Fifteen countries of the Asia - Pacific region produce 86% of the coconut in the world.  But only a handful of them are known to be coir producers.  .  India is the largest producers  and exporter of coir and coir products.  Sri Lanka, Indonesia, Malaysia, Philippines, Thailand and now Vietnam are the other primary producers of coir with varying  levels of production capabilities.  Value addition in coir is at its best in India where the fibre is converted into exquisite  floor coverings, Geotextiles, etc.  which have earned a name in the International market .  The coir industry, which was confined to Kerala, has now spread to other states like Tamil Nadu, Karnataka, Andhra Pradesh,  Orissa, etc.  over the  years largely on account of various developmental and promotional programmes.   Apart from  its traditional use as rope, yarn, and floor coverings , coir fibre is finding new applications as an eco-friendly substitute  for wood and synthetics.  A long term biodegrable  geo-fabric for soil bioengineering and garden articles.  The by product of coir industry, coir pith, is increasingly being used as a soil conditioner.  The future of coir industry depends on the non-traditional areas and non-conventional products.

The coir industry in India has had a strong  export orientation since its early days when the trade was dominated by European business enterprises. With the dawn of Independence the trade came into the native hands which was a turning point in the history of coir industry in India.  The structure and production relations have undergone drastic changes. The pattern of exports and product mix has also changed.  From the level of the fibre and yarn exporter, India became an exporter of value added goods.  This has in turn brought about a major shift in the total volume and value of exports. During the 1950s the average exports in terms of volume declined to  73,200 MT per annum.  In the 1960s the volume exported declined to an average of  62,300  MT per annum.  It further declined to an average of 45,700 MT per annum in the 1070s and 26,700 MT in the 1980s.  But in terms of value there was an upswing all through this period.  From an average annual export realization of Rs.80 million in 1950s it became Rs.120 million in 1960s, Rs.210 million in 1970s and Rs.300 million in 1980s. By the mid of 90s it was Rs.1,710 million which was gone up to Rs. 3,400 million in 2003.  The export of coir over the years from India is given in Table - 1.

In the initial years the export was mostly of coir yarn to European countries, for agricultural purposes in hop and beans cultivation and as a raw - material for industrial units engaged in the manufacture of coir products. With the easy availability of synthetics, at competitive prices, and the rising cost of wages the European coir industries were constrained to either close down or to reduce their output, leaving a gap in the international market. But India could not effectively capitalize this opportunity, paving way for the synthetics to capture the scene unchallenged.  The substitution of natural floor covering segment with the synthetics was irreversible, to the detriment of Indian coir industry and trade, the ill-effects of which continue even now.

The coir industry has developed only in a handful of coconut producing countries  viz. India, Srilanka, Thailand, Indonasia, Philippnies, Malasia, Vietnam etc. The production of coir fibre is given in Table 2

Source: FAO Statistics, December,2001

Out of them India and Sri Lanka together  contribute almost 90% of the  global coir production.  According  to FAO sources.  out of the total annual production of coconuts, only 10% of the coconut husk is being used for fibre extraction amounting to an estimated  0.5 million MT of coir .  Out of this only about 30% enters the world trade.  The export in the form of fibre and yarn from  producing countries is used for value addition in the importing countries.  Sri Lanka is the largest exporter of fibre followed by Thailand and India . The export of coir fibre is given in Table  -3.

Sourse :-  FAO  Statistice , December 2001, December 2001

Product exports are mainly from India and  to some  extent from Philippines and Sri Lanka, in the form of mats, mattings, rugs, carpets , needle felt rubberized coir , geotextiles etc.  The export of coir mats, mattings & rugs are shown at Table 4

Source : FAO Statistice, December, 2001

The single largest  producer of fibre continues  to be India with 361 T.M.T followed by Sri Lanka with 52.2 T.M.T. and Thailand with 9.T.M.T during the year 2001.  The largest exporter of fibre was Sri Lanka with 44.25 T.M.T followed by Thailand with 7 T.M.T. and India with 3 T.M.T. during the same period.  The largest exporter of yarn and products was India with 58.36 T.M.T. followed by Sri Lanka with 6.87 T.M.T. the reference period. The developed countries were the major importers of yarn and products.  The imports of coir mats, mattings and rugs into principal importing countries are given in Table-5.

