 1 Gujarat

9 100 20

North Eastern Region

Pondicheny

Goa

1

1 1 / Andaman & Nicobar

17 Uaar Pradesh

19 Delhi

20 Total 667 1

12

6 2

1

14

15 16

Source: Coir Board

12 / Andhra Pradesh 1 265

The Table 2.7 shows that Kerala has the maximum number of coir units with

5143 units registered with the Coir Board, followed by Tamil Nadu with 884 and Andhra

Pradesh with 265 units. The reasons for the predominance of Coir Industry in Kerala are

examined below.

Rajasthan

Haryana

Puniab

1

1

2

prominence of the industry in Kernla

As per the survey report on the coir industry in Kerala conducted by Kerala

Statistical Institute, the annual fibre production in the state was to the tune of 179365

tonnes valued at Rs. 12723 lakhs. In that 161276 tomes valued at Rs. 11455 was white

fibre and 18089 tonnes valued at Rs. 12723 was Brown fibre.6 The entire white fibre was

produced by Kerala, which is endowed with a long coastal belt and extensive backwaters

and lagoons, which provide ideal condition for rening husks. Nearly 80 percent of the

industry is located in Kerala. About 3.83 lakhs workers are engaged in the industry in

Kerala. Out of this 80 percent of workers are women. There are 682 different types of

co-operatives in the state.'

The location of coir industry in Kerala is governed by various factors- historical,

geographical and economic. Prominence of this industry in Kerala is mainly due to certain

specific advantages. "The location of an industry is usually determined by certain

fundamental economic causes, though other factors -historical or accidental- may also

influence it. The factors which influence the choice of a place of production fall into two

broad groups: first, the factors which determine whether the transport costs involved will

be at a minimum and secondly the factors which make for lower costs of production at

some places than at other places. All commodities as distinct from services must have at

least two points of attachment to the earth's surface, a place of consumption of the

finished commodity and a place of origin of a raw material. The economics that are

Survey of Coir Industry in Kernla, Kcrnla Statistical Institute, 1997, p. IS

62

presumed in this may arise from the cheep supplies of any of the factors of production.

Thus cheap land, cheap labour, cheap capital and efficient management may all attract

production from other places where these prices are high."'

The location of coir industry can be analysed with the help of the Weberian

theory, which is widely accepted? Weber has classified the factors, which determine

industrial location on the basis of the cost of production. Cost of raw materials and power,

cost of labour and the cost of transportation as the main factors determining location.

Therefore the orientation of the industry depends largely on the type of materials used and

the nature of its transformation in the process of production.

Availability of raw material

Coir industry is the most important traditional industry in Kerala. "The raw

material of the coir spinning industry is the coconut husk which has great bulk and weight

and low value. The material index, i.e., the proportion of weight of used material to the

weight of product, is therefore, very high in the case of coir and the industry tends to

gravitate to the material producing areas" ' O

Natural facilities for retting:

Fibre extracted Erom coconut husk is the raw material for the manufacture of coir

Yarn and various coir products. There are two varieties of coir fibres viz. white fibre and

Annual report oilhe Coir Board, 1997-98,p.21 Dr. Ballkrithna R, Regional Planning in India. 1948, p.1 Alfred Web=, 'Theory of the location of the indusby, 1929.

brown fibre. White fibre that is superior to brown fibre is extracted from retted husk. To

enable this, raw husk is soaked in brackish waters for about 6 to 10 months. This process

is called retting.

The backwaters of Kerala provide excellent natural facilities for retting and

defibring processes and for the transportation of fibre at a very low cost. Since the

backwaters are spread over the entire length of Kerala, the retting, defibring and spinning

processes are widely dispersed. Hence, coir spinning process is virtually done near the

houses of labourers. This pattern of localisation brings out a high degree of economy in

the cost of production. The industry has been expanding over the years and now it extends

over almost all the villages in the coastal belt of Kerala and some places of Tamil Nadu,

Andhra Pradesh, Karnataka and Pondicheny.

The availability of brackish water in the backwaters and lagoons of Kerala alone

does not help retting of husk. Water gets contaminated with microbiological actions

taking place during retting. The contaminated water has to be replenished by fresh water

at frequent intervals. Kerala is blessed by nature with this facility." In short, availability

of plenty of coconuts, accessibility to roads, canals, rivers the presence of brackish lakes,

and lagoons replenished by rain water and the presence of skilled and experienced labour

have contributed greatly to the location of the coir industry on the coastal areas of Kerala.

la Smith. H, Report of the Unemplopent Enquiry Cornminet, Government of Travancore, 1948, p.12. 'I hkl, S.J. Report of coconut and coconut products in India, Government of India Publication 1944.P.40.

