Incremental coir exports for the year have brought diminishing returns for the coir industry that depends on the export market for survival.
According to figures provided by the state-run Coir Board, the sector has lost Rs 57 crore between April and October due to the appreciation of the rupee against the dollar.
The board is desperately seeking more sops for the sector to stay afloat as exporters are finding it difficult to remain profitable at the prevailing exchange rate.
Between April and October this year, the exports were valued at Rs 340.59 crore ($87 million). During the same period last year, coir exports were estimated at Rs 331.15 crore ($77 million). The board felt that without an appreciating rupee, earnings would have been higher at Rs 397.21 crore. During the same period, 1,05,456 tonne of coir products were exported from the nation as against 87,916 tonne during the previous comparing period. The unit realisation for exports has dropped by almost Rs 5,000 per tonne during the period of April-October 2007-08 as compared to the same period last FY.
As the coir industry is highly labour intensive, providing jobs to lakhs of women in the rural area, any loss in employment generation would have serious repercussions on the economy of the state, Jose adds.
The board has appealed to the Commerce Ministry that the coir sector be included in the higher entitlement of DEPB and for a reduction in pre-shipment and post-shipment credit to 6% from the present range of 9 to 11%.