Traditional Sector in Kerala

Traditional sector in Kerala:An overviewCoir, Handloom & Handicrafts

Geo Jose

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Traditional Sector in Kerala - An overview

Kerala is well known for its traditional industries. These industries include coir, cashew,

handlooms, handicrafts and bamboo. The traditional industries are one of the major sectors, which

give employment to more than 1 million people in Kerala. Kerala's position is 12th in the industrial

ranking among the major 16 States in India. Traditional industry has its unique stand in the world

which is embarked by its presence in the list of geographic indicators as shown below.

To redress the misalignment between output and employment, it is necessary to ensure that

traditional Sector becomes an economically viable activity with improved income prospects. At the

same time dependence on traditional Sector will have to be reduced by a shift to alternate

employment opportunities especially in rural areas. Many nations in the world have been able to

improve the income and living standards of their people by ensuring shift in their labour force from

traditional areas to more productive sectors through appropriately designed policy interventions.

Traditional Industries such as Cashew, Coir, Handloom, Handicrafts and Khadi play a substantial

role in generating employment in rural areas. Social considerations will guide the Government policy

for development of these sectors.

This report brings out critical issues relating to traditional sector which mainly includes coir,

handloom and handicrafts.

Geographic indicator Traditional sector1 Aranmula Kannadi Handicraft2 Alleppey Coir Coir3 Balaramapuram Sarees and Fine Cotton Fabrics Handloom4 Kasaragod Sarees Handloom5 Kuthampully Saree Handloom6 Chendamangalam Dhoties & Set Mundu Handloom

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Handicrafts

Handicraft industry is one of the traditional industries of Kerala, providing employment to

Artisans. Eighty percent of these artisans are from socially and economically backward classes.

Kerala has the tradition of making beautiful handicrafts with ivory, bamboo, palm leaves, seashells,

wood, coconut shells, clay, cloth, coir, metals, stone, and lacquer ware and so on. Many old

handicraft classics can be seen in Palaces, old heritage homes and museums in the State.

Importance of Handicraft IndustryKerala State Handicrafts Apex Co-operative Society (SURABHI), Handicrafts Development

Corporation and Artisans Development Corporation are the major promotional agencies in the

handicraft industry. SURABHI is the apex organization of primary handicrafts co-operatives

established with a view to uplift the artisans by marketing the product produced by the primary co-

operatives and implementing welfare schemes with the assistance from State and Central

Governments. There are 46 societies and SURABHI made a profit of ` 18.2 lakhs from 10

exhibitions and fairs in the year 2013-14. Details are given in table 1.

Handicrafts Development Corporation of Kerala is engaged in procuring and marketing

handicraft products by giving fair returns to artisans through SMSM Institute and Kairali emporia

spread all over India. At present it is having a network of 19 such sales emporia other than SMSMI.

1 2 3 4 5 6 7 8 92007-2008 103 20000 26.95 379.9 -33.25 5 14.29 11.91(P)2008-2009 103 10000 47.48 280.1 -48.47 2 6.72 2.35(P)2009-2010 103 13000 25 250.52 -62.34 7 11.13 2.84(P)2010-2011 46 13000 30.98 272.53 -51.52 7 20.15 1.73(L)2011-2012 46 12000 25 274.11 -34.7 6 12.86 0.95(P)2012-2013 46 30000 20 293.74 -33.86 6 16.73 4.52(P)2013-2014 46 30000 100 337.17 -6.12 10 69.25 18.18(P)

No offairs/Exhibit

ions

Participation in Trade fairs/Exhibitions

Expenditureincurred

(` in lakh)

Source: SURABHI, Kerala

YEAR No. ofSocieties

Totalemployment

(nos)

Assistance by Govt(` in lakh)

Turnover(` in lakh)

Profit/Loss

(` in lakh)Profit/Loss(` in lakh)

Table 1Performance in Recent Years- SURABHI

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HDCK has been running a Common Facility Service Centre (CFSC) at Thiruvananthapuram for

artisans who engaged in development wood crafts. HDCK made a profit of ` 19.80 lakhs from 32

exhibitions and fairs in the year 2013-14.Details are given in table 2. The Kerala Artisans

Development Corporation (KADCO) is one of the State agencies to provide assistance to artisans for

establishing production units, promoting marketing of products and providing employment

opportunities through schemes of trade fairs and marketing centres.

