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Coir Industry

Coir Industry and ExportS

Coir is one of the oldest industries in India. It contributes significantly to the economy of the country’s major coconut producing states, i.e. Maharashtra, Karnataka, Andhra Pradesh, Kerala, Tamil Nadu, Goa, Assam, Orissa, Andaman & Nicobar, Pondicherry, Lakshadweep, etc. India, the major global coconut producer, accounts for more than two third of the world’s coir and coir products production. The country, along with Sri Lanka, accounts for about 90% of the total global coir fibre production. India produces about 280,000 metric tonne (MT) of coir fibre annually.
The coir industry employs about 5.5 lakh (0.55 million) people in the country. Kerala, accounting for about 61% of India’s coconut production, is also the major coir and coir products producing state. The industry is a good source of employment in the rural economy of the country, especially for the women population.
India produces coir fibre, yarn, mats, mattings, rugs, non-woven products, geotextiles, piths and other coir products. The coir pith, fibre and mats account for the majority of the coir exports out of India in terms of quantity with a share of 56.38%, 32.35% and 7.52% in 2021-22, respectively. In terms of the exported value, the percentage share of coir pith, tufted mats and fibre was 52.05%, 23.07% and 14.67%, respectively, during 2021-22.
The exports of coir and coir products stood at US$ 526.31 million in 2021-22. During the same period, the export quantity was 1.23 million metric tonne (MT), an increase of 6.15% YoY.
India exports coir pith, coir fibre, tufted mats, handloom mats, powerloom mats, coir yarn, coir geotextiles, handloom matting, powerloom matting, rubberized coir, rugs, etc. Coir pith is the largest exported coir product from India in 2021-22 with exports at US$ 274.97 million.
During March 2022, India’s coir and coir products exports stood at US$ 56.21 million. During April-October 2021, India’s coir and coir products exports were Rs. 2,589 crore (US$ 327 million). This was a 30% increase from the same period in the previous year. The quantity of exports during April-October 2021 was 0.73 million MT, an increase of 13.5% from the same period in the previous year. Over the period of 10 years (between 2011-12 to 2020-21), the exports of total coir and coir products from India has seen a CAGR of 15%.
India exports coir and coir products to more than 100 countries around the globe. During 2021-22, about 106 countries exported coir products from India. Among these, USA, China, Netherlands, South Korea, the UK, Spain, Australia, Italy, Germany, Canada, Belgium, France and Israel are some of the top importers. USA is the largest importer of coir and coir products from India, accounting for 16.9% of the total quantity and 29.79% of the total value exported from India in 2021-22. China being the second largest importer, accounted for 19.82% of the value and 37.6% of the quantity during the same period.
For the coir pith products, the biggest importers during 2020-21 were USA, Netherland, South Korea, China and Spain (out of a total 94 countries), accounting for 66% of the total exports from India.
India exported coir tufted mats to about 77 countries in 2020-21 and out of these USA, the UK, Germany, Italy and Netherlands accounted for 80% of the export quantity. With 60% of the imports in terms of value and quantity, USA was India's largest top export destination during 2020-21.
China is the largest importer of coir fibre from India, contributing to 96% of the total quantity and 95% of the total value exported out of the country in 2020-21.
For developing the coir industry in India, the Coir Board has launched schemes such as the Coir Vikas Yojana (Coir Development Scheme), Coir Industry Technology Upgradation Scheme, Skill Upgradation and Mahila Coir Yojana. The Export Market Promotion scheme and Domestic Market Promotion scheme focuses on improving exports and domestic sales of coir and coir products.
a) Coir Industry Technology Upgradation Scheme (CITUS)
The main objective of the CITUS is to assist entrepreneurs in the upgradation and procurement of eligible plants and machinery. This way, the Coir Board aims to improve the productivity and quantity of coir products. Some of the other objectives of this scheme are to establish state-of-the-art processing units, enhance the utilization of raw materials, create employment opportunities and attract newer entrepreneurs in the coir industry.
b) A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship (ASPIRE)
The ASPIRE scheme aims to establish a network of technology centres and startup incubation centres in the rural parts of India. For the development and promotion of coir industry, the Ministry of MSME and the Coir Board established the Livelihood Business Incubation (LBI) models for the coir industry.
c) Scheme of Fund for Rejuvenation of Traditional Industries (SFURTI)
Launched in 2005 by the Ministry of MSME, the SFURTI scheme aims to make the traditional industries in India more competitive, market-driven, productive, profitable and employment generation capable, especially in the rural parts of India.
Coir Board of India
The Coir Board of India was established in 1953 for the promotion and development of the coir industry. The main functions of the board are to promote development of the coir industry, promote of export of coir yarn and products, undertake and encourage scientific, technological and economic research, collect and maintain statistics, improve the marketing of related products and advise the Government of India in growth related matters.

Source: India Brand Equity Foundation

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