Cheap and Skilled Labour in abundance

Coir industry is the most important industry in Kerala in terms of work force

employed. It is a labour intensive industry contributing significantly to the economy of

the State. Workers in this industry are drawn from the most disempowered social groups,

mostly belonging to the 'out' castes.12 As the extraction of fibre and spinning yam are not

actively persuaded, during the monsoon seasons, the coir workers in spinning sector have

been getting work only for less than 150 days in a year. In addition to this, the wage rates

are lower in spinning than in agriculture. Hence the majority of coir workers are forced to

live below poverty line.

The extraction of fibre, spinning of coir yam and manufacture of coir products

sustain a large number of people in Kerala, where alternate avocations for gainful

employment are relatively limited. In terms of employment, coir industry is the most

important among Kerala's technologically backward, low productive indu~tries.'~

C h a p water transport:

"The cost of transportation of the raw material is an important factor because of

the low value of the product which can not meet high transportation co~ t . " . ' ~ Retting can

be made only in places where there are abundant facilities for making retting pits and easy

means of water transport. Retted husks are heavier than green husks. In the defibring

process the retted husk is beaten and the pith is removed, resulting in a good reduction of

I' govern men^ of Kcrala, State Planning Board, Economic Review 1998, p.110.

I' hpmment of sconomicr and slatistics, Report on coir workers Census in Kernla, 1988.

weight. Thenfore transporting them to distant places would be prohibitive. Hence

extracting fibre out of them is done near the places where the process of retting is done

viz., soaking pits or retting yards. The backwaters spread over the entire length of Kerala

provide this facility. Hence this process is conveniently done along the banks of

backwaters of Kerala.

Coir manufacturing

Location pattern of coir manufacturing is totally different from that of retting

defibring and spinning. Coir manufacturing in India is mostly concentrated at Alleppey.

Though coir is supposed to be the lifeblood of Alleppey, yam required for the

manufacture of coir to a large extent is brought to Alleppey from various places in Kerala.

"The movement which started after the First World War partly due also to the expansion

of the industry resulted in the establishment of the manufacturing units in the out skirts of

Alleppey, Chertalla and Cochin. But, of all places, Cochin has great advantages of

situation for an expon industry like coir manufa~ture."'~

The reason for a different pattern of location of coir manufacturing comes from

the difference in the type of raw material used for the manufacturing process. The fibre

and the yam, which forms the raw material for the manufacturing, are pure raw materials

imparting their entire weight to the produce. "Availability of the raw materials in close

Smith. H, Repon of the Unemployment Enquiry Committee. Government ofTravancon, 1948, p. I2 I' Rcp~rt of the Committee on coir mats and matting manufacturing industry, Government of Travancore

Cochih 195S.p.20.

66

proximity is not a critical one as the fibre and yam are pure materials. So the manufacture

need not necessarily be at the place of out put of the raw material^."'^

Momentum of an early start.

"The location of the manufacturing industry in Kerala was partly due to the long

association of English investors with Alleppey. The first coir factory in India was

established in 1859-60 by Mr.James ~arrah."." "In those days Alleppey was thinly

populated, the population being less than 15,000, with jungles strewm over the entire area.

Communication facilities by road were scarce, but water transport was fairly well

developed with two canals connecting the port and the backwaters. Alleppey could not

claim even cheap labour supply. Bulk of the labour had to be drawn from the outskirts of

the area".'8 '' Even as early as 1900, two-third of the employees were immigrants and by

1935, nearly 25 per cent of the labour was imported.'"9

Accessibility to foreign markets

Coir manufacturing started with an easy foreign market. Therefore its

concentration at Alleppey and Eranakulam would have also been influenced by the

accessibility of foreign market.

l6 Smith. H, Rspon of the Unemployment Enquiry Committee, Government of Travancore, 1948, p.10. l7 Report of the Boud of conciliation for aade Disputes in the mat and matting Industry, 1939. " B I L I ~ U ~ i t h w Cior Industry in India, Coir Board. Cochin, p. 10. l9 Vollurl Brothers Product Report. 1948.p.3.

67

A strong Cooperative Backbone

There is a strong co-operative backbone for the industry though there are

problems in the functioning of these co-operatives due to various reasons. A review of the

historical development of Coir Co-operatives is pertinent at this juncture.