Recent initiatives/Schemes by Kerala government for strengthening the sector

As part of schemes to provide more income to the experienced workers in the handicraft sector

assistance is allotted to different primary cooperative societies and SURABHI in the budget 2014-15.

A brief detailing of the proposed schemes is as below.

Renovation and modernisation of primary handicraft societies in Kerala

No of Fairs/Exhib itions

Expenditure

incurre d (`in lakhs)

Profit/L oss(` in lakhs)

1 2 3 4 5 6 7 82007-2008 142 27.5 1112.4 -182.98 22 32.12 8.522008-2009 136 115.2 1136.16 -114.37 21 41.83 6.082009-2010 131 322 1282.63 -79 29 35.7 10.082010-2011 124 121.03 1488.81 -95.36 25 51.54 11.162011-2012 113 75 1530 -195.51 24 46.37 13.52(p)2012-2013 96 560 1709.15 -151.31 49 94.78 26.30(p)2013-2014 95 96 1565.97 -223.55 32 65.52 19.80(p)

Source: Handicrafts Develiopment Corporation, Kerala

Profit/ Loss(` in lakhs)

Performance in Recent Years

Participation in Trade fairs/ Exhibitions

YEARTotal

employment(nos)

Assistance byGovt (` in

lakhs)

Turnover(` in lakhs)

Table 2

SL No Activity Amount in lakhs1 Renovation of work sheds ` 2002 Working capital Grant ` 503 Design and technology up-gradation scheme ` 304 Skill up-gradation training ` 40

Total ` 320

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Renovation of showrooms, completion of CDC building and computerisation

At the State level also, there are institutions like Handicraft Apex Society, Handicraft

Development Corporation and Artisans Development Corporation to look after the overall

development of handicraft sector. Under Five Year Plans, the Central and State Governments were

trying to help the industry by improving raw-material supply, modernisation of tools, up-gradation of

skill of artisans and developing marketing outlets. The Plan Documents indicate improvement in

production and exports Plan after Plan. However the latest Plan Documents show existence of

problems like middlemen, shortage of materials, defective marketing, outdated tools and ailing co-

operatives in this sector

To overcome some suggestions have popped up to modernize and to stimulate flow of money

into this sector. They are as given below

Scheme for creation of new designs for innovative products in Handicrafts sector.

Professional marketing facilitating injection of private investments.

Innovative approach for marketing support to ethnic handicrafts of the State.

Skill Development Training to improve the workmanship of artisans / craftsmen

Modernise the sector by ushering in technology-based management in partnership with

national institutes.

Venturing into e-commerce in an attempt to create inroads into the lucrative online market.

To benefit from the tourism potential in the State, societies should consider establishing

handicrafts stalls along the tourism circuits with the assistance of the State government.

Schemes should be there to provide interest free loans via NABARD and MUDRA banks

SL No Activity Amount in lakhs1 Exhibitions ` 502 Renovation of showrooms ` 703 Publicity ` 204 Completion of CDC building ` 505 Computerisation ` 10

Total `200

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Handloom Sector

In India, handloom weaving is one of the largest economic activities after agriculture

providing direct and indirect employment to more than 43 lakh weavers and allied workers. This

sector contributes nearly 11% of the cloth production in the country and also contributes to the

export earning of the country. In fact, 95% of the worlds hand woven fabric is produced in India. The

handloom sector has a unique place in our economy and its strength lies in its uniqueness, flexibility

of production, openness to innovations, adaptability to the suppliers requirement and the wealth of

its tradition. (Source: Annual Report 2013-14 of Textile Ministry). The share of Kerala in the national

handloom industry remains relatively small even as compared with other Southern states, namely

Tamil Nadu, Andhra Pradesh and Karnataka.

