The Coir Industry Act 1953 established the Coir Board, a statutory organization under the Government of India, to foster and grow the coir (coconut fiber) sector in India. Operating under the Ministry of Micro, Small, and Medium Enterprises, it has its headquarters in Kochi and Alappuzha. The board aims to support the coir industry, an agro-based rural sector that employs over 700,000 people, most of whom are from economically disadvantaged social groups and rural areas. The coir industry is promoted, researched, educated, and trained in. In every region of India where there is a sizable industry presence, The Coir Board maintains regional offices. The objective is to foster the expansion and advancement of the coir sector by offering assistance to coir producers as a means of subsistence. The board has actively participated in and is in favor of the International Year of Natural Fibers. The Coir Board is in charge of 48 facilities spread across India that are dedicated to promoting the export of coir and coir products. In 2018–19, this export-oriented sector brought in over Rs. 2192 crores in foreign cash for the nation.
Indian coir industry history
It is believed that coconut was first introduced during the post-Vedic period. Various products made of coconut fibre (e.g., ropes) have been in use since ancient times. The fibre earned the name of ‘golden fibre’ and captured markets in Europe and other areas in no time.
However, it was only in 1859 when the history of coir industry in India began, when the first factory for the production of coir products was set up in Alleppey/Alappuzha.
History of Coir industry in Kerala
Coconut is one of the primary trees grown in the state of Kerala and Alappuzha is the centre of the coir industry in Kerala. The sector is regarded as the largest cottage industry in the state, with both men and women are engaged in the production of coir, though women make up the majority.
The strategic location and waterways transportation system, that is, the backwaters available in Alappuzha saw the emergence of coir industrial units. The availability of raw material and labour, encouraged Mr. James Darragh to set up the first coir factory in India. Gradually, more units emerged in other cities of Kerala such as Kollam, Kozhikode, and Kochi. The potential of coir fibre not only encouraged other European companies to set up coir units, but Indian firms and local entrepreneurs also wasted no time to leverage the opportunity.
The demand for coir products was triggered by many factors, one being the need for an economical and readily available insulate in European homes. The demand for coir as a suitable insulate resulted in the growth of the coir industry in Alappuzha and other cities in Kerala.
The coir industry in Alappuzha bloomed, and by 1967 there were over 1400 coir units in the city. Other cities, namely Karnataka, Tamil Nadu and Andhra Pradesh were also witnessing setup of new coir units.
The coir industry in Alappuzha bloomed, and by 1967 there were over 1400 coir units in the city. Other cities, namely Karnataka, Tamil Nadu and Andhra Pradesh were also witnessing setup of new coir units.
Coir Industry in India – Exports and Products
The coir industry in India is export driven. Coir pith is the largest exported coir product from India. USA, China, Netherlands, Spain, Australia are some of the top countries where coir is exported to.
In 2020-21, coir tufted mats were exported to over 77 countries with 80% of the products being exported to the USA, the UK, Germany, Italy and Netherlands. 96% of the import of coir fibre is by China. Other popular products include: Coir tiles, ropes, baskets, plates, cushions, handbags, matting for cricket pitches or roof surface cooling, fibre discs, pith, plant climbers, doormats, geo-textiles, etc.
Government initiatives for Coir Industry development
The Coir Board is the statutory body set up for the promotion and development of the coir industry. To support the growth of the sector, there are several schemes introduced by the government. The popular ones include:
- Coir Industry Technology Upgradation Scheme (CITUS)
- A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship (ASPIRE)
- Scheme of Fund for Rejuvenation of Traditional Industries (SFURTI)
Coir industry in Tamil Nadu
The state of Tamil Nadu is also known for its coir production. When it comes to brown fibre, Tamil Nadu is the largest producer. There are several coir societies set up and schemes initiated to drive employment and increase the use of husk.
Today, under the Department of Industries and Commerce, there are 64 societies operating to support the coir sector. Of that, there are 4 marketing societies at the regional level to market coir products. There are over 11,000+ members with a share capital of over ₹279.5 lakhs.
