COIR INDUSTRY IN INDIA WITH SPECIALREFERENCE TO KARNATAKA2.1 INTRODUCTION Coir industry is one of the most traditional cottage and agro based industry with high employment potential and export prospects. Historically, the coir industry started and flourished in Kerala which has a long coast line, lakes, lagoons and backwaters providing natural conditions required for retting. Development of coir industry depends on a largest extent of the availability of basic raw materials, which is derived from the coconut. Therefore, coconut is a great relevance and important in the coir sector. Coconut husk is known as coir or coco-fibre. Coconut grows ideally in humid tropics regions in India. The west coast belt regions accounts for more than 80 percent of the area under this crop. However, with the expansion of coconut cultivation, coir industry has also picked up in Tamil Nadu, Kamataka, Andhra Pradesh, Orissa, West Bengal, Assam, Tripura Pondicherry and Union Territories of Lakshadweep and Andaman and Nicobar Islands. In this chapter focused on the growth of coir in India with special reference to Kamataka. It deals with the origin and development of coir industry in India and Kamataka, role of coir industry in Indian economy in terms of production, employment potential, consumption and exports of coir products. 2.2 ORIGIN OF COIR AND COIR INDUSTRY Coir is the native name of the fibre extracted from coconut husk, the fibrous mass surrounding coconut, the fruit ofthe perennial plant cultivated extensively in the tropics'. There is every reason to believe that the word ‘Coir’ has its origin from the Malayalam word *Kayar' which means a cord, string or yam spun out of fibre extracted from the husk of the coconut.’ Coco's fibre or coir extracted from the husk of the coconut is classed among the industrial hard fibres which enter the world market in the form of fibre, spun yam or floor coverings. Kerala, the land of coconut palm, got its name by this fact from the Sanskrit word “Kera’ the name for coconut tree. The word coir was supplied to the European vocabulary by Marco Polo the Italian traveler.’ ‘The Coir Industry has a very long history in India. Rope and Cordage made out of coconut fibre have been in use from ancient times. Indian navigators, who sailed the seas to Malaya, Java, China and to the Gulf of Arabia centuries ago, had uMbeen using coir as their ships cables.‘ Arab writers of the eleventh century referred to the extensive use of coir as ship cable, fenders, riggings.’ The remarkable international correspondert of ancient times, Marco Polo commented on the use of which coir was put in ship building in the Persian Gulf, He later saw the land where ‘Arabs bought their coir and recorded how it was made out of the fibre extracted from the coconut husk." The Arabs have been trading with Malabar Coast of Kerala in India even in 13% century and there is evidence that they were familiar with the use of coir in ship building and also as cord and tug rope. There are legends establishing the trade of coir from Kerala by the Europeans. The Portuguese merchants, who arrived in Kerala, purchased coir and exported it to their own country. The increased demand for coir in the European market forced the merchants to make large scale purchase in the demand for coir in Europe compelled the Dutch merchants also to concentrate in this business. In the 14 century, both the Portuguese and Dutch merchants had purchased and exported about 1400 tones coir yam from Kerala. Following the Portuguese and Dutch, the English merchants also entered the market. Facts record that there was Coir Industry in U.K before the 2™ half of the 19” century. In 1840, Captain Wideley, in co-operation with Captain Logan and Mr. ‘Thomas founded the well-known carpet firms of Treloar and Sons in Ludgate Hill, England for the manufacture of coir in to various fabries suitable for floor coverings,” this was the first coir carpet factory in the world. The initial capital investment was 135 pound with only three workers, he himself and his two children. The capital investment increased over a period of a decades to 2 lakh pound and the number of workers increased to 104. The coir yam required for his factory was purchased from Kerala and Sri Lanka, Treloar's business success prompted Captain ‘Wint to start another factory in England to produce Coir Mats. However the product did not have any market and thus the factory was forced to be closed down.’ Hand spinning of coir yar was prevalent in India as a cottage industry even before the 11 century. Production of coir yam on the spindles of ratt was a later development possibly in the 15" century. The coir manufacturing industry producing coir mats and matting .and other floor coverings was started in India on a factory basis, over a hundred years ago when the first factory was set up in Alleppey in 1859 by the Ime-Mr. James Darragh, an adventurous Irish bom American national 32enterprising India followed the blazed by this foreigner,” ever since this humble beginning, coir products have been improving in quality, quantity and variety. Now this industry in flourishing’and known everywhere in the world. Emergence of Kamataka as one of the major coir producing states can be traced to 1960's when “The Karnataka State Central Coir Co-operative Development Production and Marketing Federation Limited’, Bangalore, was started during the year 1960-61"" to assist all the coir producing units in the marketing of coir fibre and other products. But the real push was given to the industry by the Government in year 1969, when it constituted a Coir Advisory Board to advise the Government on matters of development pattem of the industry. Later on, both Central and State Governments started giving microscopic attention on the development of coir industry particularly during and after the Third Five Year plan. In order to enable rapid growth, particularly in the organised sector, Government extended both technical and financial assistance to individuals who came forward to establish defibering units. For historical reasons, cultivation of coconut and the Coir Industry have taken deep roots in Kerala state. The rapid expansion of coconut cultivation in non- traditional areas increased the production of coconut and the industry has also developed in a significant way in the state of Tamil Nadu, Karnataka, Andhra Pradesh, Orissa, West Bengal, Gujarat, Goa, Assam, Lakshadweep, Andaman and Nicobar Island, Pondicherry and Tripura. 2.3. ROLE OF COIR INDUSTRY IN THE ECONOMY OF INDIA Agriculture is the dominant sector in the Indian Economy. It contributes 14.6 per cent of Gross National Product (GNP) during the year 2010-11, provides about 58.1 per cent of country's employment and constitutes the basis for almost $ 247.4 billion of its export earings. Most of the cultivable land in India is devoted to food grains, pulses, oilseeds etc., but industrial crops such as Cotton, Jute, Tobacco, Scriculture and Plantation crops such as Tes, Coffee, Rubber, Cashew nut and Coconuts and wide range of spices and horticultural crops are also grown in some states and make sizeable contribution to the Indian Economy. The development plans of the government of India have emphasized agriculture and agro based industries. 3The main focus of the draft Eleventh Five year plan is on alleviation of rural unemployment and poverty and therefore, includes investment on labour intensive sub sector such as coconut, dairy, poultry and sericulture etc. Coir Industry is an important labour intensive agro-based cottage industry providing gainful occupation to unemployed in the rural and semi-urban areas while the activities relating to coconut plantation and fibre extraction are basically agriculture oriented. The weaving and production of hand spun coir mat and matings are cottage industry practiced in rural and semi-urban areas which employs 6.50,000 persons in the rural areas of the country, either on full time or on part time basis. Nearly three million persons, employed in this area from vulnerable section of the society such as SC/ST and tribal people. Thus, coconut plantation is being looked upon as an effective tool for generation of gainful employed among the weaker section of the society. 2.3.1 Coir Industry and Coconut Production: The scope for the future expansion of the Coir Industry is closely related to the availability of coconut husks. This is because the coir is made from the fibre extracted from coconut husk. The development of coir industry was, therefore, mainly associated with the production of coconut. The Coconut palm, more appropriately called “Kalpavriksha” has been in cultivation in India from time immemorial. The mention of the palm indicates that coconut was found in India only during the Post Vedic Period. But, from where exactly it was bought in to India was not known.'