The Handloom Sector in Kerala stands second to the coir sector in providing employment

among the traditional industries of the State. The Handloom Industry in the State is mainly

concentrated in Thiruvananthapuram and Kannur District and in some parts of Kozhikode, Palakkad,

Thrissur, Ernakulam, Kollam and Kasaragod Districts. Kerala's Balaramapuram handloom sarees

are well known for its simplicity, exquisite design and beauty. Kannur handloom shirting, furnishing

materials etc. occupies an important place among handloom fabrics of India. Kasaragod sarees are

famous for its colour, design and quality The Industry is dominated by the Co-operative sector,

covering 97% of total looms. The remaining three % of Handlooms units are owned by Industrial

entrepreneurs. The Co-operative sector consists of factory type and cottage type societies as

against 664 during March 2013. Of this, 171 are factory type and 534 are Cottage type societies. Of

these 705 societies, 426 are in working condition as in November 2014.The number of factory type

Co-operative Societies functioning at present is 107 (63%) and cottage type societies is 319 (60%).

Details are given in table 3.

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The major varieties of products produced in the handloom sector of the State are dhothis,

furnishing material, bed sheets, shirting, saree and lungi. These items contribute about 67% of the

total production of handlooms sector. About 80% of the major items are produced in the southern

region followed by Northern region (12%) and Central region (5%). Of the total production, nearly

95% is contributed by the co-operative sector and the balance of 5 % is by the units in the

entrepreneurial sector.

Government Assistance extended for the development of handloom industry, ` 391.38 lakh

by way of loan and ` 1747.71 lakh by way of grant in 2013-14 is shown in table 4.

The total value of production shows a decrease of 6% from 222.87 crores in 2012-13 to

210.57 crores in 2013-14. The total number of weavers employed shows a sharp decrease from

51171 in 2012-13 to 21230 in 2013-14. The number of women employed is also decreased from

21434 in 2012-13 to 13061 in 2013-14. The total number of employment generated has decreased

from 105.86 lakh man days in 2012-13 to 92.19 lakh man days in 2013-14. Details of production and

employment generated are given in table 5

SlNo. Item 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

a Factory type:

1 Working 109 110 108 108 102 1072 Dormant 48 40 41 39 36 373 under liquidation 17 15 16 17 13 27

4 Not startedworking 2 2 2 2 2 0

Total (a) 176 167 167 166 153 171b Cottage type:1 Working 260 260 260 259 329 3192 Dormant 112 117 117 113 71 68

3 under liquidation 40 41 41 43 101 104

4 Not startedworking 11 11 11 10 10 43

Total (b) 423 429 429 425 511 534Total 6 (a+b) 599 596 596 591 664 705

Table 3Number of Handloom Co-Operative Societies in the state

Source: Directorate of Handloom & Textiles

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As per the Handloom Census of India 2009-10, (Ministry of Textiles, Govt of India) there are

around 12,000 Handloom Households in Kerala. Assuming an average of two active weavers per

family, the total number of weavers in the state would be about 24000. As per the report of the

Survey on Handloom Sector in Kerala 2009, there were 469 societies in Kerala. The total

membership in these societies was 65964, of which only 57,405 (87%) were active in the industry.

Hence there exists an ambiguity regarding the size of employment in the sector. To solve the issue,

a new scheme Detailed Survey on Handloom Industry in Kerala has been initiated in Annual Plan

2013-14 and is being conducted by Centre for Management Development. The objectives of the

Survey are the following,

To ascertain both physical as well as financial structure of the handloom sector.

To obtain the details regarding the number of household and non household weaving units,

production of handloom textiles, type of looms. Consumption of yarn, number of working days,

earnings of the members, bank details and the physical assets of all societies, ownership of

looms, sales, exports, wages etc.

To study the socio economic impact benefited for weavers due to implementation of various

developmental activities.

2012-13 2013-14a Loan

i State Government 67.15 55.82ii Central Government 0 318.53iii N.C.D.C., NABARD, HUDCO 64.97 17.03

Total(a) 132.12 391.38b Granti State Government 1475.15 1581.19ii Central Government 142.35 43.37iii N.C.D.C., NABARD, HUDCO 52.92 123.15

Total(b) 1670.42 1747.71

c Amount spent as Rebateon the sale ofHandloom cloth:i State Government (10%) 372.17 315.97

ii Central Government(20%)(MDA-50% CSS) 128.95 12.6

Total(c) 501.12 328.57

Table 4Assistance extended by way of Loan and grant for the Development of

Handloom Industry (` lakh)Particulars


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To study about the financial assistance received in each co-operative societies under various

schemes (loan, share and grant) and present outstanding dues.