There’s also a gradual shift of coir units from Kerala to Tamil Nadu, and the coir industry in Polacchi, Salem, Trichy is thriving. This is because there’s access to cheaper raw materials, and business friendly socio-political and industrial environment. There are also several ports in the state that facilitates exports (shipping) and hence reduces logistics and transportation costs.
Role and Function of the Coir Board
The main functions of the Coir Board in India are:
- Providing guidance and advice on all matters concerning the growth and development of the coir industry in India
- Ensuring that all manufacturers of coir products and those of husks, coir fibre and yarn are adequately and fairly remunerated
- Enabling the seamless establishment of coir factories and production units
- Facilitating marketing activities for coir fibre, yarn and other related products, and coconut husk in domestic and global markets, and promote export of coir products (Also read: How to design marketing strategies for business growth)
- Following regulatory and compliance requirements by registering coir spindles and looms for manufacturing, licencing exports, and other coir manufacturers
- Conducting timely inspection of coir produce to fix grade standards
- Supporting R&D in the field and supporting institutions carrying it out
- Collecting and publishing data and statistics from relevant stakeholders on the coir industry
- Promoting coir co-operatives, licencing warehouses, and managing the stocking and sale of coir products
Problems of coir industry
- Lack of awareness among people – For example, though West Bengal has steady coconut production, roughly 20% of the coconut husk is used for coir extraction. Unawareness of its potential and use, causes people to either discard the husk or use it as fuel.
- Unregistered businesses – That is, though there are many MSME coir units, not all have registered under the Coir Board and hence unable to leverage the benefits and support of the Coir Board.
- Lack of skilled workers – Most workers in the coir sector are traditional workers with little or no knowledge of new technologies and use of machinery.
- Wages and financial challenges – Low level wages and financial problem to buy raw materials.
- Insufficient funding – Though there are schemes set up to promote and develop the coir sector, there’s the belief that other subsidies and allowances should be provided.
- Socio economic conditions – Low level of education, lack of training and development
Documents required to register with a commodity board
- Duly filled and signed application form of the respective commodity board
• Importer-Exporter Code (IEC) number
• Permanent Account Number (PAN)
• Copy of the company’s Memorandum of Association or MOA (for corporate/ institutional/ private limited/ limited companies)
• Copy of the company’s Partnership Deed (for partnership company and individual ordinary).
• Copy of the Trust’s Deed (for trusts/institutional/corporate)
• Copy of the Board Resolution or Power of Attorney issued in favour of the signing authority if the name of the signing authority is not mentioned in the IEC/MOA/Partnership Deed/Trust Deed of the company/firm/trust
• GST registration certificate
How to register with a commodity board?
Each board has its own set of rules and procedure to register and become a member. Most of the commodity boards have a form that an exporter or importer needs to fill in and submit along with other required documents and membership fees
Manufacturer/Exporter Registration: The Coir Board may require you to register as a manufacturer/exporter if you are engaged in the production or export of coir and coir-derived products.
Registration for Merchant Exporters: You can register as a merchant exporter if you are a merchant exporter who deals with coir and coir goods.
Dealer Registration: It may be necessary for dealers who deal in coir and coir products to register with the Coir Board.
Form of Application: The Coir Board’s regional offices or their official website have the appropriate registration application.
Submission of Document: Enter all relevant information in the application form. Include any other documentation that the Coir Board specifies, together with any identification or address verification and business details.
Paying the Fee: Acquire the required registration cost. Depending on what kind of registration you need, there can be different fees.
Sending in an application: Fill out the application and send it in to the Coir Board office or the assigned regional office with the required paperwork and payments.
FAQs
Is a commodity board a government body or a non-government body?
A commodity board is a statutory body formed by a specific act and falls under the administrative control of the Indian government.
Do all commodity boards come under the same ministry?
No, all commodity boards do not come under the same ministry in India. For example, the Silk Board falls under the purview of the Ministry of Textiles, while the Rubber Board falls under the control of the Ministry of Commerce and Industry.
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