Professional Documents
Culture Documents
It explains the
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."
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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
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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
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 cooperative 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
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 Cumittees 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.
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
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.
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 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 wir products. This would have enabled India to capture a sizeable part
of the world market fed by European products.
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.
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
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
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.
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.
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.
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.
36
Its
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 1990-91.
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
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)
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)
4)
5)
108 designs were evolved out of which 48 designs published in the Coir News and
6) 235 shades were matched and dye recipe has been furnished to the exporters.
7)
8)
programmes aimed at under the Science and Technology during 1997-98 is given below.
Modernisation of Extraction and Processing of Coir
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
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
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
Table 2.1
Export of Coir and Coir Products
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 10be the inajor &as
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
Rank
9
10
2
Country
4
3
Percentage % variation in growth
of export compared to
Share
1 Kuwait
1 UAE
-1
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.
Rank
2
Country
I
I
3 1
4
%Share I %variation in growth
I of export compared to
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.
Rubberised Coir is another important product of coir in the world market. Table
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 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
crons as rebate to various states Governments and Showrooms & Sales Depots of the
~ o a r dduring 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.
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.
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
The National Coir Training and Design Centre established in 1965 offered
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 beneficiariesof Mahila Coir Yojana
~ccelentinpmodernuation 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.
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.
In order to provide with basic amenities of life aad to ameliorate the living
conditions of w u &em
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
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~sunocrSckrr to Coir W o h
Thc u d m engaged In Coir ac~iv~tia
are the poorest of the poor. T k y lack
of this the Bureau Veritag Quality International, Bombay awarded the covered IS0 9002
Ccrtifiate to Hindusian Coir. Thus it 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.
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.
urd dyeing of coir Abn and yam to dK small-scale units engaged in the
m n n u f ~ Aof~export
~
quality coif products. The scheme provides for grant of one time
assistance for the purpose.
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 ~ndustrialiststo produce quality coir and
coir products.
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
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.
Table 2.5
State-wise Coconut production in India.
Statel UT
Andhra Pradesh
LAII
23.1
24.4
1
1
I
2.8
2.1
1830.9
24.7
290.0
1010.0
15.1
53.0
328.0
24.7
278.8
980.0
8.2
47.3
322.5
Goa
Kamataka
Kerala
Maharastra
Orissa
Tamil Nadu
West Bengal
Andarnan
&
Nicobar
Lakshadwee~
Pondicherry
India
1
1
1
1
23.7
24.7
2.8
2.1
11892.5
119.0
1450.9
5908.0
169.1
246.8
3257.6
279.4
85.4
27.0
31.5
112952.3
119.0
1493.0
5759.0
264.5
271.5
381 1.6
1
1
1
1
I
313.1
85.4
27.0
31.5
12987.5
It 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.
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 gcoir 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
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.
Table 2.6
Production of Coir and Coir Products
(Quantity in tones)
Item
Coir fibre
(a) white fibre
(b) brown fibre
Coir Yam
Coir products
Coir rope
Curled Coir
Rubberised coir
1996-97
127700 MT
24000 ,,
35000 ,,
1997-98
127700 MT
26000
37000
,,
It can be seen from the Table 2.6 shows that brown fibre production in the
country has increased by 20,000 tonnes (I4 per cent) in the year 1997-98 compared to the
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
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
1
2
3
4
5
6
7
8
9
10
11
12
/ Kerala
1 Kamataka
/ Tamil Nadu
1
/
/
Maharastra
Orissa
West Benaal
North Eastern Region
Pondicheny
Goa
Gujarat
Andaman & Nicobar
Andhra Pradesh
14
15
16
17
Rajasthan
Haryana
Puniab
Uaar Pradesh
19
20
Delhi
Total
1
1
1
5143
196
884
9
100
20
12
6
2
1
1
265
1
1
2
667 1
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.
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
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
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
'I
Smith. H, Report of the Unemplopent Enquiry Cornminet, Government of Travancore, 1948, p.12.
hkl, S.J. Report of coconut and coconut products in India, Government of India Publication 1944.P.40.
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:
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.
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
I'
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^."'^
l6
l7
"
l9
Smith. H, Rspon of the Unemployment Enquiry Committee, Government of Travancore, 1948, p.10.
Report of the Boud of conciliation for aade Disputes in the mat and matting Industry, 1939.
B I L I U~ ~ i t h wCior Industry in India, Coir Board. Cochin, p. 10.
Vollurl Brothers Product Report. 1948.p.3.
67
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 puttingout industrialists to start with.
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)
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.
Table 2.9
District wise details of area and production of coconuts in Kerala during 1994-95
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.
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
1997-98is 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. It 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
"
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.
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.
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.
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.