To study problems faced by the primary co-operative societies due to higher rate of working

capital interest, blockage of funds with HANTEX / HANVEEV and State Government.

Evaluation study conducted by the State Planning Board on Handloom Industry in Kerala

Sl.No. Item 2010-11 2011-12 2012-13 2013-14

I Co-Operative Sector

i Number of looms 33653 30478 29761 21898ii Production of Handloom cloth (M.M.) 25.55 26.88 28.37 33.32iii Value of Production (Rs.in crores) 182.36 193.62 214.1 204.71iv Productivity (M/L/A) 759.12 881.98 953.19 1521.55v No.of weavers 50717 49930 50433 20584

vi Employment generated (mandays inlakhs) 91.58 85.3 101.6 89.34

vii No.of women employed 20039 20784 20854 12688

2 Corporate/unorganised/privatesectori Number of looms 6500 6500 6380 510ii Production of Handloom cloth (M.M.) 1.13 1.01 1.08 0.24iii Value of Production (`.crores) 8.6 8.52 8.77 5.86iv Productivity (M/L/A) 173.85 155.36 169.28 470.59v No.of weavers 1669 1660 738 646

vi Employment generated (mandays inlakhs) 5.07 5.02 4.26 2.85


3 Total: Co-operative, Corporate andunorganised sectori Number of looms 40153 36978 36141 22408ii Production of Handloom cloth (M.M.) 26.68 27.89 29.45 33.56

iii Value of Production (`.crores) 190.96 202.14 222.87 210.57

iv Productivity (M/L/A) 932.97 1037.34 1122.47 1992.14v No.of weavers 52386 51590 51171 21230

vi Employment generated (man days inlakhs) 96.65 90.32 105.86 92.19


Table 5Production and Productivity under Handloom Industry in Kerala 2010-11 to 2013-14


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The main problems of handloom industry are lack of adequate working capital, inadequate

availability and increasing price of raw materials, high wage rates on alternative occupation, stiff

competition from power loom sector and low sales turn over. To solve these problems State

Planning Board conducted an evaluation study on Handloom industry in Kerala. The findings of the

study are suggested based on both primary and secondary data.

Promotional Measures of Handloom Sector

Promotional measures of handloom sector such as procurement, sales and marketing of

handloom fabrics are being undertaken by two state level organizations namely Hantex and

Hanveev.

Hantex is the apex society of around over 450 primary handloom societies in the state, was

formed in 1961 with the objective of organizing the handloom industry in the state on sound

commercial basis. Despite grants and loans being given to the society, the organization is running at

a heavy loss as per the balance sheet of the year 2013-14.

The Kerala State Handloom Development Corporation Ltd. (HANVEEV) is a Government of

Kerala undertaking incorporated in 1968 for the welfare and development of traditional weavers in

the unorganized sector and engaged in the manufacturing and marketing of wide range of handloom

products depending on the market trends and sold at various outlets throughout Kerala. At Present

Corporation have 52 own showrooms, 6 exclusive agency showrooms and 33 production centres.

This organisation is also running in heavy losses. During 2013-14, the sales turnover was ` 1755.59

lakh.

Important recommendations for reviving handloom industry in the state

Modernisation of showrooms or retail outlets

Semi-mechanization of handlooms

Decent work place

Installation of large scale dyeing and design facilities

Readymade garments units in all handloom societies

Payment of wages in time from the primary societies

Modernization of old looms

Skill training programme for sufficient supply of skilled man power

Devise measures to improve quality of handloom fabrics

All societies should open up sales depot/outlets in their premises

Fake handloom products should be controlled by legal measures

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Coir Industry

Coir is a natural fibre extracted from the husk of coconut used for making various Coir

products. India is the largest producer of coir in the world accounting more than 80 % of the

Production of coir fibre. The export of coir and coir products in India reached `1476.04 crore during

2013-14 recording a growth rate of 27 % in value terms over the previous year. Return to nature

concept has brought intensive affinity for coir and coir products all over the world. During the

reporting period, coir and coir products were exported to 103 countries all over the world and among

these countries, China and USA ranked first and second position in import. The share of the public

sector institutions from Kerala in export is ` 3.6 crore in value terms during 2013-14 which shows a

marginal growth compared to previous year. It is a major agro based export and employment

oriented traditional industry in Kerala. This sector is of prime importance in Kerala as it is the next

avenue of employment after agriculture. It provides employment to nearly 3.75 lakh people of which

women belonging to BPL constitute 75 %. The availability of coconut husks, natural conditions

provided by the lakes, lagoons and back waters for retting coconut husk and traditional expertise of

the people were the reasons for flourishing the industry in the state, especially in the coastal area.

