International Journal of Trend in Scientific

Research and Development (IJTSRD)

International Open Access Journal
ISSN No: 2456 - 6470 | www.ijtsrd.com | Volume - 2 | Issue – 1

Problems Faced by Coir

Manufacturers and Exporters in Pollachi Taluk

Dr. L. Rajakumar
Assistant Professor
VLB Janakiammal College of Arts and
nd Science, Coimbatore, India

ABSTRACT
The Indian Coir Products are in great demand in the material in the mansions of the rich and as an article of
international market because of their special attributes utility in the huts of the poor. It thus caters to the needs
like fitness, price, craftsmanship, quality, attractiveness of all classes of the society. Coir industry is one of the
and Eco-friendly,
friendly, biodegradable renewable natural traditional agro- based cottage industries concentrated
resources, non-pollutant, usage of thee product is up to in the coconut producing states in i the country. Coir
the expected level when compared to plastic and other industry in India has a very long and glorious past. It
environment pollutant item. But, in reality the coir continues to play a prominent role in the national
industry has stuck to traditional methods of production economy of India. "Return to nature" concept has now
for historical and sociological reasons. The marketing brought intensive affinity for coir and coir products all
efforts of coir exporters
orters is more or less confined to the over the world. Indiadia is one of the top producers and
age old conventional pattern and have not been very exporters of coir in international market. The Indian
successful to create a niche for this product in the target Coir Products are in great demand in the international
market. It is a fact that the lack of overseas market market because of their special attributes like fitness,
intelligence especially for favourite designs, colo colours price, craftsmanship, quality, attractiveness and Eco-
etc., and insufficient marketing efforts are serious friendly,
riendly, biodegradable renewable natural resources,
impediments to increase coir exports. This research non-pollutant,
pollutant, usage of the product is up to the
article aims to measure the nature of problems faced by expected level when compared to plastic and other
the exporters of coir in Pollachi taluk.The study environment pollutant item.
observed that majority of the coir manufamanufactures and
exporters hailing in Pollachi taluk are very small Coir Export in India fetched around Rs.1500
Rs crores in
entrepreneurs, mostly business is owned and operated 2015-16 as against Rs.1052
1052 crore in 2014-15. There is a
by sole proprietor, with a minimum number of huge market for Indian Coir products abroad and at
employees, with less business operation experiences present exports are being done to more than 112
and with a small capital investment of `.25 25 Lakhs. With countries. More than 40per cent of the production is
the smallness of business size most of the entrepreneurs being exported. In 2016 domestic sales was valued at
and factors face issues like: poor assess to expert Rs 3000 crores. The
he exports had grown by 30per cent
consultation services, issues of delayed payment by the in value and 28per cent during this financial year. Coir
foreign buyers, difficulties in availing government exports from India had maintained a continuous growth
assistance in overcoming export barriers and high cost trajectory even during the global economic crisis. Coir
of capital to finance exports operations etc. Board has targeted to double the export of coir and coir
co
products from India within the next three years. During
INTRODUCTION 2015-16,
16, the growth percentage of exports, compared
to the previous year, was 20 in terms of quantity and
Coir enjoys its dignified status as a fine decorative 16.6 in terms of value. During 2016-17
2016 the growth

@ IJTSRD | Available Online @ www.ijtsrd.com | Volume – 2 | Issue – 1 | Nov-Dec

Dec 2017 Page: 804
 International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470

