Rise In Raw Material Trade Impacts Coir Export.

Coir exports during the current financial year have declined in volume compared to last year due to increasing exports of coir raw materials instead of finished products.

Coir Board sources said that the value of exports during April-December of the current fiscal lowered by 6% at Rs 521.06 crore against Rs 555.04 crore during the same period of last fiscal. Interestingly, volume of exports for the nine-month period is higher by 11%. India exported 200.021 tonne of coir and coir products during the nine-month period as against 1,79,667 tonne during the same period of last fiscal.

The Coir Board has fixed an export target of Rs 1,000 crore for 2010-11, but feels that raw material shortage could impact exports. During the last fiscal coir exports touched 2,94,508.05 tonne valued at Rs 804 crore, registering a growth of 47.31% in terms of volume and 25.64 % in value terms.

During the nine-month period, coir rugs, curled coir and mats have registered increase in volume and value, board sources said. Rubberized coir mats and coir geo-textiles have declined in both volume and value during the period. Export of coir mats has decline by 5 % in volume and 10% in value for the period.

The disturbing factor is that the exports of raw materials like fibre, pith and rope are continuously on the increase creating problems for the domestic industry. Coir fibre exports during the financial year stands at 37,035 tonne valued at Rs 71.09, which is higher by 59% in volume and 51 % in value.

Huge quantities of coconut husk available in the Malabar Region, which accounted for 60% of the state's coconut production, was presently being procured by neighboring Tamil Nadu which exported substantial quantities of fibre and coir pith, particularly to China, resulting in cost escalation, sources said. The industry is facing shortage of raw material and skilled labour and the incremental cost increase on inputs is eroding the competitiveness of Indian products, Coir Board sources said. Coir industry in Kerala needs around two lakh tonne of coir fibre annually as against production of 50,000 tonne within the state.

Source : news.in.msn.com