Exports have fetched a lower value of Rs 63.75 crore from April-June 1999 against Rs 65.79 crore during the corresponding period last year.

According to coir industry sources, a segment of the exporters were clamouring for lower MEP which was later approved by the central ministry. The MEP was fixed two years ago, said sources. The MEP was also subject to constant foreign currency fluctuations, he said.

There has been an increase in the export quantity of traditional items like coir mats, mattings, rugs and coir carpets as well as the new technology items like rubberrised coir, coir geotextiles and coir pith. Only coir yarn and coir rope have shown a downtrend. As these are low priced items compared to the other value-added items,the reason behind the decline in export earnings lies in the low MEP.

Coir pith has improved its export position admirably from 221 tonnes during April-June 1998 to 1424 tonnes during April-June 1999. It has caught on well as a natural soil conditioner and has generated a good demand from Australia, the UK and other western countries.

It is generally exported in the brick form. Coir geotextiles exports have improved from 180 tonnes valued at Rs 75 lakh in April-June 1998 to 257 tonnes valued at Rs 108 lakh. The country is finding newer markets for coir and its products, according to the Coir Board chairman Christy Fernandez. But the focus of the board is the vast domestic market which lies untapped. It would be a major success if coir products are sold at far eastern and northern and western parts of the country with the same zeal as exports.He said it is pitiable that the coir industry has to depend on exports. Most of the ills of the industry can be sorted out by improving the production along withcreating a demand internally. Increased utilisation of coconut husk for coir production in the coconut-growing state would also provide increased rural employment opportunities, Fernandez said.

According to him, the board would promote internal market through an action plan for domestic market development, which would also have an enhanced outlay.

The centre is considering a proposal by the board to introduce a market development assistance scheme in place of the prevailing rebate scheme, he said.

The Coir Board has also proposed to set up a raw material bank for easy availability of raw material without any middle men. The bank, which would be a public limited company will take care of items like coconut husk, coir fibre, dyes and chemicals, hessian clothes and jute twines required by the industry, Fernandez said.