! Some people says that the coconut drifted in the sea from Polynesia and found new homes in many parts of the world. According to the early Greek Chronicles it was Megasthenes, Ambassador of Seluces Nicator, who told the Indian King Chandragupta about the palms be found in ceylone in 300 B.C? Three theories are prevalent about the origin of the coconut. The first one is that, the palm is believed to have originated in northern end of the Andes in South America. The second theory is that it must have originated on the coasts of Central America from where the nuts might have been carried by the equatorial ocean countries to the Pacific Island. The third theory which is widely accepted. Assign the origin of the coconut to South Asia or Malaysia from where it might have accidently reached America." Fhe coconut cultivation was started for the first time in Kerala by the “4“Shanar* community which is supposed to be one of the earliest tribes in Kerala. The earliest information regarding coconut cultivation can be collected from the description of an ancient “Arabian traveler Ibanu Adbeet who visited the ancient Kerala." , Among the various agro and cottage based commodities produced in India, ‘coconut and coir are prominent. A Bird's cye view of various tapped uses of coconut is shown in the chart no.1. Among the various products produced from coconut the husk is the most useful product. Our study is mainly on Coir fibre. The detailed study on shall and kernel is not made as it warrants a separate study by itself. Production of coir products has been showing increasing tend in recent past, extraction of fibre either through natural ratting process!’ or mechanical extraction'® is the first step in the production of coir products. The chart no. 2 clearly shows the various stages of production of coir products. 2.3.2 World Production of Coconut More than 97 countries spread over the tropical belt in the regions of Asia, East Africa and America grows coconuts and those countries are also potential producers. Philippines and Indonesia were the leading producers which along contributed about 56 percent of the world production,’ followed by India and Brazil. Moreover, the ten major coconut producing countries viz. Indonesia, Philippines, India, Brazil, Sri Lanka, Thailand, Viet Nam, Malaysia, Papua New Guinea and Tanzania. India ranks third among the leading coconut growing of the world, eccounting for more than 19.44 percent of the total world production of nuts, as can be seen in the following table 2.01. 35Cart No Mul ues of Coconut Sourve: Coir Board Coir News (2010), Vol.39,Book No.1, P. 16, Coir Howse, Koh,Chart No.2 Production Process Flow Chart Coconut +f Dehusk Green Husk 1 Natural Fring I Crushing Manual Extraction of Fibre Needled £ Soaking fe} Felt Spinning of Yam oo Decorticaion | [ Defibering —T combing Rope || Mar Rope Mattings i Fibre bet pith Geo-textile Yam || Curled Coir Rubberised |] Needled ‘Source: Ibid, P. 8. Products Felt 7Table 2.01 and figure 1 and 2 shows that the total production of coconuts in the world accounted 48,913,830 metric tonnes from countries like Indonesia, India, Philippines. Thailand, Brazil and Sri Lanka etc. Indonesia and Philippines first and second rank in terms of nuts production during the year 2011 and it is evident that the share of India accounts one third of the world output. Further, the diagram indicates that 82.42 percent of total production of the world is from three countries i.e., Indonesia, India and Philippines. It is also noticed that the contribution from Sri Lanka, Brazil, Thailand and other countries is negligible. Philippines ranked first in terms of area under coconut cultivation with 36.07 percent to the global acreage, Indonesia second rank and India third rank in terms of area under coconut cultivation with 1,984 thousand hectares, 20.31 percent to the world acreage. But Brazil and India first and second position in terms of productivity (8303 kg/he). Table: 2.01 Country-Wise Area, Production and Productivity of Coconut in 2010-11 ‘Area | Perce ee Percen | Productivi Hectares | ntage =) tage | ty (kg/ha) 2,660,000 | 27.22] 16.300,000| 33.33] 6,123 Philippines | 3.523.927 | 3607| 14,500,000| 29.65| 4.408 India 1,984,600 2031] 9,500,000] 19.44] 8,303 Brazil 2,200] 0.02] 3.033.830] 6.2] 10,813 Sri Lanka a47,000| 458] 1,950.00| 398] 4302] Thailand 337,000| 345] _1,500,000| 3.06[ 4.302 Vetnam 132,800[ 136] 940000| 132| 7.007 Malaysia 172,000] 1.78| 710.000] 1.92 Papua New 200,000| 2.04] 650,000 0.34] 3,250 Guinea Tanzenia 310,000| 3.17] 370,000} 0.76 1,193 WORLD | 9,769,527] 100] 48,913,830] 100 : Source: FAO Statistic. 38Production inametric tonnes Figure: 1 Country wise Coconut Cultivation Area in 2010-11 indonesia se Phiippines iooa een asnianta sm thaland se Papuanew Guinea Veins Malays sm Tantena Figure : 2 Country wise Coconut Production in 2010-11 18,000,000 16,000,000 14,000,000 : 12,000,000 10.000 000 - £8,000 000 6.000.000, 4,000,000 2,000,000 ° LO OCLL TEL Coumertes2.3.3 Production of Coconut in India ‘The Coconut is not only significant in socio-cultural needs of our society, but also has gained considerable importance in the national economy as a potential source of employment and income generation among the plantation crops. India is one of the leading coconut producers in the world, producing 13 billion nuts per annum, India “accounts for almost 19.44 percent of the world’s total coconut production, the area under the plantation area is distributed in sums up to around 1984 thousand hectares in the country. Coconut cultivation area is distributed in 18 states and three union territories under different agro-climatic conditions. It contributed over Rs. 7000 crores annually to the national GDP and earns about Rs. 48,079.93 lakhs of foreign exchange by exports of coconut products. Table: 2.02 Trends in the Production, Area and Productivity of ‘Source: Annual Reports, Coir Board, (2001-2002 to 2010-11), Cochin. Coconuts in India since 2001-02 Year Area (000) Production Productivity Trend Hectares | (million nuts) | (Nuts/ha Value 2000-2001 1823.91 12678.4 6951 9300 2001-2002 1932.3 mt 6709 9740 2002-2003 1921.8 12535.0 6523| 10180 2003-2004 1933.7 12178.2 6298 10620 2004-2005 1935.0 2005-2006 1946.8 vai] 7608] 11505 2006-2007 1936.8 158404 8179] 11945 2007-2008 1903.19] 14743.56 7747| 12385 2008-2009 1894.57| _15729.75 | 8303] 12595 2009-2010 1984.60[ _ 16547.15| 8403| 12650 LGR 0.3689 3.7335 | : 5 CAGR% 0.3546 3.3825 : : ‘T value c369036 ‘Trends in the Production, Area and Productivity of Coconut in India since 2001-02, ul) LIA IE veut ‘Table 2.02 and figure 3 shows thatthe trends in the Production, Area and Productivity of Coconut in India. It is clear thatthe cultivation is under cocamut increased over the years. tn 2001-2002 it was 123.90 thousand hectares. which increased to 194.60 thousand hectares in 2010-11. The production of coconut increased from 12,6784 million nuts to 16,547.18 mullion nus, The productivity of coconut showed fluctuating wend. but sicadily increased from 6951 ute per hectares in 2001-02 10 8403 nuts per hectares i 2010-11. The table abo shows that the tend in the arca under production of coxonul has been increaning. But the productivity has fuctuating trend duc 19 water scarcity and some other problems prevailing in the Farm sector. It was predicted that the trend value would be 15.472 Aonnes during 2014-2015, I is also shows thatthe compound annual growth rete for coconut production 3.3425 percent increase for 10 years However iis quite interesting to absence from comparison of Co-efTiient of Variance reveals that among. coconut cultivation area is relatively more consistent (CV. 2.0746 percent) than the others coconut production is lews consistent (CV. 10.8966 percents, The table alo shows the 1° values in all (wo dimensions are asignificant at § percent level of significance. The linear growth rate values are also presented in the table. 