Source : FAO Statistics , December, 2001

The  developed countries imported 20.65 T.M.T.  of yarn while the developing countries imported only about 3  T.M.T. in the year 2001 .  Again, as expected, the  developed countries imported about 36.15 T.M.T. of coir mats mattings and rugs whereas the import of developing countries was only  1.5 T.M.T.   The  prominent markets are the North America , E.U. Countries, Australia, Japan, Korea  etc.   The traditional coir products like,  coir mats  mattings , rugs, carpets still dominate the market as is evident from the export performance of India which is the major exporter of coir products.  India exports to about  72 countries.   The major market destination is  USA   with about 37% , the European Union Countries  with  about 47% and the remaining countries of the world accounting for the rest of its coir exports.   No reliable data is available about the consumption of coir fibre and products in the domestic markets of producing countries.   The  non - availability of detailed data of production and consumption makes it difficult to assess the market potential, as well as the demand and supply position of coir products.  It is more true of the developing countries to which coir exports have been extremely low, although one would expect an expanding  market for the product.

The  value addition in coir products has been  focused on the demands of export market.  The traditional floor  coverings, mats and mattings dominate the exports.  Except for some innovations in designs and colour and modernization in wet processes like  bleaching , dyeing , softening , printing , etc.  there has been little change in production details and structural patterns of products.  Absence of product development and diversification has left the consumers with limited choice .  The new consumers particularly of the younger generation are not attracted to the too familiar monotonous products. They look for an affordable life style  product something different from the past,  which is readily available.   The unique selling properties like ecofriendliness and biodegradability,  though important, are only secondary factors influencing customer choice.  The future of coir industry depends on development of non-conventional products, thereby enabling fuller utilization of raw-material leading to creation of more employment opportunities especially in the rural areas.   The coir industry has to focus mainly on product development and diversification , if it has to survive the mounting competition.   It  is heartening to note that some innovative steps are in progress to improve the quality and structural details of products using  blends of coir fibre with other natural fibre like sisal, banana  etc.

   The  major problem  the coir industry faces today is the inadequacy of   R&D effort for product development and diversification .  Notwithstanding the euphoria over rising demand for ecofriendly  products, goods  manufactured out of natural fibres especially  of hard fibres are finding their future tough in the global market day by day.   The very properties of natural hard fibres like inconsistency of quality, mechanical behaviors, moisture related characteristics , durability etc. are disadvantageous for  large scale industrial  production .  The  processing technologies require specific adaptations and modifications .  The processing technologies require specific adaptations and modifications.  The  R&D gaps in this field is quite wide and efforts to bridge them are inadequate.  There  are several factors determining the use of   natural fibres.  High investment and transportation/storage cost , small markets, poor image, uncertainty about constant supply  of quality raw-material , etc . diminish the prospects of natural fibre products, as a whole. Coir products are no exception.  The relatively short staple length low tensile strength, stiff and brittle nature, inability to spin into finer counts etc .make the coir fibre a difficult raw-material for industrial applications.  In the given circumstances, coir industry is not likely to be competitive in the world market unless new applications are found , innovative products are developed , quality is assured costs are reduced and logistics/storage problems are sorted out 

Modernization and R&D are the key factors promoting product development, operational efficiency and cost reduction.   The  political economy of Kerala, the cradle of coir industry, has for some reason or another did not respond proactively to mechanization of coir industry in  the initial years.  This has  adversely affected modernization efforts including the work culture.  Of lat,   the situation has changed and the sector has now started accepting modern technologies and methods including mechanization .  But the progress of R&D in the field of coir machinery has been dismal.  For want of demand, innovation in coir machinery did not get the due attention that it deserved.  Consequently, obsolescence became the hallmark of coir machinery.  With the increase in demand and economies of scale coming to play its role , the coir machinery is expected to become cost effective and affordable.