Co- operative sector plays a major role in the coir industry in Kerala. The coir industry is classified in

to three sectors viz: De-fibering sector, Yarn sector and Product sector.

In the State of Kerala, to give specific emphasis for the sustainable development of Coir

industry Government have constituted a separate administrative department and a Coir Directorate.

Directorate of Coir development with 10 project offices all over the state is the agency for

implementing all the policy decisions of the Government of Kerala as regards Coir Industry. Kerala

State Coir Corporation (KSCC), Coirfed, National Coir Research and Management Institute

(NCRMI), Foam Mattings India Ltd. (FOMIL), Kerala State Coir Workers Welfare Fund Board and

Coir Co- operatives are the other major institutions in Coir sector. Coir yarn producers, Product

manufacturers and exporters in private sector are also stake holders in the industry.

Kerala State Coir Corporation (KSCC) was set up in 1969 for the systematic development of coir

industry in the State. It caters the needs of the Small scale coir manufacturers by providing them

manufacturing and marketing facilities. Its diversified operations include curled coir manufacturing

and allied products sectors. The value of export of the corporation has increased from 1.17 crore to

2.44 crore during the year 2013- 14 compared to previous year.

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FOMIL caters to the needs of domestic and international markets with a wide range of

products by its accent on technology; infrastructure and machinery such as its Denmark make Latex

Backing Plant producing international quality latex backed mattings, Modern Dye House, Semi

Automatic and Fully automatic Power loom, Auxiliary facilities and uninterrupted power system etc.

The value of exports from FOMIL has increased to 0.72 crore during 2013-14 compared to previous

year.

The Kerala State Co-operative Coir Marketing Federation (Coirfed) is the apex federation of

primary coir Co-operative societies spread all over Kerala. It is entrusted with the task of

procurement of the entire products of the member societies and marketing the product of these co-

operative societies which provides sustenance to workers especially women. The value of export of

Coirfed has shown a sharp decline from 1.51 crore to 0.30 crore during 2013- 14 compared to

previous year.

The National Coir Research and Management Institute (NCRMI) is a State Government

institution set up to strengthen the R&D activities in coir sector to enable the industry in producing

more value added products and products with new designs at reasonable cost. The NCRMI has

developed improved version of De-fibering Machine with crusher for both green and dry husks with a

processing capacity of 600 husk per hour. It has also developed Automatic spinning machine,

Willowing machine, Electronic ratt and screener with more productivity, Agri coir cell and fiber

softening techniques. It is also developing pneumatic loom for the production of coir Geo textiles and

acoustic panel for the use in industry.

The export of coir and coir products from India in quantity during the year 2013-14 was

537040 MT valued at ` 1476.04 crore as against 429501 MT valued at 1116.03 crore achieved

during the previous year. This recorded an overall increase of 25 % in quantity and 32 % in value

over the export of previous year. The achievement during the year is much above the target fixed by

Govt. of India, i.e., 1.47 times of the fixed one. During the year 2013-14 the export of curled coir, coir

fibre, coir pith, coir rope, coir yarn, coir other sorts ,coir geo-textile, handloom matting, Power loom

Mats and rubberized coir of India have shown an increase both in terms of quantity and value when

compared to the previous year. The items such as coir rugs & carpet have shown negative growth

both in terms of quantity and value when compared to the figures of the previous year. Handloom

mats have shown decrease in terms of quantity and an increase in terms of value.