2.3.4 Major Coconut Producing States in India The distribution of area under cocunut cultivation shows that the major portion of coconut production in the country rests with the Western plains and Ghats regions comprising the states of Kerala, Karnataka and Maharashtra followed by Easter coast plain and hilly regions comprising Andhra Pradesh, Orissa, Tamil Nadu and Pondicherry. Andaman and Nicobar, Lakshadweep Island and states of Gujarat are the other traditional coconut growing aress. In North Easter belts, state like Mizoram, Manipur, Nagaland and Arunachal Pradesh are also experimenting coconut cultivation successfully. Statewise coconut cultivation area, production and productivity during 2010-11 are depicted in the table 2.03. Table: 2.03 Area, Production and Productivity of Coconut in India during 2010-11 States/union | Area(ooo) | Percen | Production | Percent | Productivity Temtories | hectares | -tage | (million nuts) | _~ (Nuts/ha ‘Andhra Pradesh | 104.00 4.95 970.00| 6.87 9327 Assam 13.80] 0.84 wa7i0] 079] 7824 Goa 25.61 | 1.05 128.18[ 069 5005 Gujarat 15.98] 0.95 15742092 9851 Kamataka 4i9.00| 2096| 217600] 14] «5193 Kerala 787.77| 41.96| $802.00] 37 7365 Maharashtra 2100[ 1.58 17510[ 12 2338 Nagaland om] 0.02] 03s] 029 598 Orissa s100[ 3 275.80 | 1.96 $408 “Tamil Nadu 389.60] 215] $365.00] 342 1371 Tripura [__ S80] 01 40, on 1966 West Bengal 2860[ 203[ 35550] 0.86 12430 A&N Islands 21.69| 1.01 82.00] 058 3781 Lakshadweep 2.70 | 0.04 s3.00| 029] 19630 Pondicherry 210] 0.01 30.70| 0.25 14619 All india [1894.57 | 100.00 _15729.75 | 100.00 8303 ‘Source: Directorate of Economics and Statistics, Ministry of Agriculture, Government of India, P. 451. a‘The state wise arta, production and productivity of coconut in India during 2010-11 are presented in the table 2.0% and figure 4, which shows that Kerala contribution to total area under coconut was 747.77 thousand hectares (41.96 percent), Figure: 4 Area, Production of Coconut in lndia during the year 2010-11 —Are2 (000) estares Prosuevonimiion ats) late pOPPPGrg followed by Karnataka 419 thousand hectares (20.96 pereenth. Tamil Nadu 399.6 thousand hectares (21.5 percent) and Andhra Pradesh 104 thousand hectares (4.98 percent), which logether accounted for 88.92 percent of the total atea in the county. Kerala occupied the first postion with coconut production 6,084 million nuts Tamil Nadu ranked second followed by Karnataka and Andhra Pradesh. Regatding coconut productivity Tamil Nadu, West Bengal and Andhra Pradesh leading slates, m union lerttory Lakshdweep and Pondicherry leading in terms of productivity Tamil Nadu 13,771 nuts per hectares, West Bengal 12430 nuts, per hectares and Andhra Pradesh, 9,327 nuts per hectares. 235 Coconut Production in Karnataka The Coir Indusry is naturally very dependent material for this industry, Karnataka accounts fr 20,96 percent of arca under coconut he coconut husk isthe raw cultivation and 14 per cent of foal production of coconut in the country. Coconut is the second largest and important horticultural crop of the Karnataka sate, occupying 31 pet cent of the total area under horticultural crop, Coconut is grown in all the districts of the state. The Yotal area under coconut in the slate is around 3.33 lakh hectares and the annual production of coconut is 1754 million nuts. The productivity . aof coconut’ in the state is considered as lowest when compared to other neighboring, states, Fluctuation in the production of coconut has 3 major impact on this industry ‘The tends inthe production of coconut aca predation and productivity since 2000. 1 is shown in the table 2.04 Table: 204 rea, Production and Productivity of Coconut in Karnataka sin’ — ‘Ares | Production | Productivity | +000" hs | Million Nuts | Nutshhe 2001-02 338 17542 (3255 | 2002-03 3698 1503.6] 4066 2003-04 1303.6 | 4066 2004-05 1529.1 [4067 2005-06 a6 T3139 2006.07 nove] 3139 | 2007-08 we2s.o] 4052 2008.09 16350] 4037 2009-10 21760] __ 519 2010-11 zw] LGR iy CAGR_ as T value 7 cv 9.78 zs6) ‘Source: Directorate of Economics and Statistics, Ministry of Agriculture, Govt, of tia Figure 5 Area, Production and Productivity of Coconut in Karnataka since 2001-02 2500 2000 “ull = eeseeseses Peres eee Yes Areain thousands nutty Production in i halion nits 4The Coconut production, area under cultivation and productivity in Kamataka are shown in table 2.04 and figure 5. It is clear that the cultivation is under coconut increased over the years. In 2001-02 it was 333.8 thousand hectares, which increased to 479 thousand hectares in 2010-11. The production of coconut increased from 1754.2 million nuts to 2182.65 million nuts. The productivity of coconut showed a fluctuating trend, but steadily increased from 5255 nuts per hectares in 2001-02 to 3139 nuts per hectares in 2010-11. The table also shows that the trend in the area under production of coconut has been increasing. But the productivity has fluctuating trend due to water scarcity and some other problems prevailing in the farm sector. It's also shows that the compound annual growth rate for two dimensions. For the period 2000-01 to 2009-10 Coconut production area grew at rate of 4.09 percent, which is relative higher than the growth rate of 2.45 percent for coconut production, ‘t’ values in all two dimension are significant at 5 percent level of significance. The linear growth rates values are also presented in the table. It may be concluded that a comparison of Co-efficient of Variance reveals that among coconut cultivation area is relatively more consistent (C.V.9.785 percent) than the others coconut production is less consistent (C.V. 20.56 percent). ‘The table 2.05 shows that the interior Kamataka yield maximum number of coconuts when compared to that of coastal districts. Tumkur district which accounts for 31.47 percent production is at the top among the interior Kamataka Districts. Other dominant districts which produce nuts and fibre are Hassan, Mandya, Chitradurga, Chickmagalore, Bangalore Rural, Ramanagara and Mysore. In production of fibre also Tumkur is the chief producer of fibre in the state with 30,046.73 tones out of 95,492.40 tonnes during the year 2010-11. 2.3.6 World Coir Production Coir Industry is mostly concentrated in the coconut producing countries like India, Sri Lanka, Indonesia, Malaysia, Philippines, and Thailand etc. Although Philippines and Indonesia together account nearly 45 percent of the World production of coir, India and Sri Lanka account to nearly 90 percent of the World coir production." Coir Industry has developed on a large scale only in India and Sri Lanka, These countries are largest producers and exporters of coir. Owing to 45fundamental differences in economic conditions governing coconut cultivation and coir extraction and those necessary for coir production many of the large covonut producing countries viz., Philippines, Indonesia, Malaysia and Thailand have only relatively small coir output. These four countries taken together produce in total only aan estimated 18,000 tonnes of the coir annually that is less than 5 percent of the estimated world production of about 3,00,000 tonnes of coir.'® Table: 2.05 District wise Distribution of Area under Cultivation, Production of Coconuts and Production of Coir Fibre during 2010-11 Si ‘Area | Production in | Estimated Production No District (in 000 ha) | (1000 nuts) _| of Coir fibre (in tons) 1 [Tumkur 4,569 115,190 30,046.73 2_| Hassan 1,553 $6,282 17,386.96 3_| Chitradurga 4,082 50718 16,024.33 4 | Dakshina Kannada 85,254 21,547 6,778.45 | 3_| Mandya 70,584 12,487 5,129.39 6 _| Chikamagalore 62,006 25,378 4,4690.42 7 _[ Bangalore (Rural) 61,006 10,974 4,381.09 8__|[ Mysore 47,696 4,058.00 9 | Shimoga 33.019 2,241.33, 10_[ Uttara Kannada 25,638 1,846.66 1] Kolar. 9,182 685.86 12_| Bangalore (Urban) 7,485 $23.04 13_| Bellary 7,747 492.29 | 14 | Dharwad 5,948 346.36 15_| Gulbarga 4,859 293.51 16 [Kodagu 3,605 252.38 17_| Bijapura 2,148 150.36 18 _| Raichur 1,938 93.03 19 | Belgaum 1,006 70.56 20_| Bidar 4 1.68 21_[Davanagere 14,587 2,541.00 22_| Haver 2025 150.65 23 | Koppal 478 85.00] 24 | Bagalkote 425 $7.00 25_| Ramanagar 1254 96.02 26_| Chikkaballapur 1125 248.36 27 [Chamargjanager | _ 8,579 698.25 28_| Udupi 9857 458.25 29 | Gadag 1254 358.65 30_| Yadagiri 258 85.69 Total 4,79,161 140271.27, ‘Note: 1. Production of fibre has been taken at 70 Kg per 1000 husks. 2. The relevant figure has been taken for the year 2011. Source: |. Directorate of Economics and Statistics, Bangalore. 2. Personal: Enquiry Notes. J2.3.7 Production of Coir: in India India is the largest coir producer in the world accounting for more than 80 percent of the total world production of coir fibre. Coir Industry in India consists of two distinct segments namely, White fibre and Brown fibre. Almost the entire production of white fibre in the country gets converted to coir yam. About one-fifth of total production of coir yam goes for the manufacture of value added products, namely door mats, matting’s etc. While 60 percent of the production of finished products is exported, domestic market consumes the balance. Out of the total production of coir yan, about 20 percent gets converted to rope and cordages mainly for domestic consumption. The balance yarn retained as much as is shared between the export and the domestic market. The Brown fibre produced in the country is consumed for rope making. curling, for rubberisation, stuffing, upholstery etc., besides a part of production being spun into coir yarn for manufacture of finished products of coir on a limited scale and that too recently. 