N.BHUVANESH KUMAR S.SHOBANA - icmrr.orgicmrr.org/global/pdffiles/IJFRR/f201703010.pdf · N.BHUVANESH KUMAR 1 S.SHOBANA 2 ... reducing the various problems faced by the coir industry

A STUDY ON COMMODITY WISE EXPORTS OF COIR FROM INDIA

N.BHUVANESH KUMAR 1 S.SHOBANA

2

1 Assistant Professor of NGM College, Pollachi

2 Research Student, PG Department of Commerce with International Business, NGM College,

Pollachi

ABSTRACT

India is the largest coir producer in the world accounting for more than 80 per cent of the

world production of coir fibre and which are exported to 90 countries across the world. In respect of

international trade, India and Sri Lanka are the largest exporting countries of coir fibre and related

products and the USA, the European Countries, Japan and China are the major importing countries.

The main objectives of the study is to analyse the export performance of coir products in India. The

study makes use of statistical techniques such as Percentage analysis, Trend analysis, Growth

analysis, Standard Deviation, CAGR and CV in analyzing the data for finding the result. Therefore, it

is concluded that Government of India through Coir Board aims at promoting coir industry in terms of

reducing the various problems faced by the coir industry in India and opening the gateway for future

prospects of coir industry.

Keywords: Coir , International trade, Government and production

INTRODUCTION

India is the largest coir producer in the world accounting for more than 80 per cent of the total

world production of coir fibre. Countries like India, Sri Lanka, Mexico, Vietnam, and Caribbean

Countries produce Coir. Coir‟s global production is about 350,000 tonnes. India and Sri Lanka being

the major producers of coir, account for 90 per cent of the world production.. The coir industry is

contributing significantly for creation of livelihood in major coconut growing States and union

territories of India like Kerala, Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra, Goa, Orissa,

Assam, Andaman and Nicobar, Lakshwadeep and Pondicherry. Kerala had exported 73,665 tonnes of

products valued at Rs 709.58 crore in 2015-16. In India, Allepy district in Kerala state is the coir hub

and is the major deciding factor of coir trade in India. The rate of coir is mainly fixed in other markets

of India on the basis of Allepy market. Tamil Nadu is the second largest producer of Coir fiber in the

country after Kerala.

Tamil Nadu produces 60 per cent of the total coir yarn, but only a little is being used for

making value-added products. The total area of the coconut cultivation in Tamil nadu is 3, 57, 100

hectares and production is 3243.50 million and the productivity is 9083 nuts per hectare which

surpasses the all India average productivity of 6632 nuts per hectare. There are about 1300 coir

processing units in the State out of 10000 units in the country.

In Tamilnadu, coir is mainly produced in Pollachi taluk of Coimbatore district, Kanyakumari

and Nagercoil districts due to its large area under cultivation of coconut which is due to suitable

climatic conditions available in these regions for fibre production. Besides these, coir rope making

cottage industries are available in Dindigul taluk, Palani taluk and some regions of Salem district. As

per the data available with Coir board regional office in Pollachi, there are 600 coir industries in

Pollachi taluk. The main products obtained from these industries are coir fibre (white and brown) and

coir pith blocks. . In the brown coir fiber sector, Tamil nadu occupies the first place with a production

INTERCONTINENTAL JOURNAL OF FINANCE RESEARCH REVIEWISSN:2321-0354 - ONLINE ISSN:2347-1654 - PRINT - IMPACT FACTOR:4.236VOLUME 5, ISSUE 3, MARCH 2017

An Open Access, Peer Reviewed, Refereed, Online and Print International Research Journalwww.icmrr.org 88 [email protected]

of 1.33 lakh Million Tonne per annum and contributing to 65 per cent of total production in India.

This speaks of the immense potential of the coir industry in Tamil Nadu especially in Pollachi district.

But enough studies are not available on the economics of investment in this industry and also the

export analysis of this sector.