percentage was increased to 27.3 in terms of quantity only 40 per cent of the indigenous production of coir
and 20 in terms of value. There has been an increasing door mat, mattings etc., is estimated to be consumed
trend in the exports of coir and coir products year to within the country.
year, it is expected that the trend will continue during
the coming years also.For the Indian coir exports the Because of the emergence of plastic fiber, the substitute
US is the largest market accounting for 37per cent. The for fiber, the demand for coir fiber declining day by
domestic market for coir products is currently estimated day. In spite of positive growth of coir products from
at Rs 2000 crore and this is expected to grow to Rs India a general lowering trend has been noticed in the
3500 crore by 2017. The Coir Board has earmarked international market in the demand for coir products
Rs.4.59 crore financial assistance in 2012-13 for the vis-a-vis other competing products. The reasons for this
development of coir industry in various states. trend could be attributed to the ever increasing shift
competition synthetic floor coverings and cheaper
Nature of Problems Faced by Coir Industry in India natural substitutes like gross products backed by
aggressive marketing efforts. The marketing efforts of
The coir industry has stuck to traditional methods of coir exporters is more or less confined to the age old
production for historical and sociological reasons. The conventional pattern and have not been very successful
industry cannot go on far into the future, with its to create a niche for this product in the target market. It
present method of production, mechanisation of de- is a fact that the lack of overseas market intelligence
fibring and spinning sectors would displace labour in especially for favourite designs, colours etc., and
large numbers. Inadequacy of raw material is one insufficient marketing efforts are serious impediments
reason for the decrease in employment and the high to increase coir exports. The traditional coir items such
cost raw material in the cost production. Primary coir is as coir mats, mattings, rugs carpets etc. have not shown
the large employer unit but mostly underemployment, appreciable growth of exports. The high tariff rate for
part-time employment and secondary employment. coir existing in various importing countries is one of
With below par sustenance wages conditions of work to the main hurdles for promoting coir and coir products.
a large mass of unorganised casual workers. The The tariff regime prevailing now varies between 2 to 30
entrepreneurial initiative in coir is essentially per cent in various countries according to the
individualistic with a property orientation; even there information collected by the coir board. Apart from the
are some corporate facades. The role of professionalism tariff, very often several non-tariff barriers are
is somewhat restrained by the very definition of trade impeding the growth of export market for coir products.
structure large business house of a country have chosen They include allegations of child labour, restrictive
to keep away from coir and again, expatriate interest banking facilities, import quota restriction, anti-
from consuming countries and multinational have been dumping measure etc.
kept away.
Economic Significance of Pollachi and the Nature of
The organisation of overall industry is fragile. The Problems Faced by the Coir Manufactures and
weakest link in its economic strength is a discarded Exporters
waste husk becoming the primary raw material, lack of
integration with the effective farming lobby of growers India accounts for more than two-thirds of the world
of coconuts, absence of large corporate and production of coir and coir products. Kerala is the home
professionalism – absence of even remote nexus with of Indian coir industry, particularly white fibre,
product sector. These factors are inescapable realities accounting for 61 percent of coconut production and
not readily conducive for exponential forward in over 85 per cent of coir products. The Coir industry in
growth in volume: value, product profile and quality of Kerala is totally depending on Tamil Nadu in terms of
coir industry. The growth of coir in quantity or quality coir fibre supply. Only a very little quantity fibre is
terms in its traditional setting is not optimistically being produced in Kerala and Kerala is procuring
promising while the economic disabilities of the approximate 90per cent of coir fibre from Tamil Nadu
commodities and the weakest of the trade and explicit of total consumption in the state. Pollachi, located
coir areas, the social issues of the coir workers are 40km from Coimbatore, has 6.30cr coconut trees,
compounding the complex problems. When it is take cultivated across 30,000 acres, which yield 10 million
into account the market, the domestic market within the coconuts daily. Each coir manufacturing factory
country largely by private traders. The internal requires about 50,000 coconut husks daily. Pollachi
consumption coir yarn in India is about 85 per cent and saw a boom in the coir industry. The number of

@ IJTSRD | Available Online @ www.ijtsrd.com | Volume – 2 | Issue – 1 | Nov-Dec 2017 Page: 805
 International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470
2456

factories doubled, increasing the cost of raw material. productt and marketing there are several potentials
Since 2014, the Coimbatore district has been witnessing which manufactures have not been able to tap. Since
drought, which has resulted in reduction of coconut the manufacturers and exporters faces certain issues
production in Pollachi area, this situation in turn pertaining to their geographical area, which differs
resulted in increasing
easing the raw material cost i.e., the cost from other regions where coir products are produced
of coconut husk. With the industry slowing down, and exported.
thousands who were rendered jobless have either
migrated to Tirupur garment factories or work as Aims of the Study
labourers in various developing resorts in
 To assess the business profile of the exporters of
Pollachi.Moreover, the coir fiber industry in Pollachi
coir in Pollachi taluk.
has seen a 50 per cent decline in domestic supply and a
30 per cent reduction in exports leaving thousands of  To measure the nature of problems faced by the
people jobless. As per data available with various coir exporters of coir in Pollachi taluk.
manufacturing associations in the district, the number
of units has reduced by 40 per cent over the last one Research Methodology
year, due to various reasons including a spike in This study is focused on the coir firms operating in
manufacturing costs and the availability of cheaper Pollachi taluk of Coimbatore district.Current
district. empirical
fiber from Indonesia and Philippines. study is both explorative and descriptive in nature.
Questionnaire was used to collect the primary data from
Statement of Problem
the selected respondents for the analysis.
analysis Three hundred
The Development of Coir Industry has taken place in coir manufacturing and d exporting firms operating
areas where there is concentration of coconut around Pollachi was chosen as the sample population.
cultivation and availability of coconut husks. It is an Coir industry is a major contributor to the economy of
undeniable fact that the steady increase in the export Pollachi, this industry give huge opportunities to
indicates a fast expanding export market for coir. The employment of local residents and outsourcing of small
marketing efforts of coir manufacturesures and exporters works to various
us other industries.
are more or less confined to the age old conventional
pattern and have not been very successful to create a Data Analysis and Findings
niche for this product in the target market. It is a fact Out of 300 respondents’ surveyed 71.33 per cent of coir
that the lack of overseas market intelligence especially firms were owned as sole proprietorship,
proprietorship 15.33 per cent
for favourite designs, colours etc., and insufficient of respondents’ form a part of o coir manufacturing
marketing efforts are serious impediments to increase companies and rests of 13.33 per cent of respondents’
re
coir exports. Similarly, it has been understood from the are running firms i.e., a commercial partnership of two
elaborate literature reviews that though India has or more persons, especially when unincorporated.
evolved several modern methods both in terms of