The  R&D efforts of the Coir  Board of India were successful in developing  a coir composite that can substitute wood , plywood and MDF boards.  The composites are made out of a combination of two or more materials to achieve superior properties than that of its components. Here coir  fibre and phenolic resoles are used to make the ply of any desired density.  Based on the density the ply can replace plastic boards, MDF boards, or hard board  made out of wood.  The  coir ply can be reinforced with plantation wood like  rubber wood veneer, for better properties and without destroying natural forests.  They are resistant to termite and borer attacks , flame retardant boiling water resistant, and free from fungal growth .  The nail holding properties are better than MDF, because of the long staple and  normal carpentry tools are good enough to work with.  The coir ply has been standardized under BIS (IS: 14842-2000).  It has  obtained necessary approvals for use in the Indian Railway ,  Defence,  CPWD, State Road Transport Undertakings ,  HUDCO, Rajive Gandhi Rural Housing Corporation, State  Housing agencies , etc .  This technology is now  available for  commercial exploitation.  Once it becomes popular , its contribution to save the tropical forest timber would be phenomenal.   It is contribution to save the tropical forest timber   would be phenomenal.  Its contribution to save  the tropical  forest timber would be phenomenal.  It is estimated that 40  cubic meters  of coir ply can save about 26.4.ha of forest per annum form deforestation, assuming 250 trees per ha and each tree producing  1.80 cubic meters of wood.

Another R&D project of the Coir Board in collaboration with the Indian Institute of Packaging, Mumbai has developed alternative to conventional wood based packing material for various applications.   Crates made out of coir composite board for heavy equipments like circuit breakers , Lids for fibre drums  and collapsible reusable containers replacing plywood are come of the very exciting products developed under this project.  They are superior in quality compared to commercial plywood, MDF board etc.  and are very cost competitive.  Tests and trials of these products have been successful. This technology is also now available for commercial  exploitation .

Notwithstanding  these achievements, the R&D efforts in the field of coir   fibre  composites are still in its infancy.  Substantial work is yet to be done in product innovation and diversification especially to make it totally ecofriendly  by using biodegradable polymer as binding  material and to reduce cost of production.  There are several other exciting opportunities  for coir composites in the field of automobile interiors like door panels , packaging industry , household articles like trays , plates, etc for materials like crates, pallets corrugated containers , etc .  However , it is their mechanical reliability , durability, recycleability, end of  the life disposability and above all cost effectiveness that determine the preference for  use of coir composites.  The lack of awareness about the advantages of the product, reluctance of contractors and carpenters to use it , non-availability of a critical mass of these products in the market are some of the obstacles on their way to getting popularized  wit h the potential consumers.

Another non-conventional product from the coir industry is  the Coir Bhuoovastra  or Coir Geotextiles commonly being used in soil bioengineering applications .  One of the major ecological threats that the world faces today is  soil erosion, particularly of the topsoil .  The fertile , roughly 30cm thick topsoil is what sustains life and civilizations on earth. About 36% of the worlds cropland is losing topsoil at an alarming speed , threatening the food security of several countries.  The developing countries are the worst affected.  It  takes thousands of years to form the thin layer of surface soil but needs only a few minutes to lose it through erosion caused either by water or wind or mindless human interferences.   About 27% of the land surface of our country is facing threat of  one or another form  of  soil erosion.  Left unchecked , it can convert precious cropland into barren wasteland.   Deforestation is one major factor contributing to soil erosion.  The most ecofriendly method of erosion control  is through revegetation preferably using a natural geotextile .  The Coir Bhoovastra as long term biodegradable geotextile for soil bioengineering and bioremediation applications has been well acknowledged.  The coir  geotextile are available in woven  or non-woven form as meshes, needled felt, pads, Erosion Control Blankets (ECBs), geo-rolls, antiweed blankets etc.  The permeable fabric is easy to install and flows the contours of the soil surface  It is particularly useful for uneven and rocky terrains.  It can be used as an overlay for surface protection or as an interlay for separation, filtration and drainage.  It protects  the soil surface and promotes growth of vegetation during its formative stage.  It can dissipate energy of flowing water and absorb solar radiation.  The woven mesh hugging on to the surface acts like micro check dams retaining moisture for the seeds to germinate and the saplings to take root both in terrestrial and aquatic riparian habitat.  Depending on the terrain, weather condition, type of yarn used and the quality of the fabric, product life varies from one to three years.  In underwater applications it may  extend up to five years or even  more. Thereafter it degrades into a mulch and get incorporated in the soil , which gives it an edge over the synthetic geotextiles.   Coir Bhoovastra has a variety of applications as in soil stabilization, slope stabilization watercourse protection stream bank protection, shoreline protection, storm water channeling, road pavement, road surface stabilization, fly ash dump  protection, mine site reclamation, forest re-vegetation, watershed management, mud wall reinforcement ,landscaping etc.  But the sad part is that while several countries abroad have  recognized its worth as proven by the increasing exports, it is yet to  find its legitimate place in our own country.

