Traditional sector in Kerala:

An overview
Coir, Handloom & Handicrafts

Geo Jose

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.

1
2
3
4
5
6

Geographic indicator

Traditional sector

Aranmula Kannadi
Alleppey Coir
Balaramapuram Sarees and Fine Cotton Fabrics
Kasaragod Sarees
Kuthampully Saree
Chendamangalam Dhoties & Set Mundu

Handicraft
Coir
Handloom
Handloom
Handloom
Handloom

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.

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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 Industry

Kerala 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 cooperatives 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.
Table 1
Performance in Recent Years- SURABHI
Participation in Trade fairs/Exhibitions
YEAR

No. of
Societies

Total
Assistance by Govt Turnover
employment
(` in lakh)
(` in lakh)
(nos)

Profit/
Loss
(` in lakh)

No of
Expenditure
Profit/Loss
fairs/Exhibit incurred
(` in lakh)
ions
(` in lakh)

2007-2008

103

20000

26.95

379.9

-33.25

14.29

11.91(P)

2008-2009

103

10000

47.48

280.1

-48.47

6.72

2.35(P)

2009-2010

103

13000

25

250.52

-62.34

11.13

2.84(P)

2010-2011

46

13000

30.98

272.53

-51.52

20.15

1.73(L)

2011-2012

46

12000

25

274.11

-34.7

12.86

0.95(P)

2012-2013

46

30000

20

293.74

-33.86

16.73

4.52(P)

2013-2014

46

30000

100

337.17

-6.12

10

69.25

18.18(P)

Source: SURABHI, Kerala

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.

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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.

Table 2
Performance in Recent Years
Participation in Trade fairs/ Exhibitions
YEAR

Total
employment
(nos)

1
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014

2
142
136
131
124
113
96
95

Assistance by
Govt (` in
lakhs)

Turnover Profit/ Loss

Expend
(` in lakhs) (` in lakhs) No of Fairs/
iture
Exhib itions incurre d (`
in lakhs)

3
4
5
6
27.5
1112.4
-182.98
22
115.2
1136.16
-114.37
21
322
1282.63
-79
29
121.03
1488.81
-95.36
25
75
1530
-195.51
24
560
1709.15
-151.31
49
96
1565.97
-223.55
32
Source: Handicrafts Develiopment Corporation, Kerala

7
32.12
41.83
35.7
51.54
46.37
94.78
65.52

Profit/L oss
(` in lakhs)
8
8.52
6.08
10.08
11.16
13.52(p)
26.30(p)
19.80(p)

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

SL No
1
2
3
4

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Activity
Renovation of work sheds
Working capital Grant
Design and technology up-gradation scheme
Skill up-gradation training
Total

Amount in lakhs
` 200
` 50
` 30
` 40
` 320

Renovation of showrooms, completion of CDC building and computerisation

SL No
1
2
3
4
5

Activity
Exhibitions
Renovation of showrooms
Publicity
Completion of CDC building
Computerisation
Total

Amount in lakhs
` 50
` 70
` 20
` 50
` 10
`200

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 cooperatives 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

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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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Table 3
Number of Handloom Co-Operative Societies in the state
Sl
No.

Item

Factory type:

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

Working

109

110

108

108

102

107

Dormant

48

40

41

39

36

37

under liquidation

17

15

16

17

13

27

176

167

167

166

153

171

Not started
working
Total (a)
Cottage type:

4
b
1

Working

260

260

260

259

329

319

Dormant

112

117

117

113

71

68

under liquidation

40

41

41

43

101

104

11

11

11

10

10

43

423
599

429
596

429
596

425
591

511
664

534
705

Not started
working
Total (b)
Total 6 (a+b)

Source: Directorate of Handloom & Textiles

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

6|Page

Table 4
Assistance extended by way of Loan and grant for the Development of
Handloom Industry (` lakh)
Particulars
a

2012-13

2013-14

67.15

55.82

318.53

Loan

State Government

ii

Central Government

iii

N.C.D.C., NABARD, HUDCO

64.97

17.03

Total(a)

132.12

391.38
1581.19

Grant

State Government

1475.15

ii

Central Government

142.35

43.37

iii

N.C.D.C., NABARD, HUDCO

Total(b)
Amount spent as Rebateon the sale of
Handloom cloth:
State Government (10%)

52.92
1670.42

123.15
1747.71

372.17

315.97

Central Government(20%)
(MDA-50% CSS)

128.95

12.6

Total(c)

501.12

328.57

c
i
ii

Source: Directorate of Handloom & Textiles

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.