STATEMENT OF THE PROBLEM

Export is the most important source of foreign exchange for developing countries. All

developing countries, including India, strive to increase their exports as a means for mobilizing

resource for their development plans. Indian economy is basically agrarian and hence export of

agricultural products assumes crucial significance in our export efforts. Growth in agro-exports not

only brings in additional foreign exchange for the country but also benefits a large number of people

involved in production, processing and export of such products. India is the largest producer and

consumer of coir and coir products followed by Sri Lanka. Both India and Sri Lanka account for more

than 90 percent ofthe global production. India accounts for more than two-thirds ofthe world

production of coir and coir products. It is an important cottage industry contributing significantly to

the economy of major coconut growing states and union territories i.e., Kerala, Tamilnadu, Andhra

Pradesh, Karnataka, Maharashtra, Goa, Orissa, Assam, Andaman and Nicobar, Lakshadweep and

Pondicherry.

The role of India as the largest exporter of coir products creates the following questions in the

minds of the researcher. In this process the researcher tries to explore the following questions:

How is the export performance of coir products ?

What will be the scope of export performance of coir products in future?

Whether the product wise exports are stable?

OBJECTIVES OF THE STUDY

To analyse the export performance of coir products.

To find out the various problems faced by the coir industry in India.

SCOPE OF THE STUDY

Economic development of any country largely depends upon the growth and development of

the industrial sector. Indian Coir sector contributes to employment, income, GDP, market share,

industrial production and ultimately to the country‟s economic development. Coir industry in India is

a labour -intensive industry which provides employment to more than 7,00,000 persons of whom

majority are from rural areas belonging to the economically very weaker sections of the society.

Nearly 80 percent of the coir workers are women employed in the fibre extraction and spinning

activities. India accounts for more than two-thirds of world production of coir and coir products.

Kerala is the home of the Indian coir industry, particularly white fibre accounting to 61 percent of

coconut production and over 85 percent of coir and coir products.

RESEARCH METHODOLOGY

Sample Design

The study is made for the purpose of an in depth analysis of various indicators and its effect

on export performance of Indian coir industry. The major fourteen products are selected by using

convenient sampling method.



METHOD OF DATA COLLECTION

The present study based on secondary data. The secondary data were collected from Cereals

statistics and other web based sources.

Secondary Data

Secondary Data

The study was mainly based on the secondary data from various sources, which included

Annual Reports, Yearbooks, Statistical Data publications of coir Board, Indiastat.com, Ministry of

Commerce and Industries and Coir Development Board. The study period was divided into 2002 to

2016.

TOOLS AND TECHNIQUES

Percentage Analysis

Trend Analysis

Growth Rate

Standard Deviation

CAGR

CV

PERIOD OF THE STUDY

The study covers a period of 15 years ranging from 2002 to 2017 for coir products and 10

years for country wise Export of Coir 2002 to 2017.

AREA OF THE STUDY

The study area is taken for Research in Coir Board.

LIMITATIONS OF THE STUDY

The study is limited only to exports of coir industry in India

Period of the study limited to fifteen years only.

The data used in this study are secondary in nature as given by coir.

REVIEW OF LITERATURE

J.S.Amarnath and M. Brindha (2015), “An Investment and Export Analysis of Coir Enterprise in

Tamil Nadu, India”. The main objectives of the study is to analyse the growth and instability in export

of coir products. Twenty industries were selected for primary data collection from this taluk.The

secondary information such as export of coir and related products from India both product wise and

country wise was collected for the period from 1998-2014 from the website of coir board. Exporters

can promote Value chain export of coir products as it was relatively more stable than quantity export

by adopting tertiary export with branded products.

R.Senthilkumar (2015), “Problems and prospects of coir industry”. Coir industry provides

employment opportunities and generates income to the people particularly in rural areas and thereby

promotes country‟s economy. It is a labour -intensive industry which provides employment to more

than 7,00,000 persons of whom majority are from rural areas belonging to the economically very

weaker sections of the society. Nearly 80 percent of the workers are women in the fibre extraction and



spinning sectors. India accounts for more than two-thirds of world production of coir and coir

products.

S.Mohanraj and R.Sheeba (2014), “A Study On The Future Market Potential Towards Coir

Products Export With Special Reference To Pollachi”. He also explained the reasons why consumers

are not attracted towards coir products. According to him the masses in general are not aware of the

various uses and utility of coir and products made of coir. The Government owned undertakings have

failed to generate that awareness and thereby attract consumers. Their showrooms are not well

maintained and wear a shabby outlook. They do not have sufficient varieties and designs that are

presentable.

