A severe shortage of water, affecting coconut farms in Tamil Nadu, Kerala and Karnataka, is forcing the coir industry to look at sourcing husks from Andaman and Nicobar Islands and Lakshadweep.
“Kerala and Tamil Nadu together produced over 9,000 million nuts in 2014-2015. But, the yield has dropped this year,” said S. Mahesh Kumar, president of Coir Pith and Allied Products Manufacturers and Exporters Association. “There is a shortage in water availability for processing the coir fibre. The industry is in trouble.”
The normal yield is 120 nuts a tree, Mr. Kumar said. This year, it is just 60 to 70 nuts. January to March is the peak season for coconut production. About 700 coir units in Tamil Nadu and Kerala, extract fibre, make coir pith and value-added products. On an average, the processing capacity of one unit is 50,000 husks a day. “Just 50% of the units, especially those in Tamil Nadu, are operating and that too just at about 60 % capacity.”
A couple of years ago when there was a similar situation, some units imported husk from Sri Lanka. Now, a few companies are buying husk from Karnataka and some more units are studying the possibility of jointly sourcing it from Andaman and Nicobar, he said.
Fibre stock
Chairman of Coir Board, C.P. Radhakrishnan, said though coconut output was affected, the industry has fibre stock.
The fibre production was high last year and that is helping the industry now. However, the board is studying various possibilities to meet the need for husks. “There is the possibility of bringing husk from Andaman and Nicobar or Lakshadweep. But, transport cost is high and coconut collection should be by the local people. We have held meetings in this regard. We need to buy coconuts from them and extract the fibre here. We are also looking at possibilities of importing coconuts from Indonesia or African countries,” Mr. Radhakrishnan said.
On the other hand, with increasing awareness of environment-friendly products, the demand for coir-based items is on the rise in the international and domestic markets.
Coir product exports in 2015-2016 amounted to ₹1,901 crore, and in 2016-2017 it is expected to have crossed ₹2,100 crore. “We are looking at reaching exports of ₹15,000 crore or more in another seven to eight years,” he said. Over 50% of the exports is coir pith and the main exports are to the U.S. In the last few years, demand for floor coverings, mats and geotextiles have improved, he said.
Indonesia, Vietnam
Mr. Kumar says Indian exporters face competition from countries such as Indonesia, Vietnam and Sri Lanka on the price front and the demand is growing for ready-to-use coir pith products.
The potential for coir products is high in the domestic market and it is growing at nearly 25 %, Mr. Kumar said.
Several private companies are selling coir products online. In the domestic market, the demand is more for mats and mattress. “It is high time the industry focuses on value addition for the domestic market too,” he said.