Coir Geotextiles are used as woven fabrics . non-woven , stitched blankets etc.  for various soil bioengineering applications. According to an estimate , the world market demand for geotextiles is about 1400 million sq. meters and is growing steadily .  It is in fact an engineering material and it requires a technology based promotion strategy .  The  characteristics of specific erosion protection selection of suitable technology and testing of materials like coir geofabric, seeds, saplings, etc  are all relevant for a successful technology  based promotion of coir geotextiles.  The growing awareness about the need for protecting soil, in the developed and developing countries is a welcome sign With a new Farm Policy pruning of agricultural subsidies, replacing it with a technical assistance programme for water and soil conservation, and new norms  under NPDES Phase ll in the USA the demand for geotextiles is bound to  increase.  This  opportunity has to be harnessed.  The coir geotextile producing countries can jointly embark  on generic promotion of the product in a mutually beneficial manner .  The vast market for long  term biodegradable geotextile  which is legitimately that of coir , should be exploited through cooperative efforts .  This  would enable bulk  utilization of raw-materials and generation of new employment opportunities  particularly in the rural areas , preventing migration of workforce to urban  centers.

A CFC/ITC study held  in mid 90s has identified coir needled felt, geotextiles and coir pith as products with good export promotion.  mattresses, packaging material, acoustic and insulation material, besides its use as geotextiles.  The annual value of global sales of rubberized coir is estimated to be over US $ 500 million .  Coir needled felt is being used as mattress material plant liners, insulation pads, geotextiles garden articles and even as an organic mulch.  The restriction imposed on use of polyurethane in U.K. and  enforcement of stringent fire retardance elsewhere in Europe, offers scope for exporting rubberized coir .   But this scope is conditioned by its price competitiveness.  The lose of market suffered by the European and Japanese car seat manufacturers using rubberized coir , on account of high cost of production can possibly be regained if rubberized coir producers of India and Sri Lanka can step in with quality products at competitive prices.

The  coir pith or coir dust , which is the spongy residual material , is the by product of fibre extraction which has caught the imagination of the horticulturists.  It has immense potential as a soil conditioner and moisture-retaining medium for horticultural applications.  It is widely being used in nurseries as a  plant grow out medium especially in hydroponics.  Its  demand is on the increase due to the restrictions being imposed on mining of peat moss.  With  quality assurance, the product can find a ready market , either as such or as composted material. But the  potential end users are not fully aware of its advantages , and the promotional efforts have not been adequate . There is dearth of testing facilities and recognized certification  agencies in the producer countries.  Other garden articles like plant liners , baskets, grow bags, shredded husks, and bit fibres are also in demand for orchid and other  cut flower cultivation in the large and growing Market Garden sector.

Quality  of coir products is often difficult to maintain  because of the very nature and availability of the raw-materials like fibre, yarn, dyes, ,chemicals, etc.  Besides, the production infrastructure like looms are obsolete and often in dilapidated condition.  The workmanship of thousands of skilled and semi-skilled workers vary substantially that homogeneity and standardization are hard to achieve.  Obviously quality is the casualty.  Training for skill development and extension programmes for quality upgradation of the widely scattered tiny household units and their maintenance are critical in improving the current state of affairs.

Inadequacy of ready to use information keeps the manufacturers, mostly small in size, ignorant of the market condition and consumer preferences - a situation that no industry can afford in this era of globalization.  The  Coir  Board has recently set up a Coir Trade Centre at  Kochi, which hopefully would meet this  badly felt need  of the industry.

Inadequate  knowledge about the product, and its end uses, non availability of  local skill, lack of accessibility to technology etc.  have led to the sub-optimal utilization of abundantly available coir fibre.  In the face of competition, mainly from synthetics , the natural fibres have suffered in global market.  But according to an FAO report , coir has suffered somewhat less  than sisal in competition from synthetics .  At the same time it is also a fact that although the prices of coir  and coir products have risen nominally, in real terns, it has not kept pace with inflation .  Therefore there may be genuine apprehension about the outcome  of expanding production base of coir leading to unhealthy competition and collapse of prices.  This can possibly be prevented through appropriate supply side management  and effective cooperation among producing countries .  It is time to think of an institutionalized mechanism for bringing the coir producing countries of the world together  An international forum of this kind can promote product development and diversification through R&D,  Market Development , Quality Improvement,  Transfer of Technology, Human Resources Development and exchange of market intelligence.  It may undertake generic promotion programmes, help prevent unhealthy competition, offer directions for production, including a supply side management and take up issues of common interest.  One such important issue is that of tariff and non-tariff barriers that  the coir products are facing in international markets .