7° Kerala is the home of the Indian coir industry, the other main coir producing centre are Tamil Nadu, Karnataka and Andhra Pradesh. Besides these states small quantities of coir are produced in Orissa, West Bengal, Gujarat, Goa, Assam, Lakshadweep, Andaman, Nicobar Island, Pondicherry and Tripura. Production of white fibre is mainly concentrated in Kerala with a share of 90 percent in the total output. Tamil Nadu is the second largest producer of coir in India contributing to 54 percent of total production in the Brown fibre. Kamataka is another important Producer of coir in India where production is mainly confined to bristle and mattress fibre by mechanized process. In Tamil Nadu and Kamataka Production is mainly of ‘brown fibre. using mechnaised system of extraction. Andhra Pradesh is also major producer of coir in India. Coir Industry in Andhra Pradesh is concentrated in the East Godavari, West Godavari, Srikakulam and Visakhapatnam districts. There are 307 coir units working in the state. The total production of white fibre is estimated 15000 metric tons in 2010-117", Production of Coir Products i.e., rope, mats, mattings, curled coir, rubberized and geo-textiles requires coir fibre. The coir fibre is extracted through transformation of husk into-fibre normally performed either by natural retting or by mechanical devises. Our survey revealed that all states are not giving importance for this labour "7intensive export oriented. and profitable industry i.e.. “Coir Industry". Attempt has bbeen made to project the actual utilization of husk for industrial purpose from the total quantity available in various states shown in the table 2.06. Table No. 2.06 ‘Statewide Production of Coir Fibre during 2010-11 Production | Husk] Production Statestunion | A000) | (mition | utilisation | of coir fibre Territories . lectares nuts) Percentage | (M. tones) ‘Andhra Pradesh | 104.00| 970.00 31 1,64,400 Karnataka 419.00] 2176.00 27] 99.950 Kerala 787.77 | 5802.00 20 26.900 Orissa 51.00] 275.80 14 16,600 Tamil Nadu 389.60] 5365.00 3 2,860 West Bengal 28.60 | 385.50 1 3,020 [Others 98.99] 687.27 7 3.930 All India 1894.57 15729.75 : 3,17,660 Source: Coconut Development Board. Annual Report 2011, Cochin. p. 18. Table 2.06 shows that the utilization of husk for industrial purpose in various states ranges between 7 and 31 percent. This observation clearly warrants a specific study as to why the utilization of husk is more for other purposes than for industrial purpose, Further, our field survey revealed that major portion of husk particularly in non-traditional acres are being used fuel and other purposes. The Government of India has been giving lot of impetus to coir industry ever since the planning era started, as it comes under both agricultural as well industrial sectors. Of late many entrepreneurs are coming forward to produce value added products of coir. As per the directive issued by the Government of India, all the units shall be registered with the Coir Board and permission obtained to start commercial production. The number of units register with Coir Board for manufacturing various coir products during the year 2010-11. It is evident from the table 2.07 that Kerala is the dominant producer of coir products having lion's share of coir units registered followed by Tamil Nadu and Kamstaka. It is evident from the table 2.08 the Coir Fibre, Yam, Rope, Curled, Coir Rubberised Coir and Coir Products are showing progressive trend. During the period 2001-02 to 2010-11, production of Coir Fibe, Coir Yam, Coir products, Coir rope, “aCurled coir, Rubberised. coir's compound annual growth rate increases. This ble also shows the linear growth rate of all Coir Products, 1’ value of all dimensions significant of 5 percent level. The Co-efficient Variance is also presented in the table. A comparison of Coir products production on the basis of Co-efficient of Variance reveals that those with Coir rope is more variance than others with respect of production (C.V.9.68 percent). While those of the Coir products productions are less variance. (C.V. 36.83 percent). .Table 2.07 Co Prceng Units Reiter with Cor Board — Spin |r a) Pah | Curd $i . | Riba | No sate Fibre exraction | Ropemaking | manafactuing cr wit preg Coir | Others } Total Unt vit unit nit nit 1 [Keni 4 w a mw fos TTT wy (2 [Tat 1 wo 0 wo [ow Tw Tr Don (0 [Kamala W i 18 D - [ali % 14 | dia Pres wW mm § $ | T[ yo 05 [ora Fl 3 U6 3 : sf [a (6 [edhe 4 % i : ~-[-f]- [on 01 [Wes 5 4 i ri: [ayy n 1 9 4 : : ni % (9 [Go Hl : 3 | + : ites 10 T Asan y 3 | 2 : ~ fd wt : 2 : : : oem 12] Anda & Nib t l 2 | | Matar | io i ee) i 15 [Rajah : I 4 -[ 4 16 [Ute Pret | 4 6 [4 1 [Md Pde | >]. 1-1 t 4 18 Debi a H oT [19 Pai : | H tis 20 {angus : _ 2 1 21 [Hayama : Per a7. ~[- [2 Teal m3 ne | us o | wo [ [is Neth ove ab Sals sparing iy nd Roehl uns ave ot en coed fr, hey noid Str of such ute apron 300000Production of Coir Products over the recent ten years is shown in the table 2.08. Table: 2.08 Productions of Coir and Coir Products since 2001-02 . (Quantity in metric tonnes) Coir Coir Coir Coir Curled | Rubberised Fibre Yam | Products | Rope | Coir Coir 2001-02 | 3,69,400| 2,36,900[ _72,575| $2,700] 31,800 $1,800 2002-03 | 3,53,700| 2,26.800[ 75,750] 50,000 28.000 $0,250 2003-04 | 3,64,000| 2.32500] 77.900| 50.000 29,500] $1,000 2004-05 | 3.85,000| 2,45.500[ 98,000] 50.000/ 36,500| 60,000 2005-06 | 4,10,000] 2,70,000| 1,20,000| $0,000 38000 | 62,000 2006-07 | 4,30,000| 2.88,000| 1,70,000| 0,000] —48,000/ 68,000 2007-08 | 4,37,800| 2.90.000[ 1.72,000| 52,000] 49,000 70,000 2008-09 | 491,000] 2,92.900[ 1,73,550] 52.470| 49,540 70,840 2009-10 | 3.91.450[ 2.21900] 1,30,300| 39,400 37,200 53,200 | 2010-11 | 5,25,000] 2.99500] 200,000] 9,500] _ 59,000 80,000 Year _ 4. + LGR 2.900 2.065 17.084 117 6.69 3.62 CAGR 3.98 2.64 11.92 1.36 7 4.95 T value 23.349 26.828 8.605 32.643 12.591 19.035 Cv 13,54 11.78 36.83 9.68 | 35.71 16.61 Source: Annual Reports (2001-02 to 2010-11), Coir Board, Kochi. 2.3.8 Coir Industry in Karnataka Kamataka has-been the second among major coconut growing states in the country for many years. The origin of coir industry in Kamataka, can be traced 10 1960's earlier, the two coastal districts of Dakshan and Uttar Kannada had some white fibre processing activities, because of natural back water retting facilities. Locally available coconut husks were manually processed to make white fibre, yarn and rope for consumption in the surrounding market centres. The coconut husk from leading coconut growing district like Tumkur, Hassan, Mandya, Bangalore, Mysore, Chitraduraga etc., were used as fuel. In fact, there was not market for coconut husks and the known by-products were brooms and kitchen brushes produced on cottage scale. In contrast, the neighboring state of Kerala had a flourishing white fibre coir processing industry. Further it has 4,79,000 hectares of area under coconut cultivation spread over in 30 districts of the state and production of nuts is estimated at 2182.65 million muts during the year 3174 Fibre extraction units are functioning in the state producing 23,523 metric tonnes of fibre. Apart from the fibre extraction units. there are 164 Coir Yam units producing about 4,397 metric tonnes of coir yam mainly operating on traditional ratts. 27 rope making units producing about 850 tonnes of rope for domestic sales. There are 97 mat and matting manufacturing units with the installed capacity of 13,055 metric tonnes per annum. These units produce 2,001 metric tonnes of mat and matting. There are 62 curling coir units with the installed capacity of 12.130 metric tonnes per annum by producing 6,690 tonnes of curled coir and majority of these units are located in Tumkur District. 15 Rubberised coir units, 62 curled coir units were functioning in the state with combined production of 8450.72 tonnes during 2010-11. There are twelve defibring units, four curled coir units and seven auto spinning units of the Kamataka State Coir Development Corporation. Also, the Corporation is having 75 production centers for the production of yam, rope, curled coir, coir matting and foot mats in rural areas and 43 Coir Co-operative societies including two newly registered societies functioning in the state. The industry directly employs about 27400 persons in the state. Due to non-availability of natural retting facilities, as is available in the state of Kerala. Production of white fibre is less in Karnataka except in the coastal areas this information is presented in the table 2.10 Table: 2.09 Production of Coir Products in Karnataka since 2006-07 Fibre Yarn i . "7 Production | Trend | Production | T'°4'9 | Production | Trend in ar | (metric | percentage | (metric (metric | Percent tones) tones) eee tones) we 2006-07 18,140 ~ 3100 | ~ 2850 - 2007-08 | _20,709| + 14.16 seer + 630/378] +1150 2008-09 19355] -533 S74| +7866 | 4896) + 5405 2009-10 | 20354] +5.16 320 -4302[_—_—‘S707| + 2428 2010-11 20854 | +254 3450[ +486] 3900 +520 ‘Source: Department of Industries and Commerce, Coir Wing, Annual Report of 2010-11, Bangalore , pp. 4-6, 52Table: 2.10 Production of Retted Coir Fibre since 2006-07 Actual Production q "i Year | offre | fie erie onmes) | ete fee { Metric tonnes) 2006-07 18,140 198.5 1.09 2007-08 20,708 2382 TAS 2008-09 19,355 22.9 1.26 2009-10 20,354 199.2 0.98 2010-11 _[ 