EXHIBIT: 1
OWNERSHIP PATTERN OF THE COIR FIRMS

@ IJTSRD | Available Online @ www.ijtsrd.com | Volume – 2 | Issue – 1 | Nov-Dec

Dec 2017 Page: 806
 International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470
2456

Itt has been 46.33 per cent of respondents’ are running EXHIBIT:
EXHIBIT 4
the firm for the past 5 years or less than that. Similarly MONTHLY
NTHLY TURNOVER
39.67 per cent of sample populations’ are engaged in
coir manufacturing business for the past 10 years or
more than that and 14 per cent of coir manufacturers’
have said that they are running the firm for the past 55-
10 years.
EXHIBIT: 2
AGE OF CONCERN

The study findings reveal that 61.33 per cent of coir

manufacturers’ have hired only 10 employees in their
organization. Followed by, 29.33 per cent of
respondents’ organization constitutes of 10-20 10
members. On the other hand, 9.34 per cent ce of
manufacturers’ have opined that their organization
consists of more than 20 workers.
Itt has been inferred that, 46.33 per cent of the coir
manufacturers’ have invested around `.50 .50 Lakhs as the EXHIBIT:
EXHIBIT 5
capital to start the business. Batch of 39.67 per cent of EMPLOYEE STRENGTH
respondents’ have invested a capital of `.25
.25 Lakhs and
14 per cent of sample populations’ have invested a
capital of in their business.
EXHIBIT: 3
CAPITAL INVESTMENTS

60 39.67 46.33
40 14
Mean Score

20
0
Upto Rs.25 Rs.25 to Above Rs.50
Lakhs Rs.50 Lakhs Lakhs
Capital Investments

Out of 300 respondents’ surveyed, 57.33 per cent of the Among 300 coir manufacturers’ surveyed, almost i.e.,
firms yield turnover of `.5 to `.15
.15 lakhs per month. 97.40per
per cent of coir manufacturers’ produce only one
Similarly 39.34
34 per cent of the coir manufacturers’ product (48.70 per cent) orr otherwise 1 to 5 products
make a turnover of `.5
.5 lakhs and 2.33 per cent make a (48.70 per cent) in their firms. Subsequently it has been
turnover of`.15 to `.25
.25 lakhs per month. And the rests observed that 2.60 per cent of coir manufacturing in
of 1 per cent of sample populations’ yield turnover of PollachiTaluk produces more than 5 types of products
`.35 lakhs or more than that per month. using coir products.

@ IJTSRD | Available Online @ www.ijtsrd.com | Volume – 2 | Issue – 1 | Nov-Dec

Dec 2017 Page: 807
 International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470
2456

EXHIBIT: 6
VARIETY OF PRODUCTS MANUFACTURE

It is evident from the above table that, majority i.e., 93.67 per cent of coir manufactures’ always target on the
International market to trade their products. On the contrary, 6.33 per cent of manufacturers’ are selling their
products in the domestic market.

EXHIBIT: 7
TARGETED MARKET

This sub section of the study analyses about the coir manufacturers’ level of perception on nature of problems
encountered.

