The Indian coir industry is an important cottage industry contributing significantly to the economy of the major coconut-growing States and Union Territories such as Kerala, Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra, Goa, Orissa, Assam, Andaman & Nicobar, Lakshadweep and Puducherry.

About 5.5 lakh get employment, mostly part time, from this industry. Exports from the coir industry are around Rs 70 crore. Coconut husk is the basic raw material for coir products. At least 50 per cent of the available coir husk is used to produce coir products. The rest is used as fuel in rural areas. Hence, there is scope for growth of coir industry.

Various development programmes undertaken so far by the Union Government has aimed at revitalisation of coir cooperatives, improvement in quality and products diversification. Efforts have also been made to widen export markets for coir and coir products. Judged from the increase in production and employment, the progress has been rather slow and exports in physical terms have remained mere or lets static.

Since 2001, rising Chinese demand for coir, an expanding market for coir-based erosion control products, and the spread of coir pith as a peat moss substitute in horticulture resulted in higher production and prices.

To India's advantage, it exports largely value-added products – yarn, mats, and rugs. Global trade volume for coir fibre, value-added products – yarn, mats, rugs – and coir pith is now valued at $140 million annually with India for about $70 million.

The challenge now for industry is to sustain/expand markets for this versatile renewable resource, while maintaining its role as employer for the rural poor. This may require producers to innovate production, improve product consistency, and in particular develop novel applications – jointly with their customers in importing countries.

Source: Coir Board

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