State Government has been providing adequate financial support to the development of Coir

sector. The exporters collect products from small scale producers co - operatives through Kerala

State Coir Corporation (KSCC) under Purchase Price Stabilisation Scheme. Kerala State Coir

Corporation (KSCC), Coirfed and Foam Matings (India ) Ltd.( FOMIL) have started exporting large

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quantities of coir products due to the concerted effort taken by Government for exhibiting products

by participating in various national and international exhibitions and conducting Coir Kerala an

International event on Coir and Natural Fiber Products aimed at exploring and expanding the

international market for coir and coir products ,continuously every year from the year 2011.The

details of export Coir and Coir Products during last 5 years by Public sector undertakings / Coirfed in

Kerala is in table 6 and Fig 1.

Table 6Export of Coir and Coir Products by Coir Public Sector

Undertakings/ Coirfed (` in lakh)

Year Kerala State Coir Corporation Foam Mattings(India) Ltd. Coirfed

2009-10 0.29 9.63 Nil2010-11 10.42 33.61 17.752011-12 Nil 25.49 30.392012-13 117 58.29 150.522013-14 244 72.24 29.67

Source : Directorate of Coir Development, Thiruvanathapuram

Fig 2: Export of Coir and Coir Products during last 5 years (Value in lakh)

Source: Annual Report 2012- 13 and 2013- 14 of Ministry of Small and Medium Enterprises,

Govt. of India, Directorate of Coir Development, Govt. of Kerala

0

50

100

150

200

250

300

2009-10 2010-11 2011-12 2012-13 2013-14

Kerala state coircoporation

Foam Mattings Indialimited

Coirfed

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The steady growth in the export of Coir and Coir products at national level is visible in the bar

diagram above. In the Kerala context, the export through public sector undertakings/ Coirfed has

increased considerably during 2012- 13 and 2013-14.However the Administration Report 2013- 14 of

Cochin Port Trust shows that there is decline in the export of Coir products of the State in total

during 2013- 14 compared to previous year which may be due to the acceleration of domestic

demand.

The total number of societies decreased from 954 (as on 31.3.2013) to 945 (as on

31.03.2014). But the number of working societies increased from 491 (as on 31.3.2013) to 517 (as

on 31.03.2014) as a result of modernization and the revival programme initiated by the department.

Details of the societies are shown in table 7.

The conduct of Coir Kerala 2014 at Alappuzha, an International fair on natural fibre and

allied Products participating buyers from various countries, Inauguration of Coir Machinery Factory

at Alappuzha , Construction of High Tech Coir production centre at KINFRA Park Adoor, Providing

Working Capital assistance of 14.25 crore to Co- operatives, Extension of infrastructure assistance

to 57 societies, Government share participation in 84 societies and distribution of Market

Development Assistance to 20 Co- operatives, KSCC, FOMIL AND COIRFED are the major

achievements during 2013-14.

The thrust areas of Govt. of India for the development of Coir Industry in the country are

modernisation of production infrastructure without displacement of labour, expansion of domestic

market through publicity and propaganda, promotion of export of coir and new products through

market promotion measures abroad, promotion of research and development activities in process

improvement, product development and diversification and elimination of pollution, development of

skilled manpower through training, and extension of research and development findings through field

demonstrations in association with the state governments.

Coir Department achieved 100 percent financial target for the Market Development

Assistance scheme for the sale of Coir and Coir Products during 2013- 14 spending an amount of

5.00 crore released as 50 % Central assistance. However State has to explore more the

opportunities of other Central Schemes such as Scheme of Fund for Regeneration of Traditional

Industries (SFURTI), Rejuvenation, Modernisation and Technology Up-gradation in Coir Industry

(REMOT) and Skill Up gradation and quality Improvement Scheme Such as Mahila Coir Yojana

(MCY) implementing through Coir Board. Central Sector Schemes being implemented by the Coir

Board namely Rejuvenation, Modernization and Technology Up gradation(REMOT) and Coir Plan

(General) Scheme, have been re-named by the Ministry of MSME, GOI as Coir Udyami Yojana

(CUY) and Coir Vikas Yojana (CVY) respectively to make it better understood by the Stakeholders.