Soundara Pandian, M. and Jagadees Pandi, S. (2004), examined the prospects and problems of

Coir Industry in the country. The major problem that had been identified in the Coir Industry was that

the Coir Industry had stuck to the traditional methods of production due to historical and sociological

reasons. The study further states that with the present method of production, the industry cannot go far

into the future. They suggested various measures for improving the Coir Industry. The measures are

upgradation of skill of workers through training for increasing productivity and income. The study

further states that the quality of Coir Yam and coir products must be improved which promotes new

coir products like geo-textiles, rubberized coir, needled belt, Coir Pith etc. Increase in export must be

done through development missions, sponsoring delegations must participate in trade fairs.

EXPORT PERFORMANCE OF COIR PRODUCTS

There are around 14 Products are being produced and exported under classification from

various parts of India. The framework of analysis includes

Growth rate

Percentage analysis

Trend analysis

Standard Deviation

CAGR

CV

List of Products used in this study

Curled Coir

Coir Fibre

Coir Rugs & Carpet

Coir Pith

Coir Rope

Coir other Sorts

Coir Yarn

Geo-Textiles

Handloom Mats

Handloom Mattings

Powerloom Mats

Powerloom Mattings

Rubberised Coir

Tufted Mats



ANALYSIS AND INTERPRETATION

Export of Coir products from India (Values Rs in Lakhs)

Year Curled Coir Coir Fibre Coir Rugs &

Carpet Coir Pith Coir Rope Coir other Sorts Coir Yarn

2002 80.6 122.15 1039.76 1014.30 108.04 106.82 3728.59

2003 80.05 103.81 932.42 1493.01 102.05 138.56 2996.76

2004 14.02 142.44 1071.36 1975.92 111.46 196.9 3498.71

2005 11.97 186.03 1002.64 3042.41 116.91 199.38 3358.16

2006 0.00 196.05 730.38 3872.60 70.41 74.65 3,019.00

2007 208.34 1075.8 328.55 5382.07 68.87 66.04 3161.57

2008 152.06 1,224.14 134.40 6384.77 139.99 57.83 2,666.90

2009 223.85 2,390.89 67.63 8462.30 164.60 19.03 1,925.92

2010 668.33 9,742.03 45.38 12347.06 165.92 28.52 2,461.21

2011 1,056.52 12,148.55 826.22 14829.02 86.72 35.84 2,685.34

2012 3,171.30 20,323.98 185.55 22150.70 340.99 68.75 3,140.70

2013 2,112.46 20,707.66 133.37 24727.61 282.41 39.33 2,387.22

2014 2,947.93 32,878.11 105.99 34173.23 390.17 163.13 2,848.26

2015 3,732.00 41,923.34 146.10 43295.24 391.92 85.79 3,000.89

2016 2,510.07 41,767.11 282.50 68808.56 396.61 94.79 2,820.82

AVERAGE 1131.3 12328.81 468.82 16797.25 195.805 91.691 2913.337

CAGR -0.9596 -1.00 2.37 -0.98 -0.703 0.118 0.297

SD 1361.0233 15574.46 407.09 19257.48 126.404 58.549 457.164

CV 120.3061 126.33 86.83 114.65 64.556 63.855 15.692



Export of Coir products from India (Values Rs in Lakhs)