Initially, the coir co-operatives were established to deal in retted husk and to

liberate the small producers from the control of retted husk dealers. The co-operatives

advanced retted husk to small producers. The producers sold yam in the open market and

settled their dues with the co-operatives. The co-operatives stepped in to buy the yam

from the producers when the market was bearish and the producers could not get a

remunerative price elsewhere. Thus the co-operatives performed the function of putting-

out industrialists to start with.

From 1970s, co-operatives began to undertake yarn production directly by

engaging member-workers. They organised both the defibring and spinning processes in

their premises. With the increasing shortage and spiralling prices of raw husk their

activities ran into a rough weather. The State intervened to ensure supply by introducing

legislation curbing long-distance movement of husk. Further, the apex marketing

federation was entrusted with the task of supplying fibre to the co-operatives. The

shortage of husk and high price, however, continued.

The name 'Kerala' stands for 'the place of Kera', meaning the place of coconut.

Among the states in India, Kerala is the largest producer of coconuts. However the

productivity had suffered a setback in 1994-95. That can be observed from Table 2.8

Table 2.8

Production and productivity of coconut in Kerala and India

(nutha) (nutha)

Sources: Agricultural statistics, Dept. of Economics and Statistics, Kerala Coconuts

Statistics by APPCC, Jakarta, and Coconut Development Board, Cochin.

From the Table 2.8 it can be seen that the area under cultivation of coconut is

gradually declining. It can also be seen that the productivity per hectare in Kerala is also

on the decline. The low productivity is mainly due to the decrease of the coconut trees in

Kerala. The area under cultivation is declining mainly due to the low productivity.

Consequent on this state of affairs the share of coconut production of the state is also on

the decline. However, the total production in the country is increasing. This is because of

the increased production in other states like Tamil Nadu, Kamataka, Andhra Pradesh etc.

The District-wise details of area and production of coconut in 1994-95 is

considered since the bulk of husk produced during 1994-95 after retting is consumed in

the coir industry in 1995-96. It can be seen from Table 2.9

Table 2.9

District wise details of area and production of coconuts in Kerala during 1994-95

Source: Department of Economics and Statistic, Govt, of Kerala.

Regarding production, it can be seen from the Table 2.9, that Kozhikode district

stands first followed by Kannur, Thrisshur and Malappuram. These four districts together

account for 51.69 percent of the coconut production in the State. Trivandrum and Kollam

district supply only 9.82 percent and 8.06 percent respectively. Alappuha district, which

is considered to be the centre for coir production in the state, produces only 6.5 percent of

the total production.

The ten coastal districts of Kerala together produce 90 percent of the total

production of coconut in the state. Productivity wise also it can be observed that

Kozhikode stands first and is followed by the northem districts of Thrisshw, Emakulam

and Kannw. This state of affairs is due to the wide spread decease of coconut trees in the

southern districts in Kerala.

A survey on Production and Consumption of Coir and Coir products in Kerala

was conducted by the Department of Economics and Statistics in 1983-84. The production

of coconuts in the three regions viz, the low land (covering the coastal belt) was 50

percent, the midland was 40 percent, and in the high land it was 10 percent. In 1994-95,

however, the production of coconuts in the coastal area accounted for 54 percent, in the

mid- land 38 percent and in the high land 8 percent. This was mainly due to the change in

cropping pattern especially due to a shift towards plantation crops like rubber in high land

and midland regions.

Despite, unfavourable factors like the low price of coconut, high wages, sharp

increase in the cost of cultivation and scarcity of rain, the area and production of coconut

in Kerala now shows an increasing m d . The ~IWI under coconut cultivation during

1997-98 is placed at 1005459 hectares and production of coconut 5728 million nuts per

m11111.

The ongoing modemisation was initiated in 1990-91 after considering the pros

and cons for years together. A large amount of money is being pwnped out by the

Government and Governmental agencies for a thorough modemisation through

mechanisation and mechanisation are hoped to cut the cost of production and increase the

volume trade at one side and feared to create unemployment at the other side. The

researcher in the subsequent chapters examines the impact of modemisation on the said

aspects

SUMMARY

This chapter deals with the i m p o m t events that took place in the Indian Coir

Industry in the past and provides the context in which the modernisation of Coir Industry

was initiated by the Government. I t also provides the necessary background information

to understand the nature of the industry and the processes involved in the industry. It

funher explains the reason for the concentration of the industry in Kerala.

