The Hindu Business Line : Coir merchants’ body seeks more Govt aid

Kochi, Aug. 12 The Cochin Coir Merchants Association has said that the Kerala Government’s approach towards the coir industry was unrealistic compared with the support given by Tamil Nadu and other neighbouring States.

Addressing the 66th annual general meeting of the association here on Wednesday, Mr T.A. Kaleelur Rahman, President, said that the recently introduced Kerala Government cess on the turnover of all engaged in the business of coir in the State is a classic example of this. The impact of this multi-point levy on the export trade is rather heavy since it is in addition to the cess paid to the Centre for the Coir Board’s export promotion purposes.

New levy

The new levy adversely affects the State’s dwindling domestic trade besides being an advantage to the neighbouring States.

The association was of the view that the levy was introduced without taking into account the ground realities and it would accelerate the process of migration of Kerala-based coir units vis-À-vis the coir trade, he said.

The association was not opposed to measures for labour welfare.

Kerala, he said, enjoyed virtual monopoly in coir production, processing and trade, both internal and external, and more particularly Kochi was the hub of coir trade. However, there was a marked change in this situation.

It is a paradox that today Kerala has to depend on Tamil Nadu for almost all its requirements in coir fibre, the basic raw material for coir products. Kerala Husk Control Order, 1974, was the root cause for the present predicament of this traditional industry and trade of the State, he added.

While Kerala is lagging behind, Tamil Nadu is steadily progressing, as is evident from the export and domestic trade statistics. He pointed out that Tamil Nadu now commands around 80 per cent of the internal trade – up to coir yarn stage.

As regards exports, Tamil Nadu is now in an enviable position what with a monopolistic status in the case of coir pith, curled coir and coir fibre.

Coir fibre export

Likewise, the increasing trend in the export of coir fibre to China may result in serious problems to the indigenous industry.

This has already pushed up the prices of coir fibre to abnormal levels. This is a matter to be looked into by the Central Government and the Coir Board.

Mr Anilkumar N. Prabhu, President, Indian Chamber of Commerce and Industry, was the Chief Guest on the occasion.