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Table 7Coir Co-operative Societies in Kerala

SL No: Type of SocietyNo. ofSocieties ason 31.3.2013

No. ofSocieties ason 31.3.2014

1 Primary Co-operative Societies (Yarn Sector)a) Working 382 385b) New Societies which have not started working 106 64c) Dormant Societies 93 94

Total (1) 581 5432 Manifacturing Societies ( Mats & Mattings)

a) Working (started production) 31 31b) New Societies which have not started working 3 3c) Dormant Societies 17 16

Total (2) 51 503 Small Scale Producers Co-operative Societies

a) Working 53 54b) New Societies which have not started working 3 4c) Dormant Societies 6 5

Total (3) 62 634 Husk Procurement and distribution societies

a) Working 1 1b) New Societies which have not started workingc) Dormant Societies

Total (4) 1 15 Fibre Societies (DF mill Societies)

a) Working 24 27b) New Societies which have not started working 12 28c) Dormant Societies 36 25

Total (5) 72 806 Co-operative Coir Marketing Federation 1 17 ICDP Societies

a) Working 19b) New Societies which have not started working 52c) Dormant Societies

Total (7) 718 Total No. of Co-operative Societies

a) Working 491 517b) New Societies which have not started working 124 151c) Dormant Societies 152 140d) Societies under liquidation 187 137

Total (8) 954 945Source : Directorate of Coir Development, Thiruvananthapuram

Coir Department have to plan and implement schemes in association with Coir Board.

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Coir Udyami Yojana (CUY)

This is a credited linked subsidy scheme in coir sector, aims to integrate and develop coir

units. The scheme provides 40% as Govt. subsidy, 55% as Bank loan and 5% beneficiary

contribution for setting up of coir units with project cost up to `10.00 lakh plus one cycle of working

capital, which shall not exceed 25% of the project cost. Working capital will not be considered for

subsidy. Assistance is available to individuals, companies, self help groups, NGOs, institutions

registered under Societies Registration Act, 1860, co-operative societies, joint liability groups and

charitable trusts and there is no income ceiling for the assistance.

Major schemes being implemented in Coir Sector during 2014-15

1. Regulated Mechanization of Coir Industry The Scheme is intended to modernize the

industry and enhance the productivity and the amount sanctioned in the current financial

year is 70.59 crore.

2. Marketing, Publicity, Propaganda Trade Exhibitions and Assistance for Setting up of

Showrooms An amount of 7.50 crore is set apart for the scheme and under this scheme Coir

Kerala-2015 an International fair on Natural fibre and allied Products will be conducted at

Alappuzha, in which buyers from many countries will be participating.

3. Price Fluctuation Fund- The scheme is intended to stabilize the price of coir fibre, yarn, and

coir products. 15.00 crore is the current years allocation.

4. Cluster Development Programme The Scheme is intended for the formation of clusters as

per direction from Government. 2.50 crore is the current years allocation.

5. Coir Geo Textiles Development Programme The scheme is intended for implementing pilot

projects for including Geo textilles as a standard engineering material. 0.30 crore is current

years allocation for the scheme.

6. Production and Marketing Incentive The scheme aims for the promotion of production and

marketing including export of coir and coir products. An amount of 4.00 crore is the allocation

during the current year.

7. Market Development Assistance for the Sale of Coir and Coir Products The scheme is for

the promotion of sales of coir and coir products. Current years allocation for state share is

5.00 crore.

8. Rural coir marketing consortium

9. Margin money loan to entrepreneurs

10. Employee welfare schemes

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Major challenges faced by Coir Industry are weak procurement of coconut husk, increased

production cost, shortage of coir fibre, pollution in traditional method of retting and husk beating,

competition from synthetic and cheaper materials, lack of professional management and migration of

workers to other areas.

So in order to revive and modernise the traditional coir sector, following are some suggestions.

Providing interest free loan via NABARD and MUDRA Banks for modernisation of the current

scenario

Assistance in enhancing the utilization of coconut husks available in the coconut producing

states for coir fibre extraction.

Focus on improving the quality of coir fibre, yarn and products produced in India.

Women empowerment through value addition of coir products and coir pith.

Zero wastage in the extraction of fibre and manufacturing process.

Inventions in product and process for use in betterment of river water, urban waste

management , disaster management ,urban environment benefit, interventions in avoiding

urban heat islands ,rainwater harvesting. avoidance of rain flood water, light weight roof

lawns, use of urban walls for sound reductions and pollution, improvement of quality of life in

indoor of homes and office by gardens, in horticulture process for better water utilization and

higher yields in vegetable production, popularization of production of organic vegetables by

the application of coir pith and coir geo- textiles.

