Where is Kerala's Coir industry heading?

Sulking Coir industry travels towards jolt

Coir industry has been one of the mainstay traditional industries which raked in foreign exchange to Kerala in abundance. During the time of the British, most of the factories were owned by them, and they produced mats and mattings and these were in abundance use in their own residences where, the first floor mostly consisted of wooden floors. A play of colours carpets gave a special artistic touch to the interiors.

Coir door mats and mattings were used immensely in the household of Europeans and the Coir mats and mattings that were manufactured by the Alleppey factories found their way to Europe. Alleppey, which was christened Venice of the East, thrived on Coir industry.

Most of the Britishers who ran the companies left India along with their counterparts in Fort Kochi(1960). They left the residue of the industry in the hands of Indian masters who were left with the opportunity of turning round an industry which was a legacy of the Britishers.

Kerala had a unique white fibre, which was famous for the mat industry. The industry lived in its primitive form, until a doyen Ravi Karunakaran, went abroad and tried to modernize some of the Coir operations. Tufted mats became a reality thanks to this far sighted man.

Kerala had the highest Coconut trees, but the productivity was steadily declining due to variety of causes including shrinkage of the area of its crop. Slowly Tamilnadu took over, with factories located in Kerala while the coconut husk was available in Tamilnadu. Kerala did not nourish de-fibering units, as a result 80% of the Coir fibre has to come from Tamilnadu. Chineese agents beseech Pollachi and began to buy from them directly through local agents. Now the fibre manufacturers owe allegiance to Chinese merchants with the result, Coir fibre does not find way to Kerala. 80% of Chinese purchase of coir fibre jacked up domestic price considerably. The option should have been to ban export of coir fibre from India. Either the authorities did not find the need nor know about the serious consequences this would put to, if the indiscriminate at throw away prices continued.

When the demand for Coir door mat and matting decreased, the local industry went for Rubber based coir mat, as architectural changes abroad, and shedding of fibre made coir mat loose its quality and market, which sealed forever, the coir mat and matting market. They were unknown victims to destroy the very product they had created! The owners felt that soaring production costs, lower productivity, overall dwindling contribution of overall value added products to country’s coir exports, has done the industry to its fall. Is not country’s coir industry sulking without markets and margins. One exporter commented dryly that revision of sourcing price 4 times over five years which witnessed increase from 15% to 30% production costs destroyed the coir industry comprehensively, speaks for itself.

The spokesmen of the body which should develop coir industry was of the view that coir competed with replacement products and synthetic products which had a lesser value. He was of the view that school bags, women bags, chapels, conference bags, gift items would bail out the industry. These items suggested by him were craft items, and their sale price would not compensate running of the huge industries for which crores of rupees have been invested. Handicraft items have their own demand but they are cheap priced products which can at best sustain a cottage industry and not the coir industry which has ploughed in more than Rs 1000 Cr in investment costs and the same cost for creating the infrastructure.

If a new paradigm shift should overtake the industry, there is need for infusion of fresh capital including FDI. The outdated rats and looms should be replaced by modern machines, and a long term solution should be put in place instead of short term programmes which will not revive the industry.New thinking entrepreneurs should be in saddle in drive a resurgent Coir industry.

If the Coir industry should be some industry manufacturing innovative products, it should get out of the Domotex mind set, and move on, and bring out innovative products which match the need of the people.  There are still people in the Coir industry who can reengineer their capacities, end products and usher in a revolution. The earlier it is done, it is better.