@ IJTSRD | Available Online @ www.ijtsrd.com | Volume – 2 | Issue – 1 | Nov-Dec

Dec 2017 Page: 808
 International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470

TABLE: 1
PROBLEMS FACED BY COIR INDUSTRY IN EXPORTING GOODS
Problems Sum Mean Rank
Lack of Export Marketing Research 1241 4.14 6
Lack of Competitive Price 1177 3.92 16
Lack of Experts in Export Consulting 1362 4.54 1
Payment Delays From Overseas Buyers and Distributors 1268 4.23 2
Ineffective National Export Promotion Program 1212 4.04 13
Foreign Government Rules and Regulation 1234 4.11 9
Exchange Rate Fluctuation 1216 4.05 12
Lack of Government Assistance in Overcoming Export Barriers 1256 4.19 3
Poor Product Design and Style for Export Markets 1244 4.15 5
High Cost of Capital to Finance Exports 1250 4.17 4
Un-availability of Technology 1223 4.08 10
Lack of Financing Assistance 1240 4.13 7
Uncertain Orders/No Regular Orders 1225 4.08 10
Power Fluctuation 1237 4.12 8
Increasing in Labour Cost 1210 4.03 14
Non-Availability of Regular Supply of Raw Materials 1183 3.94 15
Lack of Expert in Export Consultancy 1168 3.89 17
Source: Primary Data
Conclusion
Majority of the coir manufactures and exporter of coir
product functioning in Pollachi claim that they lack The study observed that majority of the coir
experts support for right and valuable consultation, manufactures and exporters hailing in Pollachi taluk are
which they consider as the major drawback for their very small entrepreneurs, mostly business is owned
promotion and development, this variable is ranked in and operated by sole proprietor, with a minimum
first place with the mean score of 4.54. Subsequently it number of employees, with less business operation
has been inferred that the sample subjects’ are affected experiences and with a small capital investment of `.25
by the payment delays from overseas buyers and Lakhs. With the smallness of business size most of the
distributors, lack of government assistance in entrepreneurs and factors face issues like: poor assess
overcoming export barriers and high cost of capital to to expert consultation services, issues of delayed
finance exports. These variables are ranked in second, payment by the foreign buyers, difficulties in availing
third and fourth position with an average score of 4.23, government assistance in overcoming export barriers
4.19 and 4.17, respectively. Similarly the and high cost of capital to finance exports operations
manufacturers’ in Coir industry have opined that they etc.
face various problems like poor product design & style
The Government Agencies like policy makers, Coir
for export markets, lack of export marketing research,
Board of India and other voluntary organisation have to
lack of financing assistance, power fluctuation, foreign
realise the fact that the golden fiber coir has higher
government rules and regulation, uncertain orders/no
market demand in various world countries. As coir
regular orders and un-availability of technology in
products are considered as substitution for the
running the business. Followed by, the respondents’
protecting mother earth from various natural hazards
have said that they are affected by the barriers like
and coir product can be easily substituted many of
exchange rate fluctuation, ineffective national export
modern day product like: floor mats, doors, separators,
promotion program, increasing in labour cost, non-
car and household decorative products, coir can be used
availability of regular supply of raw materials, lack of
in prevention of soil erosion, used as mud for
competitive price and lack of expert in export
cultivation of crops, flowers and plants etc. The
consultancy in the Coir manufacturing industry.
Government Agencies like policy makers, Coir Board
of India and other voluntary organisation have to
provide required assistance and support to the small
manufacturers and exporters of coir product both to
@ IJTSRD | Available Online @ www.ijtsrd.com | Volume – 2 | Issue – 1 | Nov-Dec 2017 Page: 809
 International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470

earn more foreign exchanges, to retain Indian Volume.No.1, issue.No.6, ISSN 2231-4245,
competitive position in coir exports and also for the PP:109-111, October.
retaining of the entrepreneurs in the business in long
3) The fiber of Pollachi's coir industry imperilled, The
run. Times of India,8th June, 2015.
References 4) Executive Summary: Status of Coir Industries in
India (2016), Coir Board, Cochin,
1) Jose .V. S (2002), A Study of Coir Vyavasaya Co- oirboard.gov.in/wp-
Operative Societies in Kerala performance, content/uploads/2016/09/Executive-Summary-
Problems and Prospects,Ph.D thesis submitted to Survey-of-Coir-Industries-in-India.pdf
the Cochin university of science and technology for
the award of the degree of Doctor of philosophy in 5) Indian Coir Industry at a Glance in 2015-16,
commerce (Faculty of Social Sciences), http://www.indianmirror.com/indian-
Department of Applied Economics, Cochin industries/2016/coir-2016.html
University of Science and Technology, Cochin. 6) ShriGiriraj Singh (2017), Minister of State for
2) Nagaraja.G (2011)Export of coir and coir products MSME,RajyaSabha on 26.07.2017,
from India: An analysis, International Journal of http://pib.nic.in/newsite/PrintRelease.aspx?relid=16
Research in Commerce, it & Management, 9026

@ IJTSRD | Available Online @ www.ijtsrd.com | Volume – 2 | Issue – 1 | Nov-Dec 2017 Page: 810