Financial Daily from THE HINDU group of publications
Thursday, May 16, 2002
Financial Daily from THE HINDU group of publications Thursday, May 16, 2002 |
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Agri-Biz & Commodities
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Coir Coir fibre extraction units fighting for survival L.N. Revathy
COIMBATORE, May 15 COIR fibre extracting units in and around Tiruchi are in dire straits. As many as 12 small and tiny units have already stopped functioning for want of quality raw material and due to lack of Governmental support. These units, located on the Cauvery belt, use the coconut husk for processing of the fibre. According to industry sources, each unit requires on an average about 10,000 husks every day. Though there is no dearth in the supply of coconut husk, it is in great demand as it is used more for burning purposes. It, therefore, commands a good price. An industry spokesperson told Business Line that the coir fibre processing units sourced the husk at Rs 50 a bag, while it quoted at over Rs 75in the open market. "As it fetches a better price in the market than the rate quoted by us, the traders prefer to sell it for a price, which we can ill-afford," he said. The length of the fibre depended on the size of the de-husked coconut, which invariably is less than 4 or 5 inches in Trichy belt, compared to almost double that length in the Pollachi coconut belt. Since the fibre-length is an important yardstick in pricing, the coir fibre processors in Tiruchi belt say that they could realise only around Rs 220 to Rs 230 per bale, while their counterparts in Pollachi region manage to market their produce at over Rs 300 per bale. The fibre is used in making coir mats and mattress. THE sources further said the inordinate delay in subsidy disbursement caused undue hardship in the production process. "The process is water-intensive, and the machinery wears out fast. It needs to be replaced once in five years, but we get the Central subsidy only after the third year, by which time, we will have to gear up to replace the existing machinery with a new one. It is not easy," he said.
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