Year Geo-Textiles Handloom

Mats

Handloom

Mattings

Powerloom

Mats

Powerloom

Mattings Rubberised Coir Tufted Mats

2002 780.13 15917.69 4287.86 442.72 284.04 267.24 2104.17

2003 985.23 17009.85 2921.04 458.19 226.1 350.38 4112.38

2004 1184.74 20711.79 3191.44 585.52 111.79 403.43 3434.71

2005 1049.76 22133.69 2838.66 672.13 215.44 334.67 6359.52

2006 1,140.56 25,129.27 2,334.04 931.16 138.92 340.57 9,499.05

2007 1335.22 26698.73 1913.38 1027.1 118.89 377.05 11605.96

2008 1,444.65 27,370.67 2,354.63 168.84 85.11 697.86 18,213.02

2009 1,591.05 23,537.53 1,716.56 40.06 85.09 1,174.77 22,598.15

2010 2,023.77 25,428.01 1,425.28 2.03 3.04 713.39 713.39

2011 1,823.05 1,244.72 1081.77 476.89 -17.98 21,525.80 23,968.41

2012 2,433.12 1,582.83 787.39 549.80 24.56 23,545.00 27,745.26

2013 2,628.74 1,702.76 493.01 495.02 3.15 22,810.10 33,572.91

2014 3,503.78 3,353.91 198.63 1,560.76 278.36 23,623.82 41,776.39

2015 3,270.28 1,835.28 43.93 1,410.88 225.25 23,946.91 39,725.96

2016 3,531.72 1,968.78 1,968.78 367.35 26.48 971.74 44,316.03

AVERAGE 1915.053 14375.034 1837.09 612.563 120.549 8072.18 19316.354

CAGR -0.756 6.03 1.07 0.190 8.157 -0.70 -0.942

SD 943.752 10959.22 1198.80 452.010 103.687 11007.18 15360.758

CV 49.281 76.24 65.26 73.790 86.012 136.36 79.522



INTERPRETATIONS

The above table shows the total export of fourteen coir products that is exported from our

country during 2002 to 2016. The overall export performance of Indian coir product during the study

period was in fluctuation stage due to lack of demand in International trade growth rate. The average

growth for curled coir were was around -0.9596 but Coir Fibre registered the Positive growth of -

1.00%, because of lack of Products are demand in our country. Coir also Positive negative growth

during this year‟s, while coir other sorts products shows the positive growth of annually 0.118% and

due Coir yarn shows the positive growth due to because of lack of Products are available in our

country. Handloom mar Products shows the positive growth of annually 6.03% and due Handloom

mattings shows the positive growth 1.07 due to because of lack of Products are available in our

country.

Geo textile shows the negative growth of annually -0.756% because of lack of Products

demand in our country. Powerloom mats shows the positive growth of annually 0.190% due to

because of lack of Products are available in our country. Powerloom mattings also positive growth of

annually 8.157% due to because of lack of Products are available in our country Rubberised Coir

shows negative growth of annually -0.70 and also tufted shows negative growth annually -0.942

because of lack of Products demand in our country.







INTERPRETATIONS

The above charts shows the trend value of Coir Products exported from our Country, It

clearly shows export of Curled will be in increasing trend in future years. Export of Coir Fiber will be

in increasing trend in future years. Export of Coir rugs and carpet will be in decreasing trend in future

years. Export of coir pith will be in increasing trend in future years. Export of coir rope will be in

increasing trend in future years. Export of coir other sorts will be in increasing trend in future years.

Export of coir yarn Drum Wheat will be in decreasing trend in future years. Export of geo textile

products will be in increasing trend in future years. Export of handloom mat products will be in

decreasing trend in future years. Export of handllom matting will be in decreasing trend in future

years. Export of powerloom mats will be in decreasing trend in future years. Export of tufted mats

will be in increasing trend in future years.

FINDINGS

COMMODITY WISE EXPORT

Among Fifteen years the average export among the period of study is 1131.3 lakhs, out of

Fifteen years 5 years of export are above than the average and 10 years are below than the

average. The overall compound annual growth rate for fifteen years is in negative value of -

0.9596 because of slowdown of export year by year. Trend projection shows that in future the

export of Curled coir will be good.

Among fifteen years the average export among the period of study is 12328.81 lakhs, out of

fifteen years 5 years of export are above than the average and 10 years are below than the



export of Coir Fibre will be good.


fifteen years 6 years of export are above than the average and nine years are below than the

average. The overall compound annual growth rate of Coir Rugs and Carpet products export

stood at 2.37. Through Trend analysis it is found that Coir Rugs and Carpet Export has

decreasing a trend.


fifteen years 5 years of export are above than the average and ten years are below than the



export of Coir Pith will be good.


fifteen years 5 years of export are above than the average and ten years are below than the

average. The overall compound annual growth rate of export is in negative value of -0.703

because of slowdown of export year by year. The trend projection shows that there is good

future for Coir Rope Products in the fore coming years. The result of the analysis reveals

there is a possibility for increase in export for the year 2021.



average. The overall compound annual growth rate of Coir other sorts export stood at 0.118.