Phasing out the traditional production process in the coir industry by replacing with modern

equipments so as to eliminate drudgery in the production processes and enhance

productivity and quality.

Addressing the problem of infrastructure bottlenecks by providing assistance under the

various schemes of the Union Government.

Supporting modernization and technology up gradation of industry to increase its

competitiveness.

Providing assistance for capacity building in both industry and human capital for the

expected surge in the fibre production and its further processing.

Providing fuller employment to the existing coir workers and generate additional employment

to achieve one million job in the sector predominantly for women.

Undertaking vigorous research and development activities for finding new areas for coir

especially in soil bio-engineering applications and coir pith as a growing medium.

Development of high productivity defibering units and mechanical spinning machines .

Finding new uses for Coir Wood, Coir Pith and explore more business opportunities within

India and abroad.

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Augmenting investment and providing support on both fiscal and non- fiscal front to increase

fibre availability in the country and facilitate high growth and competitiveness of the coir

sector.

Developing domestic and export of coir products ensuring remunerative returns to the

producers and fair wages to the coir workers.

Promoting Consortium approach in the production and marketing of coir products and

implementing schemes for welfare of coir workers.

Promoting towns of export excellence in coir in areas of coir production.

Dovetailing various schemes under the Govt. of India for infrastructure development and

modernization of coir industry

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ConclusionAn analysis of the traditional sector in Kerala is in some ways both heartening and disconcerting

at the same time. What one sees is a sector with enormous potential, which seems to be

growing despite the many restraints. What, should therefore, be the lookout of the sector in the

future. Where are its growth opportunities and how can government policy help it reach there?

What should be the focus of the sector? What should be the policies to be adopted? Traditional

sector enjoy certain inherent strengths such as lower overhead costs, flexibility in production,

informality in labour relations, possibility and accessibility of local resources and skills, capacity

to execute small orders and to offer customized services. To counter competition in the long run

and to be economically viable, they need to improve its productivity and quality, reduce costs

and innovate. Government policy should promote the traditional sector by providing them means

to increase their efficiency and competitiveness within a market driven economy. For this it is

essential that it no longer follows a protective stance, which is harmful to the sector. What is

required is an enforcement of time bound concessions, emphasis on core-advantage of

traditional sector, emphasis on innovations, provisions of more credit to the sector, and

strengthen local associations of small units as collectively they can counter many of their

problems. Till date, however, the policies have been paternalistic in nature, leading to

dependency.New approaches like the cluster approach or harnessing the power of industry

association should be encouraged. Undoubtedly the traditional sector has enormous potential

and is a crucial aspect of the Kerala economy. However, for the sector to fully realize its

potential, it is essential that it firstly wakes up to the new reality of a liberalizing India and

secondly that the Government should realize the urgent need for a shift in policy, regarding the

sector, so as to allow it to flourish. Certain steps have been recently taken to harness maximum

out of the sector. Kerala Industrial and Commercial Policy have given appropriate thrust on the

promotion and development of Traditional Sector industries to achieve equitable social

development and to move towards an inclusive society.

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References

1. http://www.archive.india.gov.in/knowindia/state_uts.php?id=68

2. http://commerce.nic.in/pressrelease/pressrelease_detail.asp?id=1840

3. http://texmin.nic.in/

4. http://www.coirboard.gov.in/

5. http://www.kerenvis.nic.in/Database/Industry_829.aspx

6. http://www.kerala.gov.in/index.php?option=com_content&view=article&id=3322&Itemid=2574

7. http://www.ksidc.org/userfiles/kerala_report.pdf

8. http://msme.gov.in/Modernisation_Coir_Industry.pdf

9. http://shodhganga.inflibnet.ac.in:8080/jspui/bitstream/10603/1194/8/08_chapter%201.pdf

10. http://www.surabhihandicraft.com/

11. http://www.kairalishop.com/index.php?main_page=index&cPath=86

12. http://www.hanveev.com/

13. Annual Reports, Coir Board, Government of India.

14. Kerala Economic Review, Department of Economics and Statistics, Government of Kerala.

15. INDUSTRIAL & COMMERCIAL POLICY 2011-Draft

16. G.O.(Rt)No.289/2015/ID