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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.

Table 5
Production and Productivity under Handloom Industry in Kerala 2010-11 to 2013-14
Sl
.No.

Item

Co-Operative Sector

Number of looms

2010-11

2011-12

2012-13

2013-14

33653

30478

29761

21898

ii

Production of Handloom cloth (M.M.)

25.55

26.88

28.37

33.32

iii

Value of Production (Rs.in crores)

182.36

193.62

214.1

204.71

iv

Productivity (M/L/A)

759.12

881.98

953.19

1521.55

No.of weavers

50717

49930

50433

20584

Employment generated (mandays in

lakhs)
No.of women employed
Corporate/unorganised/private
sector

91.58

85.3

101.6

89.34

20039

20784

20854

12688

Number of looms

6500

6500

6380

510

vi
vii
2

ii

Production of Handloom cloth (M.M.)

1.13

1.01

1.08

0.24

iii

Value of Production (`.crores)

8.6

8.52

8.77

5.86

iv
v

173.85
1669

155.36
1660

169.28
738

470.59
646

5.07

5.02

4.26

2.85

870

848

580

373

i
ii

Productivity (M/L/A)
No.of weavers
Employment generated (mandays in
lakhs)
No.of women employed
Total: Co-operative, Corporate and
unorganised sector
Number of looms
Production of Handloom cloth (M.M.)

40153
26.68

36978
27.89

36141
29.45

22408
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

1992.14

No.of weavers

52386

51590

51171

21230

vi

Employment generated (man days in

lakhs)

96.65

90.32

105.86

92.19

vii

No.of women employed

20909

21632

21434

13061

vi
vii
3

Source: Directorate of Handloom & Textiles

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

8|Page

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 cooperative 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

11 | P a g e

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 6
Export 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

Nil

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

10.42
Nil
117
244

33.61
25.49
58.29
72.24

17.75
30.39
150.52
29.67

Source : Directorate of Coir Development, Thiruvanathapuram

300
250
200

Kerala state coir

coporation

150

Foam Mattings India

limited

100

Coirfed

50
0
2009-10 2010-11 2011-12 2012-13 2013-14

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

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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 7
Coir Co-operative Societies in Kerala
SL No:

Type of Society

1
a)
b)
c)
2
a)
b)
c)
3
a)
b)
c)
4
a)
b)
c)
5
a)
b)
c)
6
7
a)
b)
c)
8
a)
b)
c)
d)

No. of
Societies as
on 31.3.2013

Primary Co-operative Societies (Yarn Sector)

Working
382
New Societies which have not started working
106
Dormant Societies
93
Total (1)
581
Manifacturing Societies ( Mats & Mattings)
Working (started production)
31
New Societies which have not started working
3
Dormant Societies
17
Total (2)
51
Small Scale Producers Co-operative Societies
Working
53
New Societies which have not started working
3
Dormant Societies
6
Total (3)
62
Husk Procurement and distribution societies
Working
1
New Societies which have not started working
Dormant Societies
Total (4)
1
Fibre Societies (DF mill Societies)
Working
24
New Societies which have not started working
12
Dormant Societies
36
Total (5)
72
Co-operative Coir Marketing Federation
1
ICDP Societies
Working
New Societies which have not started working
Dormant Societies
Total (7)
Total No. of Co-operative Societies
Working
491
New Societies which have not started working
124
Dormant Societies
152
Societies under liquidation
187
Total (8)

954

No. of
Societies as
on 31.3.2014
385
64
94
543
31
3
16
50
54
4
5
63
1

1
27
28
25
80
1
19
52
71
517
151
140
137
945

Source : 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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Conclusion
An 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

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