20,854 196.1 0.95 Total = 99.412 1074.9 | 7 LGR 2.796 CAGR% 136[ T Value 1B cv 1142 ‘Source: Annual Report (2010-11), Department of Industries and Commerce, Coir Wing, Bangalore. Table 2.10 shows that the share of White Fibre in the total quantity of fibre produced in the state which was 198.5 tonnes in the year 2006-07 has decreased to 196.1 tonnes during the year 2010-11. ‘The percentage share in the total output of fibre is slowly falling from 1.09 percent to 0.95 percent indicating the downward trend in the production of white fibre compared to brown fibre. Production of Coir fibre compound growth rate (1.56 percent) increases and production of White Fibre compound annual growth rate (-0.14 percent) negative growth rate, 1° value of all dimension significant at 5 percent level but production of White fibre insignificant at 5 percent level. We may analyse the Co-efficient of Variance shows that the among production of coir fibre, production of Fibre is relatively more consistent (C.V.11.42 percent) than others, while production of white fibre is less inconsistent (C.V. 21.79 percent), the table also shows that the linear growth rates. Out study also revealed that there is greater demand for white golden fibre when compared to brown fibre. The unique characteristic of white fibre is that it can be also used for decorative and making artistic mats and mattings. There has been a sea change in consumption of coir products particularly in domestic market. The state of Kamataka stands third in the production of nuts and production of coir products since 2001-02. The state produces brown fibre on a large scale ranks next to 533Tamil Nadu state. Small quantities of white fibre is also produced in the state and the relevant data pertaining to these two are shown in the table 2.11. ‘The table 2.11 shows that there has been continuous increase in Coir Fibre production in the state, where as production of white fibre is almost stagnant. But Brown fibre production which was 17,941.5 million tones during the year 2006-07 has increased to 20,657.9 million tonnes during the year 2010-11. This reveals that, state has mastered the production of brown fibre. Production of white fibre compound annual growth rate (0.14 percent) negative and production of brown fibre compound annual growth rate (1.58 percent) increases. Comparison of coir fibre production on the basis of co-efficient of variance reveals that those with production. of brown fibre more variance then the other coir fibre production (C.V 11.54 percent), while the production of white fibre is less variance (C.V. 21.79 percent) Table: 2.11 Production of White and Brown Fibre in Karnataka since 2006-07 Production of | Production of | yy White fibre’ | Brown fibre” i Year | GinM.tones) | (inM. tonnes | (in millions) 2006-07 198.5 17.9415 18,140 2007-08 238.2 20.4708| 20,709 2008-09 42.9 19.1120 19,355 2009-10 199.2 i 20.354 2010-11 196.1 657: 20,854 CAGR% 0.14 3: poof cv 21.79 1134 _ Note : 1. Produced in Dakshina and Uttar Kannada Districts. 2. Produced in other districts of the state. ‘Source: Department of Industries and Commerce, Coir Wing, Annual Report from 2006-07 to 2010-11, Bangalore.2.4 EMPLOYMENT POTENTIAL Unemployment is a universal problem but in India it has acquired distressingly gigantic proportion. It is @ problem with socio-economic implications, as it is the direct result of the population explosion. Besides, India is a country of small farmers i.e., 63.86 percent” of farmers possess average holding of 2.28 hectares in 625 districts. It is also observed that agricultural labourers in India are employment only for 190 days in a year. In this context, the importance of economic growth through the development of agro-based and cottage industries, can hardly be exaggerated. Of the total 5,75,721 villages, ‘Coconut plantation is practiced in as many as 18 states and three union territories total 39,710 village in the country. Coir extraction and spinning of the same is household activity in the villages, helping the agriculturists to supplement their income. besides alleviating the unemployment and under employment during the off-season Besides, being a cottage industry, it supports quite a number of other ancillary industries. It is unique, because the entire family of a farmer participates in it. One hectare of irrigated coconut garden provides full time employment to one family consisting of 5 persons, as has been illustrated in the table 2.12. Table 2.12 Employment Generation by one hectare Coconut Cultivation Man days Man Years Ploughing 280 12 Planting and watering 20 0.32 Fertilizers Application and Maintenance of Tree 355 1.42 Plucking of Fruits 40 0.16 Storing and Transportation 20 0.08 Removal of Husk 30 0.12 Retting/soaking 40 0.16 Defibering 20 0.08 Cleaning of fibre 30 0.12 Yam Making 125 0.50 Cleaning of Yam 20 0.08 Knitting and weaving 150 0.60 Finishing of Mat and Matting 20 0.08 Packing 40 0.16 1250 | 5.0 Notes; 1) 250 man days= one man years. 2) Preparation and planting of palm is done by hired labourers and maintenance of the palm are looked after by the family members. ‘Source: Field Survey notes. 55Table 2.12 shows that the employment generated by one hectare of coconut Cultivation will result 1,250 man days in a year in various activities incidental to the crop. ‘The Coir Industry provides employment to over 6.$ million” persons directly in the rural and semi-urban areas. Out of which 80 percent belong to economically weaker sections of the society. The coconut cultivation and production of coir products, provides a considerable indirect stimulus to employment. Coconut cultivation, production of coir products and utilization of by products can go on creating more jobs. There will be a further multiplier effect through construction of work sheds, soaking tanks/pits, marketing, transport, research etc. It all the forward and backward linkages are considered the employment potential would bound to be encouraging. The Coir Industry provides employment to over 27400™ persons directly in the rural and semi-urban areas during 2010-11 in Karnataka state. In most of the districts in the state, coconut cultivation is practiced as main occupation in recent times. Thus. it has a greater impact on the social life of the growers. As is known coconut cultivation, production and coir production go hand in hand. The effective working of the coir industry gives fillip for more areas to be brought under coconut cultivation and in tum create immense job opportunities in primary, secondary and territory sectors. Indirect employment is the employment gencrated indirectly. Those persons who are employed for harvesting the tree, plucking and transporting the coconuts, husk to the unit, products to and from the factory come under indirect employment. Labour employed in the Coir Industry in Kamataka during plan period are shown in the table 2.13.i Table: 2.13 Labour Employed in Coir Industry in Karnataka ‘State under Five Year Plan Percentage SI. No. Five Year Plans Number of | increase to persons _| previous plan 1 First Five Year Plan 150 100.00 2 Second Five Year Plan 300 66.70 3 Third Five Year Plan 100 100.00 4 Fourth Five Year Plan 4380 338.00 5__| Fifth Five Year Plan 6000 36.99 6 _| Sixth Five Year Plan 7256 20.93 7 ‘Seventh Five Year Plan 7300 0.60 8 Eight Five Year Plan 7500 2.73 | 9 Ninth Five Year Plan 7950 6.00 10 _| Tenth Five Year Plan 8590 8.05 MW Eleventh Five Year Plan 27400 477 Note: The Figures for 11" five year plan is only estimate. Source: Department of Industries and Commerce, Coir Wing, Annual Report 2010-11, Bangalore. ‘The table 2.13 shows that direct employment in the industry during first five year plan period which was 150 persons rose up to 27400 persons during the end of the 11 plan period.” Rate of growth during the third plan period in the industry is more than 100 percent and even more during the 5" five year plan period. The table 2.14 explains the nature of employment to coir artisans in the state. The table 2.14 shows that the nature of employment to coir artisan in the state out of 15,610 coir households surveyed, nearly 11,989 are getting perennial job which is about 76.8 percent as against 18.31 part-time and 4.89 percent seasonal work in the industry. Mysore Division by and large accounts for the maximum number of households (ie., 5,758) out of 15,610 household artisans. Similarly 4,786 houscholds come under the perennial group in the same division. 