Coir exports which had been hit by appreciating of rupee, dwindling demand for traditional products and credit defaults by buyers in the US and Europe during last few years, have achieved an impressive growth rate of close to 25% during the last fiscal.
Preliminary figures released by the state-run Coir Board reveals that the performance for 2009-10 has exceeded the target fixed by the commerce ministry of Rs 700 crore by more than 10%.
According to the board, export realisation for the last fiscal stands at Rs 775.95 crore as against Rs 623 crore during 2008-09. Volume of export for the last fiscal is higher by 42% over the preceding fiscal.
?Final export realisation would be definitely higher as we have yet to get figures from two ports. Coir has succeeded where other exports commodities have failed,? board chairman VS Vijayaraghavan told FE.
While the traditional handloom products of coir mats, rugs and carpets are faced with declining market share, machine manufactured PVC tufted mats and coir raw materials are finding increasing acceptance, Coir Board sources said. Export of Coir rugs and carpets has declined by 28% in volume and 32 % in value over the preceding fiscal with buyers in US and Europe curtailing consumption. Rubberised coir and coir matting have also fallen short of the performance of 2008-09.
In a disappointing trend, export of coir raw materials like pith, yarn, fibre and curled coir have increased substantially. China and Korea are consuming enormous volumes of curled coir and fibre from India. Chinese importers use this fibre to make coir mattress for exports, board sources said.
China controls almost 40% of the Australian mattress market. They are keen on expanding their market share and Chinese government helps in exports by providing subsidised freight, sources added.
Exports of coir fibre have increased by 273% in volume and 299% in value terms during 2009-10 compared with the same period of the last fiscal. Similarly, curled coir exports are up by 130 % in volume and 186% in value for the same period. The board is also looking to increase the domestic consumption of coir products. At present, the domestic market is worth Rs 1,500 crore, of which rubberised coir mattresses accounts for Rs 1,100 crore.