The duty applicable on import of coir and coir products ranges between 4 to  35 per cent .  The major item of export from India viz the Handloom Mattings  attract duty up to 8.6 C/m2 for import to USA. The import duty to Austria comes to 8.4%   to Portugal, Ireland ,UK and Finland @ 8%.  In the case of coir yarn, even though import duty is removed for import to EU countries, the countries in the East  European Region and East  Asian Region levy duty at a flat rate,  ranging up to 20% .  In the Latin American Region it is about 9to 12% .  The total export of coir cordages and ropes from India  comes to a mere Rs.14.52 million ,whereas it attracts duty up to 10.8% in import  to EU  countries .  The total export of Coir Geotextiles from India comes to Rs.69.50 million( 01-02). A duty @ 5.8% is being levied on import of coir geotextiles  to the EU  countries.  This stands in the way  of promoting the export of Coir  Geotextiles.  The coir Pith is a natural substitute of natural peat and is widely used in the field of horticulture etc .  The total export of pith from India during 2001-02 was Rs. 10.58 million .  The pith attracts a duty @9%  on import to the countries in the LAC region and rates ranging from 5 to 25% to the countries in the Asian Region . In fact there should be nil duty on these products because they are ecofriendly products  mostly from the developing countries. The non-tariff barriers are mostly in the form of technical barriers.  The  coir geotextiles do not have prescribed internationally accepted standards.   Because  of this problem the end-users are hesitant to accept coir geotextiles  as  a standard material for soil bioengineering applications and the producers are unable to know what exactly are the specifications required by the end-users.  Similar is the case with the sanitary and phytosanitary  standards for coir pith .  Therefore, it is essential to prescribe  international quality standard  for coir geotextiles and coir pith.  Such issues like tariff and non-tariff barriers can be taken up more effectively by a common forum than individual countries.

To make the development process sustainable it should be economically efficient, ecologically viable and socially equitable, particularly when it  involves rapid changes.  The era of liberalization, privatization and globalization has brought in several changes and in its wake a variety  of new challenges hitherto not experienced by the coir sector .  With the opening up of market under  WTO, and withdrawal of QRS, the sector is thrown into the vortex of severe competition from within and without, that too in the face of dwindling state patronage and protection.  The fast changing  consumer preferences and widening choices have made  the  markets more demanding.  The survival of the coir industry depends  on its ability to adapt quickly to these changes and compete successfully   in the new environment.  It  is well known that the coir industry as a traditional cottage industry is beset with a host of problems relating to  decentralized  production like irregular supply and high cost of raw materials, low value addition, poor marketability of products, poor accessibility to market, poor market orientation, poor quality, inadequate market intelligence, insufficient  R&D support for product development and diversification, etc . In this background a new strategy is required  to be evolved to counter the challenges  of  emerging  market economy  particularly  with the objective of arresting the declining trend  being noticed  in the sector. It is here that the state intervention in the form of policy support for capacity building  and skill development becomes necessary to pave the way  for sustaining the coir  industry.

The  WTO agreements have a direct bearing on the coir industry as well.  Competition in the domestic market from goods imported at lower tariffs will be more severe.  In the export  market they  will face competition from other developing countries both in quality and price .  The non-trade barriers like environmental standards, occupational and health safety , working condition,  labour  standards,  labour welfare measures, technical barriers like sanitary and phytosanitary measures etc.   would further cause hurdles.  The  industry  is yet to gain the requisite  expertise in these matters.  Appropriate capacity building and skill  development measures are urgently  warranted  along with necessary policy  interventions to  facilitate them manage these issues successfully.  The specialized organizations both at the centre and the states have a significant role to play in building up capabilities of  the stakeholders.  Besides, these organizations have to keep close watch  on the movement in the market to see whether any safeguard measures are required to be taken to prevent dumping, irrational use of non tariff barriers, etc.  Adopting the role of facilitator the Coir Board has to help them in getting value added market information which they on their own will  not be able to generate.  Although there are several safeguards available under WTO , to  obtain due  protection under them is a Herculean task.  The small producers of coir sector would not have the expertise  and wherewithal to handle such cases.