37Table 214 Distribution of Artsan Howsholds According to Nature of Operation in Karnatka during 201-11 Nature of operation a ya) 1a 8 nt) 0) Sh) AM - T | as) ] it) Ba Sue | st ost) ag) mw) la Sh Rte i inn wy Drala Bagh LIA PDFurther the riature of the work in the coir industry is suitable for economically disadvantaged groups and even women and child labour. This can be seen from the table 2.15. . The table 2.15 shows that out of the total 46,314 artisan workers employed in the industry in the state, more than 55 percent consists of women and children. Mysore and Belgaum division accounts for more women labours in the state accounting for about 80 percent, Bangalore division employs nearly 80 percent of the child labour employed in the industry. Mysore division accounts for 13,030 artisans out of 46,314 which are about 30 percent of the total artisans engaged in the coir industry. Quality up gradation in brown fibre sector was given priority for improving the quality of the product and increasing the output. Requirement of skilled man power is on the increase with the development of the coir industry in the coconut growing states. Imparting training with a view to developing skilled manpower to meet the requirements of the industry is one of the important functions of the Coir Board also.Table: 215 Distribution of Artisan Households, Artisan Workers According to Sex during 2010-11 Artisan Workers centage of artisan workers Children 1399 3180 i 30.10 | | | 15.610) 20997 aa) 206) 434 100.00 ov 100.00 ‘Source: Report onthe Rural Artisan Survey, 2011, Directorate of Economies and Statistics, Bangalore Vol. 2A, PP.66-68.Training in coir is being imparted in the Artisan Training Centers run by the Department of Industries and Commerce and also in the training centers for Social Welfare Department, Governmient of Kamataka. The table 2.16 shows that the household workers in almost all the divisions are skilled (j.e., 40,139). Out of 45,741 household artisans accounting 88 percent of the total. Contrast to this untrained workers are more than trained artisans accounting for 96 percent of the total artisans and calls for training the required manpower to improve the quality as well as output of coir products. ‘Advance training is also being provided by the National Coir Training and Design Centre and Regional Coir Training and Development Centre run by the Coir Board for which trainees are being deputed from Kamataka. Unemployed rural youth in rural areas could be sponsored for training in coir processing operation. Training offered by the Government centers is stipendiary. élTable 2.16 Division of Skilled Unskiled, Trained and Untrained Artian Workers during 201011 Hd Ai Ves tea | Sid tial a | ‘wee ie 1 Pepe Jism] fossa] a] oar [nan) 9 | 1399 | 400] alah | 3491} 85 | asgee {590} 50s za | sa] [a | as Yaa] 0 ana a | ss [sm an | an Yo! war | [ [sue [us] sms mn] nfo | as [sin | Source: Report onthe Ruel Artisan Survey, 2011, Director of Economic and lates, Banglore, Vl. 24, PP. “Dion i |i Tul2.5 INTERNAL CONSUMPTION OF COIR AND COIR PRODUCTS A strong and growing intemal market is necessary for stimulating further development of the coir industry. Although coir is traditionally a highly export oriented industry, there is a large and growing demand for coir and coir products in the internal market, Thus, India is not.only the largest producer, but also, the main consumer of coir in the world. The Indian market constitutes around 45 percent of the world market for coir and coir products.”* Over 65 percent of the coir produced in India is consumed internally. With the fall in exports since 1970's developing the domestic market was assumed tremendous importance and as such Kamataka Coir Industry become increasingly dependent on the home market. Accordingly the decline in the export was balanced by an increase in the intemal demand for coir. Coir Yam is the main item of coir produced consumed with in the country. Coir rope is the next important item of consumer preference in the internal market. Coir door mats, mattings, both handloom and power loom, rubberized coir products are consumed in large quantity. Large quantity of coir fibre especially brown fibre has been used for manufacture of rubberized coir upholstery, fellings, Janatha ‘Mattress etc. The intemal consumption of coir yarn and coir products was showing an encouraging trends in the recent past and as such intemal consumption of coir was steadily increasing. The trends in the intemal consumption of coir and coir products is given in the table. 2.17. Table 2.17 shows that the comparing the internal consumption of coir and coir products since 2001-02. It is found the coir fibre consumption has increased from 89,200 tonnes in 2001-02 to 5,17,000 tonnes in 2010-11. Consumption of coir yarn has increased from 1,25,300 to 2,62,500 tonnes, Coir Products increased from 26,500 to 47,500 tonnes, coir rope consumption increased from 49,700 to 52,400 tonnes, curled coir increased from 27,500 to 42,300 tonnes and Rubberised coir increased from 49,700 to 70,700 tonnes above said year. The increase is relatively ‘more in the case of all coir and coir products. During the period 2001-02 to 2010-11 production of coir fibe, coir yam, coir products, coir rope, curled coir, and rubberised coir’s compound annuals growth rate increases. It may be noted that comparison of the co-efficient of variance shows that among consumption of coir rope is more consistent (11.64 percent) than the other coir products. While coir fibre consumption 63is relatively less consistent (C.V. 55.84 percent). This table also shows the linear growth rate of all coir products, t” value of all dimensions significant of 5 percent level. : Table: 2.17 Consumption of Coir and Coir Products since 2001-02 Year | Coir Coir Coir Coir | Curled | Rubberised Fibre | yam | Products | Rope | Coir Coir 2001-02 89,200 | 1,25,300 26,500 49,700 | 27,500 49,700 2002-03 89,200 | 1,25,300 26,500 49,700 | 27,500 49,700 2003-04 38.400 | 1,96,959 19,469 49,692 | 29,424 50,538 2004-05 3,65,750 | 2,22,500 22,500 49,500 | 35,700 54,000 2005-06 | 4,05,000| 2,35,000 38,000 49,500 | 37,000 60,000 2006-07 4,18,500 | 2,48,000 45,000 49,000 | 40,000 67,000 2007-08 | 3,30,000} 1,95,000 36,000 36,000 | 31,000 49,500 4 | 2008-09 | 4,72,000| 2,52,500 46,610 51,460} 41 450 | 69,320 2009-10 3,60,000 | 1,95,000 35,000 38,600 | 31,250 52,200 2010-11 5,17,000 | 2,62,500 47,500 52,400 | 42,300 70,700 LGR 106.23[ 11.95 ose] 2018| 13152] 2.811| CAGR% | 21.56 8.56 6.70 0.59 sof 3.9 T value 5.662 13.291 10.626 27.163 | 19.007 8.890 cv 55.84 23.79 29.76 11.64 16.63 15.22 Source: Annual Reports (2001-02 to 2010-11), Coir Board, Kochi. 2.5.1 Development of Domestic Market ‘The Coir Board has been adopting various measures for populating coir goods ‘and expanding the domestic market. Measures in the direction include establishment of showrooms and Sales Depots, participation in fair and exhibitions, implementing rebate scheme, organizing generic publicity through print and electronic media. Quality control and providing market development assistance to state supported organizations for enlarging marketing network and participation in exhibitions within the country. The Coir Board also conducts exhibitions periodically at major coi producing and marketing centres in India. Participation in important exhibitions helped to popularize and promote coir and coir products and thereby boost up the sales of coir products through various showrooms under the Board. This is 2 4continuous programme which comes under the major head "Domestic Market Promotion” under Plan General. During the period under report, the Coir Board participated in 134 exhibitions and an amount of Rs.2, 06, 73,373.00 lakhs has been incurred for participation in exhibitions. Ten Internal Exhibitions were conducted by the Board during the year 2010-11. Among the ten exhibitions conducted by the Coir Board five were in Kamataka. Coir and Coir products are marketed in Indian through private channels, showrooms of the Board and Sales Depots of the apex co-operative societies in Kamataka, Kerala Tamil Nadu and Orissa. A few co-operative societies and rubberized coir manufacturing units have set up their sales outlets. An 31-3-2011 there were 31 showrooms of Coir Board spread all over the India. 2.6.1 EXPORT PERFORMANCE OF COIR INDUSTRY India, one of the top producers and exporters of coir in international market. ‘The Indian coir products are great demand in the intemational market because of their special attributes like fitness, price, craftsmanship, quality, attractiveness and eco- friendly, biodegradable, renewable natural resources, non-pollutant, usage of the product is up to the expected level when compared to plastic and other environment pollutant item. India is leading producer and exporter of coir yarn, coir mats, mattings curled coir, rope, rubberized products, geo-textile, coir pith and rugs to world market. There is no evidence regarding the export of coir in large scale from India during the 18 century. But in the beginning of the 19" century, there was a global increase in the production and export of natural fibre. India accounts for over 50 percent of the world trade in coir. About 25 to 30 percent of product is exported to foreign countries. Therefore any programme aimed at the development of the industry will have to corporate measures for strengthening the base of the export sector also. The export trade is dominated by merchant and manufacture exporters in private sector who control about 98 percent of total export. A few public sector units ‘and cooperatives are also engaged in export trade. There are 348 registered exporters as on 31-3-2011. Globalization of Indian Economy and consequent to Liberalization of trade policies, a number of new exporters are entering the foreign trade. 