The result of the analysis reveals there is a possibility for increase in export for the year 2017,

but at the same time it is reduced in 2021.





average. The overall compound annual growth rate of Coir Yarn export stood at 0.043. To

find the trend of Coir Yarn products Export has been applied from 2016 to 2020. The result of

the analysis reveals there is a possibility for increase in export for the year 2019, but at the

same time it is reduced in 2020.





export of Geo - Textiles will be good.


fifteen years 9 years of export are above than the average and six years are below than the

average. The overall compound annual growth rate of Handloom mat products export stood at

6.03.Trend analysis it is found that Handloom mat Export has decreasing a trend.


fifteen years 8 years of export are above than the average and seven years are below than the

average. The overall compound annual growth rate of Handloom Matting products export

stood at 1.07. Trend analysis it is found that Handloom Matting Export has decreasing a

trend.



average. The overall compound annual growth rate of Powerloom mat export stood at 0.190.

Trend projection shows that in future the export of Geo - Textiles will be good.

Among ten years the average export among the period of study is 120.549 lakhs, out of fifteen

years 6 years of export are above than the average and 9 years are below than the average.

The overall compound annual growth rate of Powerloom matting export stood at 8.157.

Through Trend analysis it is found that Powerloom matting Export has decreasing a trend.





export of Rubberised Coir will be good.



average.The overall compound annual growth rate for fifteen years is in negative value of -

0.942 because of slowdown of export year by yearTrend projection shows that in future the

export of Tufted mat will be good.



SUGGESTION

Government

The Government should help the coir exporters by providing the necessary infra physical

hoards required at the transition stage to the self-employed people in the industry to follow

the modem technology.

Considering the importance of improving the quality of coir and coir products, fibre cleaning

machines should be made available in the major coir producing centers.

Farmers

The schemes of cereals must be taken to all farmers to make them aware about the steps taken

by government in improving agriculture.

It is good to give more incentives to the agriculture product it will be helpful for increasing

the production on agriculture product.

Export Promotion council

The exporters whose performance is good should be identified and encouraged with Awards.

It will be good to appoint extra in production plant .It may help to avoid wastages of

production.

CONCLUSION

Even though a number of problems faced by the coir industry in India, it has various

opportunities for further growth and development purposes. Coir industry has very wider scope for

future prospects in terms of availability of coconut husks, providing employment, reducing

unemployment, generating income, alleviating of poverty, improving standard of living of the people,

creating great demand in both domestic as well as international markets, developing entrepreneurship

and promoting country‟s economy. Therefore, it is concluded that Government of India through Coir

Board aims at promoting coir industry in terms of reducing the various problems faced by the coir

industry in India and opening the gateway for future prospects of coir industry.

REFERENCE

J.S.Amarnath and M. Brindha (2015), “An Investment and Export Analysis of Coir

Enterprise in Tamil Nadu, India”, International Journal of Trend in Research and

Development, Volume 2(3), pp.191-196.

Abdur Rahman, T.S. “Coir Yam Industry Past and present, Coir News, Vol.XXVII, No. 12,

December 1999, pp.79-88.

Soundara Pandian, M. and Shiny Philip. “Coconut Waste -Husk products Industries in

Kerala”, Khadi Gramadodyag. Vol. VXXXV, No.3, December 2000, pp. 154-159.

Isabella Rani and Krishnamoorthi, S. “Rural Industrialization- the case of Coir Industry”

Journal of Rural Development” Vol. 12. No.5, September 2000, pp.523-531,

Coir Board. “A Revolution in Coir Industry, Coir News”, Vol.XXIV, February 2000, pp.24-

25.

Sreedharan, P.R. and Sreedharan, T.V. “Internal Market of Coir and Coir Products”, Coir

News, Vol.XXVII, December 1998, pp.21-23.

Baskaran Unnithan, K. “Coir Industry in India with special reference to marketing and

trade”, Coir board, Cochin, 1970, P.103.

Shiny Philip. “A Study on Manpower Resource Management in Coir Industry”, Gandhigram

Rural University, Dindugal, December 1998, pp. 15-24.



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N.BHUVANESH KUMAR S.SHOBANA - icmrr.orgicmrr.org/global/pdffiles/IJFRR/f201703010.pdf · N.BHUVANESH KUMAR 1 S.SHOBANA 2 ... reducing the various problems faced by the coir industry