The coir industry, rooted in the utilization of coconut husk fibers, stands as a significant contributor to India’s rural economy, particularly in coconut-producing states. Recognizing its potential, the Indian government, through the Coir Board, has implemented various schemes to bolster coir exporters. These initiatives aim to enhance production infrastructure, promote technological advancements, and expand market reach.

Financial and Policy Support by the Coir Board

1. Coir Udyami Yojana (CUY): This credit-linked subsidy scheme is designed to assist entrepreneurs in establishing coir units with a project cost up to ₹10 lakh, excluding one cycle of working capital. The scheme offers a 40% subsidy, 55% as a term loan from banks, and the remaining 5% as a beneficiary contribution. This structure reduces the financial burden on new entrepreneurs, encouraging the establishment of coir units across the country.

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2. Coir Vikas Yojana (CVY): CVY encompasses several sub-schemes aimed at the holistic development of the coir industry:

   • Science & Technology (S&T): Focuses on research and development to innovate and improve coir products and processes.

   • Skill Upgradation & Mahila Coir Yojana: Provides training programs to enhance the skills of coir workers, with a special emphasis on empowering women by offering spinning equipment at subsidized rates.

   • Export Market Promotion: Aims to boost the export of coir products through participation in international exhibitions, buyer-seller meets, and trade delegations.

   • Domestic Market Promotion: Seeks to increase the domestic consumption of coir products by organizing fairs, exhibitions, and publicity campaigns.

   • Development of Production Infrastructure (DPI): Provides financial assistance for setting up new coir units and modernizing existing ones. Under DPI, the Coir Board offers financial assistance at 25% of the cost of equipment, subject to a maximum of ₹6 lakh for setting up defibering units, ₹4 lakh for automatic spinning units, and ₹5 lakh for others, including coir pith processing units. For composite or multiple units, the maximum ceiling of financial assistance is ₹9 lakh. Additionally, the scheme provides up to ₹2 lakh for modernization or renovation of existing units.

3. Coir Industry Technology Upgradation Scheme (CITUS): Introduced to facilitate the establishment of state-of-the-art coir processing units, CITUS provides financial assistance to entrepreneurs for upgrading and procuring eligible plant and machinery. The primary objectives include enhancing productivity, improving raw material utilization, creating employment opportunities, and attracting new entrepreneurs to the coir sector.

4. Welfare Measures: The Coir Board implements welfare schemes like the Coir Workers Group Personal Accident Insurance Scheme, which offers financial compensation to coir workers in cases of accidental death or disability. The entire insurance premium is paid by the Coir Board, ensuring social security for the workforce.

Impact of Coir Board Initiatives

The concerted efforts of the Coir Board have yielded significant results:

• Employment Generation: The coir industry is an agro-based rural industry providing employment to over 7 lakh workers in major coconut-producing states. Notably, 80% of this workforce comprises women, highlighting the industry’s role in promoting gender equality and empowering rural women.

• Export Growth: India exports coir and coir products to more than 100 countries worldwide. In the fiscal year 2021-22, exports stood at US$526.31 million, with a quantity of 1.23 million metric tonnes, marking a 6.15% year-on-year increase. The USA emerged as the largest importer, accounting for 16.9% of the total quantity and 29.79% of the total value exported.

• Technological Advancements: Through schemes like CITUS and the S&T component of CVY, there has been a notable improvement in the quality and diversity of coir products. Innovations such as coir composites, geo-textiles, and eco-friendly alternatives have enhanced the global competitiveness of Indian coir products.

Altus Exports: Partnering with Indian Coir Manufacturers

While the Coir Board’s initiatives have laid a strong foundation, navigating the complexities of international markets requires strategic partnerships. Altus Exports stands as a bridge between Indian coir manufacturers and global buyers, offering comprehensive export solutions.

How Altus Exports Can Assist:

• Market Access: With an extensive network of trusted suppliers, manufacturers, and artisans across India, Altus Exports connects coir manufacturers to international markets, ensuring their products reach a global audience.

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• Quality Assurance: Prioritizing quality at every step, from sourcing to packaging, Altus Exports ensures that coir products meet international standards, enhancing their acceptance in foreign markets.

• Logistical Support: Handling the complexities of international shipping, Altus Exports ensures timely and efficient delivery of products, mitigating potential challenges in the supply chain.

• Regulatory Compliance: Navigating international trade regulations can be daunting. Altus Exports assists manufacturers in adhering to global compliance standards, ensuring smooth market entry and sustained operations.

Partnering with Altus Exports:

Indian coir manufacturers seeking to expand their global footprint can benefit from a partnership with Altus Exports. By collaborating, manufacturers can leverage Altus Exports’ expertise in international trade, extensive market knowledge, and commitment to quality. This partnership ensures that coir products not only reach global markets but also stand out for their excellence.