2.6.2 India’s Export of Coir and Coir Products, Segment wise, in Value ‘The value of export of coir and coir products in various segment since 2001- 02 is presented table 2.18. The overall export value of coir and coir products 65increased from Rs. 31,725.44 lakhs in 2001-02 to Rs. 80,671.24 lakhs in 2010-11. ‘The overall India’s coir export market has increased and its compound annual growth rate valuc is 10.93 percent. The tufted mat was only Rs. 4112.38 lakhs in 2001-02 and it has gradually increased and reached Rs. 23968.41 lakhs in 2010-11 with compound annual growth rate of 21.64 percent. Coir pith export also increased satisfactory with a compound annual growth rate of 34.72 percent. Export of handloom mats, coir rope, geo-textiles, rubberised coir, coir fibre, tufted mat and curled coir shows a positive trend. Export of coir yarn, handloom mattings, coir rugs and carpets and power loom mat shows a declining trend. The table also shows that the t° value significant at 5 percent levels exports of coir and coir products like tufted mat, t° value is insignificant at 5 percent level export of other coir products. The co- efficient of variance is also presented the table comparison of coir products exports on the basis of co-efficient of variance reveals that those with handloom mats are more variance (C.V.13.35 percent) than other with respect of exports. While the curled coir exports are less variance (C.V.138.14 percent). The table also shows the linear growth rates. 2.6.3 India’s Export of Coir and Coir Products, Segment wise, in Volume India segment wise export of coir and coir products in terms of quantity is represented in the table 2.19 indicate that the total export quantity of coir and coir products are in rising trend i.c., the total export was 49,948.16 tonnes in 2001-02 and it was increased to 4168101.1 tonnes in 2010-11, with compound annual growth rate 63.49 percent. Among the items, the coir fibre continues to dominate the export. Its export duting the period registered a rapid growth (CAGR of 172.40 percent) from 10.10 tonnes 2001-02 to 83,393.01 tonnes in 2010-11. Other item like handloom mats, tufted mat, coir pith, handloom matings, geo-textiles, curled coir showed significant growth during the period. On the other hand segment's compound annual growth rate shows a steep decline during the period namely coir yarn (30.45 percent), coir rope (5.40 percent), rubberized coir (1.88 percent), coir rugs and carpets (1.63 percent) and power loom mats (100.00 percent).We may now analyze the co-efficient of variance by means of comparison export of coir products handloom mats export more consistent than other coir products, since 2001-02 (C.V: 14.91 percent), while export of coir yam is relatively less consistent than other (C.V. 176.62 percent). The t’ values are also presented the table, 1” value significant at 5 percent level exports of coir products handloom mats, t” value insignificant at 5 percent level exports of other coir products, The table also shows the linear growth rates. 67Table:-118 Segment wise India's Exports of Coir and Coir Products since 200-02 in Value (Rs, Lakhs) T ne TT 7 | od Coirrgs Yeu | Huon | Toed | CobPih | Coit } Coir a Geo | Chir) Ruberied an Crd | Powerloom} Tot mines | at | Yom | Rope Teles | Fite | Coit Coir uM fa pn ovat | ryomas) ast) ona} 379} S21] ast.) mms} ais] asa 10386) $068) S819) 1S jf + mea) | ATL | SA] 1481 | 294% 0s) IMM] 9HS25| TONS) aONA3] Sat) OS) S88] S500 43981 ja uw SMBT] OMS) OR] OTR) SST DoS | M4127] 949905} LODE | 558816 | HH6ST] 39K] LOR | KS} UST] ood] 190) L690 b+ 1} NgOS96] SAMLeO| Novao0| MAL) SI33H] MOS) 19608) s7tOS} 19038] ed) LAQKIO | Sogsha MoGdT | 213M67 | 1821.02 genni. Oes7 | 29346) | 19822) Lonsad) endo] a8ss] | Lok] Sth 085 | 1991098 6690) 1399] ATH) | LAOS} LMM) A289) 1444] 15206) SLO) S019 = VoL6)| 171688) 1.09106) 139089) LIK} ote} hae] M06) LBL AS == = —\— 1 kil aK a WII] 168M] L258] 2000.7] 9} 1139] 4838) ND Ub] MTS UNO | Nssd | BNRd | aR Tn na ol wal HN) MM] INOS] NDS) ea] 8622] 15682 0} Merl —— +—_—__+_—_—__ + Lok 637) ULI] IAM SIE) 108] S95] TL] age) aass] gad] ae) tS) ttt CAR |S} WM) 3S] SST] 9) 99) | a} a] 09) ——+_+__—_+ Tooke | 23M] $4] A981) AL) HONG) 104M) 1006] 1) ae] 4gNS] 2088) LISD] 1008 CV] nas) sem] moan on] sian) a) 4535) sian} aap] an] sk) totet) a0 Sore: Antal Repos (201-2 to 201411 Coit Bou Koc s‘Table )19 Segment wise India's Export of Coir and Coir Products since 2001-02 in Quantity (in tones) nd Yeu Hm | Tit} cut] Yan | tke) am | Gnesi | ati | Crys | Cn] Roe | Ta ie ta | wd | it | hot \ is | | anes wat [avon] vn] uns] un) ate] as] ia] wo} ea] wi] ma] aso] aya rc Med) | S303) 00903 | D100 | TARA ms) on] ala) i) gx W320) OUST SSS) TANS —— +++ MMA | S408) TLIO] AMMAN] DSA | ODL) A545) 898] I8) ASG) TASH] Ib) SASL -— ~ NOMS | ON) td) Han Togmss) 2M) 51800) ) 3s] th) eB) NR) LD - —_|—+_+ AQSTKAD | IMKTLAB | SMM] ASRS) | 12300) ROIS] 81252) 188298] Seg) R10] 0) 1600] IM SIS +——}~ LIT it) SOD] OMSL] 938604] TSI] ARHT | 8 || OLS | A) Way) $102) OTN) SIM) UALR) 10035) PRIA | 12899 ‘ 7306) 1TH SSSS10) | S321] 9690] $3880) $050) LIHRAS) 48125) RADA) Laas] 8) 10838] 521 | {jt vom | san] otal gia] gas) sim) ara] ns] gn) ain] gsm] am] tua ibn | meno} syn} iss} st) 2) ———___+ {Mise} sik) ys] aa] nl] st) a) a UR] $8) tm) aT) ww) at) sans] ass) sr) eas) T T — Gas | tal} wm} au) as) sa] wm) an] me] an] ta) me] ain) pr —— —- T os ee Toe fmt) at] dat) ka) mt) cag) a} ron aan) tnt) at + a ee ni ut) ci Darya} as] as] te) Yt Sse: Amal Reports (20142 0 2010-11) Coit Boar, Koh,The volume of coir and coir products exported from India since 2001-02, the absolute as well as percentage increase or decrease over the previous years and the trend value are presented in table 2.20. It is observed from table 2.20 export of coir and coir products from India significantly increased from 71,335 inetric tonnes in 2000-01 to 3,21,016 metric tonnes in 2010-11. This table also shows that the compound annual growth rate exports 18.19 percent, and trend values for coir and coir products export increasing from 67,493 tonnes in 2001+02 to 1, 90,000 tonnes in 2010-11 showing an increasing trend over a period of 10 years. The table also shows the linear growth rate of coir products exports 32.98 percent. Table 2.20 The Coir and Coir Products Exports since 2001-02 (Quantity) Year | Quantity (in | Increase or | Percentage of | Trend Metric tones) | Decrease _| Increase/Decrease | _ Value 2001-02 71,335 : =| 67,493 2002-03 84,183 12,848 5.69 51,000 2003-04 1,02,253 18.070 18.01 71,000 2004-05 122,927 20.673 21.46[ 88,000 2005-06 1,36,027 13,100 20.21] 1,05,000 2006-07 168,755, 32,728 10.65] — 1,22,027 2007-08 1,87,567 18,812 24.05 | _1,39.750 | 2008-09 1,99,924 12,357 11.14 1,56,560 2009-10 2,94,508 94,584 6.50] 1,73,920 2010-11 3,21,016 26,508 47.30] 1,90,000 LGR 32.98 - ~ - CAGR 18.19 : 5 5 Source: Annual Reports (2001-02 to 2010-11), Coir Board, Kochi. 2.6.4 India's Exports earnings from Coir and Coir Products The value of coir and coir products exports from India since 2001-02, the percentage of increase or decrease over the previous year and trend values are shown in table 2.21. It is observed that the value of coir and coir products exported from India was the maximum of Rs. 320.58 crore in 2001-02. The value increased from Rs. 639.97crore in 2008-09 to Rs. 807.07 crore in 2010-11 registering annual growth 7rate of 0.37 percent. The table also shows that the compound annual growth rate of exports 10.80 percent. It is also observed that value of export declined in Rs. 592.58 crore in 2007-08 making negative annual growth rate, The reasons attributed to decrease in value of export was the severe competition from other coir producing countries and other natural and synthetic products like jute, sisal, abacca, rubber, PVC etc. It is also revealed that the trends values for coir and coir products exports increased from Rs. 204 crore in 2001-02 to Rs.889 crore in 2010-11 showing an increasing trend over a periad of 10 years. The table also shows the linear growth rate of coir and coir products exports 16.421 since 2001-02. Table- 2.21 The Coir and Coir Products Exports since 2001-02 (Value) Percentage of Year hae — Tnerease/ | Trend Value Decrease 2001-02 | 32038 : ; 2002-03 | 352.70 32.12 10.01 204,00 2003-04 | 407.49 34.79 15.53 | 289.00 2004-05 | 473.40 66.00 16.17| 37471 2005-06 | 508.45 35.05 Ta] 459.50 2006-07 | 605.17 96.72 19.02 | S445 2007-08 | 592.58 “12.59 2.08 | 629.00 2008-09 | _639.97 4739 799 71400 2009-10 | 804.05 164.08 %5.63| 799.00] 2010-11 | 807.07 "3.02 037 [889.00 TGR | 16421 : 7 : CAGR%| 10.80 : 7 5 ‘Source: Annual Reports (2001-02 to 2010-11) Coir Board, Kochi. 