The coir industry, rooted in the utilization of coconut husk fibers, stands as a significant contributor to India’s rural economy and export portfolio. To bolster this sector, the Coir Board of India has implemented a range of financial incentives, subsidies, and tax benefits aimed at empowering coir exporters. This comprehensive support system not only enhances the global competitiveness of Indian coir products but also ensures sustainable growth for exporters.

Financial Incentives and Subsidies

The Coir Board administers several schemes under the Coir Vikas Yojana (CVY) to promote the coir industry. These schemes are designed to provide financial assistance across various facets of coir production and export.

1. Coir Udyami Yojana (CUY): This scheme offers financial support for setting up coir units with a project cost up to ₹10 lakh. The assistance includes 40% of the project cost as a government subsidy, 55% as a bank loan, and the remaining 5% as a beneficiary contribution. This structure facilitates the establishment of new coir manufacturing units, thereby enhancing production capacity.

2. Mahila Coir Yojana (MCY): Aimed at empowering rural women artisans, the MCY provides training and distribution of motorized ratts at subsidized rates. Beneficiaries receive a 75% subsidy on the cost of motorized ratts, subject to a maximum of ₹7,500. This initiative not only promotes self-employment among women but also increases the quality and quantity of coir yarn production.

3. Export Market Promotion (EMP): To enhance the global presence of Indian coir products, the Coir Board organizes participation in international trade fairs, buyer-seller meets, and trade delegations. Exporters are provided financial assistance to cover expenses related to these promotional activities, thereby facilitating market expansion and increased export orders.

Tax Benefits

The Government of India offers various tax incentives to coir exporters to enhance their competitiveness in the global market.

1. Remission of Duties and Taxes on Exported Products (RoDTEP): Introduced to replace the Merchandise Exports from India Scheme (MEIS), RoDTEP refunds embedded duties and taxes that are not reimbursed under other schemes. This ensures that exporters receive refunds on taxes incurred during production, thereby reducing the overall cost and making Indian coir products more price-competitive internationally.

2. Advance Authorization Scheme: This scheme allows duty-free import of inputs that are physically incorporated into export products. Coir exporters can import necessary raw materials without paying customs duties, provided they fulfill the export obligation within a specified timeframe. This reduces the input cost for exporters, enhancing profitability.

Impact on Coir Exports

The comprehensive support from the Coir Board and the government has significantly bolstered India’s coir exports. According to the Coir Board, the export of coir and coir products reached a record high, with a substantial increase in both volume and value. This growth underscores the effectiveness of the implemented schemes and the rising global demand for eco-friendly products.

Altus Exports: Partnering with Indian Manufacturers

While government initiatives provide a solid foundation, navigating the complexities of international trade requires expertise and strategic partnerships. Altus Exports stands as a pivotal ally for Indian coir manufacturers aiming to expand their global footprint.

At Altus Exports, we specialize in bridging the gap between Indian manufacturers and international markets. Our extensive network of trusted suppliers, manufacturers, and artisans across India enables us to offer a diverse range of high-quality products. We prioritize quality at every step, from sourcing to packaging, ensuring that our partners’ products meet the highest international standards.

Our efficient supply chain management allows us to offer premium products at competitive prices, delivering exceptional value to our clients. With extensive international trade experience, we export to numerous countries, ensuring seamless transactions and regulatory compliance.

Indian coir manufacturers can partner with us to leverage our expertise in global markets. By collaborating with Altus Exports, manufacturers can focus on their core competencies of production, while we handle the complexities of export logistics, market entry strategies, and compliance with international trade regulations.

To explore partnership opportunities, manufacturers can visit our Manufacturer Partnership page. Here, detailed information is available on how we can work together to bring the richness and diversity of Indian coir products to the global stage.

Conclusion

The Coir Board’s financial incentives, subsidies, and tax benefits have been instrumental in empowering coir exporters, leading to significant growth in exports. However, to fully capitalize on these opportunities, strategic partnerships are essential. Altus Exports offers Indian coir manufacturers a pathway to successfully navigate international markets, ensuring that the excellence of Indian coir products is recognized and appreciated worldwide.