The Coir Board was set up in July 1954. The Coir Board has become the official

Organisation to look after the progress of Indian Coir lndustry by assisting producers at

home and consumers' abroad.

The Task Force on Coir Industry appointed by the Planning Commission of the

Government of India in 1973 emphasised the need for modernisation of Coir Industry for

ils existence in world market. During 1974, shortage of coir fibrc caused a crisis situation

in the Coir Industry in India. The net e k t was felt in the export performance during

1974-75, which was 4975 tonnes less than the previous year. Dr.M.V.Pylee conducted a

study on 'the problems and prospects of the Coir Industry in Kerala' in 1975. He

recommended a strategy for modernisation of the industry for its survival in the long run.

He suggested mechanisation.

Many studies on coir industry have argued for mechanisation. Important among

them were the " Survey of India's export potential of coir and coir base products

conducted by the Indian Institute of Foreign Trade in 1971. " Report of the task Force on

coir industry by the planning commission in 1973. The Report of the study group of

mechanisation of coir industry in Kerala by the Kerala state planning board in 1973. Coir

Promotion Survey on Transfer of Advanced Coir Processing Technology to Developing

Countries conducted by UNTP in 1975". ' A study of the wir industry in India problems

and prospects conducted by M.V. Pylee in 1976 which cautioned modemisation of the

industry in a phased manner by introducing mechanisation through co-operatives. The

study of structure and Organisation of coir industry with particular reference to

employment in Kerala conducted by M.N.V. Nayar in 1977 also recommended for

modemisation of the industry.

All these reports favoured modernisation. However, Trade Unions continued to

challenge any step towards modernisation. The high level Study Team headed by

B. Sivaraman, which was appointed by national commission in 1978, was against

mechanisation. The study team f a v o d the banning of any further mechanisation and

argued for deregulating the husk market; but this report was denounced both by industrial

circles as well as by the state Government of Kerala. Ultimately the report was shelved.

Debate on modernisation of the industry through rnechanisation got stronger in 1980s.

With the dwindling export mark to an all time low level by the end of 1980s, the

pressure for modernisation mounted up. A study on Kerala's industrial backwardness

conducted in 1986 proved that the technologically backward structure of Kerala's

industries caused low labour productivity and minimum forward and backward linkage

rather than the high wages. It suggested that further development of the industry in the

State crucially hinge on technological upgradation. The State Planning Commission in

1987, recommended mechanisation. It's recommendations emphasised mechanisation on

one hand and strengthening of co-operative organisatiod structure on the other to infuse

new energy to the coir industry. Stiff competition both from within and outside forced a

change in the outlook towards modernisation of the industry in Kerala Consequently the

modernisation process in the Coir industry in Kerala commenced all on a sudden in the

year 1990-9 1.

The interventions of the Coir Board in various ways have contributed

considerably in rnodern~sing the industry. The research and development wing of the

Cior Board has achieved freeze drying of "Coirret", the bacterial cocktail for reducing the

retting period of cownut husk. It developed techniques for cornposting of coir pith and

emuent treatments of ret liquor. It succeeded in developing designs of products,

developing an indigenous power-loom, a motorised ran etc. Coir clinics were conducted

different places to demonstrate the different methods of spinning and cornposting of

coir pith into organic manure using pithplus. Technical guidance is extended to

entrepreneurs in setting up of coir based industrial units.

Coir Board has been engaging in export promotion activities and export- services

and assistance. Similarly the Coir Board has been adopting various measures for

popularising coir goods and expanding the domestic market. To encourage the

modernisation of the industry, the Board has been operating a scheme for extension of

financial assistance to coir entrepreneurs for establishment of new coir units and

modernisationirenovation of the existing coir units. With a view to ensure uninterrupted

power financial assistance for installation of generator sets is granted by the board.

To develop skilled manpower required to handle the modem technology initiated

in the coir industry, the Board runs training institutions in the major coir producing states

in India and imparts training to the people in coir producing states. It also organises

special training to women in spinning coir yam on motorised ran under Mahila Coir

Yojana and also conduct short term training in the application of 'coirret' and 'pith plus'

and popularise new pattern, designs and products.

Thus modernisation process of the coir industry commenced in the year 1990-91

with the blessings of the Trade Unions, Government of Kerala and the Union

Government. This thorough modernisation involving mechanisation is likely to have

impact on the economics in production, level of employment and volume of trade. These

aspects are examined in the subsequent chapters.