2.6.5 Direction of India’s Export of Coir and Coir Products During the year 2010-11, India exports of coir and coir products to 111 ‘countries all over the world. The USA remained to be the largest importer of coir products from India. United Kingdom and the countries in West Europe viz., Netherlands, Germany, France Italy, Belgium, Denmark, Greece and Portugal continued to be the major market for coir products, The other countries which imports ‘small quantities are Australia, Canada, Sweden, United Arab Emirates, Japan, Israel ‘and Saudi Arabia. The increasing trend in coir production encourages the country to ‘export products to more and more countries. nCountry wise export trends, as may be seen from table 2.22 and figure 6 show that USA continues to be the largest market for Indian coir and coir products in terms of rupee value. Exports to USA during 2010-11 registered marginal decline of 14.70 percent. Countries to which exports from the coir industry increased during the year ‘were: Spain (0.30%), Netherland (1.02%), France (18.21%), Belgium (42.88%). On the other, the countries showing a declining trend during the period 2010-11 comprised; Australia (10.60%) and U.K (4.86%), Germany (16.17%), Canada (1.68%), Italy (14.65%). Table: 2.22 India’s Exports of Coir and Coir Products to Major Countries since 2006-07 (Rs. Crore) Percentage increase in Countries 2006-07] 2007-08 | 2008-09] 2009-10] 2010-11] 2010-11 over 2009-10 USA 221.98 | 200.50 | 196.60 | 240.89 “14.70. UK 55.39| 49.50[ 52.35] 58.16 4.86 Germany 4592| 42.00] 52.87] 44.51 =16.17 Netherlands 4195| 49.54) 48.14 | 66.27 1.02 Ttaly 2629| 28.16] 2692] 38.56 714.65 [ Spain 2539[ _24.23| 19.85 | 29.35 0.30 Canada 1966| 2049 | 20.47| 18.43 =1.68 France 17.45 19.69[ 18.99 20.48 18.21 ‘Australia 15.10] 17.28] 19.08] 23.28 10.60} Belgium 10.04] 9.78] 15.14] 14.69 42.88 Total (incl others) | 605.17[ 461.17] 470.41 | 554.62. -7.76 Source: Annual Reports, (2006-07 to 2010-11) Coir Board, Kochi. As there is no strict enforcement of statutory and mandatory control in coir export by Karnataka state, the exact quantity of coir products exported by the state could not be stated. However, it is evident from the field survey that ten units which have been started in different districts of the state produce rubberized coir products are depending mainly on the foreign market. A geographical demarcation is very difficult both regarding exporting and importing sides. Of Inte, a few exporters of coir products have confirmed that there is good demand for coir products and furnishings made out of golden white fibre. The major importers of the coir products are E.E.C. countries, Australia, New Zealand, Japan Korea, Saudi Arabia, South Africa etc.”Figure: 6 India’s Exports of Coir and Coir Products to Major Countries since 2006-07 t rr frideseé Countries 10K mmgias 1B 2) ane2.7 CONCLUSION The Coir Industry play. vital role in Economic Development of the country in terms of output and employment potential in organized and unorganized sectors and provides productive occupation for weaker sections of the society in rural and semi- uirban areas. The Coir Industry is one of the most important traditional small enterprises in India which provides employment to about 6.5 lakhs of people, particularly in Kamataka state which provides employment opportunity to about 27400 of people during the year 2010-11. Development of coir industry depends on a largest extent of the availability of basic raw materials, which is derived from the coconut, Therefore, coconut is a great relevance and important in the coir sector. India is one of the leading coconut producers in the world, producing 13 billion nuts per annum, India accounts for almost 26 percent of the world’s total coconut production, India is the third largest producer in the world. Coconut is mostly cultivated in the coastal regions of the country. The states that have abundant coconut growth are Andhra Pradesh, Assam, Goa, Karnataka, Kerala, Maharashtra, Orissa, Tamil Nadu, Tripura, West Bengal, Andaman and Nicobar Islands, Lakshadweep and Pondicherry. Coconut area is distributed in 18 states and three union territories under different agro-climatic conditions. India is the largest coir producer in the world accounting for more than 80 percent of the total world production of coir fibre. The production of coir and coir products have been increased from 8,15,175 metric tonnes in 2001-02 to 12,23,000 metric tonnes in 2010-11. India is not only the largest producer, but also, the main consumer of coir in the world. The Indian market constitutes around 45 percent of the world market for coir and coir products. Over 65 percent of the coir produced in India is consumed internally. With the fall in exports since 1970's developing the domestic market was assumed tremendous importance and as such Indian Coir Industry become increasingly dependent on the home market. The consumption of coir and coir Products have been increased from 2,12,900 tonnes in 2001-02 to 2.42,600 tones in 2010-11. aIndia, one of the top producers and exporters of coir in intemational market. The Indian coir products are in great demand in the international market because of their special attributes like ftness, price, crafismanship, quality, attractiveness and Eco-friendly, biodegradable, renewable natural resources, non-pollutant, usage of the product is up to the expected level when compared to plastic and other environment pollutant item. The coir industry is contributing to foreign exchange earings by export of coir products. Export of coir and coir products from India during the year 2010-11 was 321016.02 mefric tonnes yalued at Rs.807.07 crores as against export of 294508.05 metric tonnes valued at Rs.804.05 crores made during the corresponding, period of the previous year. The increase recorded in quantity is 26508 metric tonnes (9%) and in value is Rs.3.02 crores (0.4%). During the year 2010-11, 111 countries imported coir and coir products from India. USA continues to be the major importer of coir and coir products in terms of quantity with its share of 25.46 percent and 15.82 percent in value. China became the major importer of Coir & Coir Products in terms of quantity with a share of 26.26 percent and 15.40 percent in value. European Union countries viz. Netherlands, UK, Germany, Italy, Spain, France, Belgium. Denmark, Portugal, Finland, Sweden, Irish Republic, Austria and Greece imported 29.97 percent in terms of quantity and 35.74 percent in terms of value from India. The other countries, which imported substantial quantities of coir during the year under report, are Canada, Australia, South Korea, Japan, Russia, and Brazil. . 15References: 1. Pyle. M. V (1976):,“A Study of Coir Industry in India: Problems and Prospects(1975)", Coir Board, Cochin, P.1. 2. Coir Board (1966): “Coir Yarn, A Study on Different Types of Coir Yam Produced in India, Coir House, Eochin, P.2. "3. Coir Board (1969): “Commodity Note on Coir Mattings, Rugs, Morzouks and Carpets”, Cochin, P.1. 4, Ibid. 5. Ibid. 6. Bhaskaran, Unnithan, K (1970): “Coir Industry in India with Special Reference to Marketing and Trade”, Coir Board, Cochin, P.2. 7. Coit Board, Commodity Note on Coior Mattings etc.. Op.ch, pp..2. 8. Subhash Chandran, B (1995): “The History of Coir, Kayar Vyavasaya Naveekarana Seminarum Pradarsanavum” (Smaranika) (Malayalam Script), Directorate of Coir Development, Thiruvananthapuram, P.169. 9. Coir Board, Commodity Notes on Coir Mattings etc., Op cit., p.2. 10, Annual Report of 1992-93, Coir Federation, Bangalore, P.2. M1. Tei, P. 2. 12, Indian Coconut Committee, History and Homes of Coconut, Coconut Bulletin (Sep. 1954): P. 202, 13. Coir Board, Commodity Notes On Coir Matting's etc., Op cit: PP.1. 2. 14, Subhash Chandran. B (1995): “The History of Coit”, Op cit. P. 169. 15. Consists of keeping the green husk soaked in back water for 8-10 months and fibre in separated manually. 16. Refers io defibering of brown husk either through defibering of decorticating machine which results in brown fibre. 17. Coir Board (1989): “India's Production, Exports and Intemal Consumption of Coir", Cochin, P.1. 18. Coir Board, Coir News (2010), Vol. 39 Book No. 1, P. 16, Coir House, Kochi. 19, Coir Board, (2010): “ India's Production, Exports and Internal Consumption of Coit”, Cochin. P.1. « 20. Coir Board (1989) Op. cit. P. 3. 21. Coir Board (201) Annual Report, Kochi P. 23. 22. Ibid. P. 72, 623. Coir Board (2010-2011), “Fifty Seventh Annual Report”, Coir House, Kochi. 24, Ibid. p. 15. . 25. Coir Board (2010-11),"Export Performance of Coir and Coir Products for the period April 2010 - March 2011” Kochi, P. 4. 26. Ibid. 27. FAO of United Nations, Committee on Commodity September. 2010, P. 275. 7