Kerala to set up yarn bank to tackle coir fibre shortage, safeguard jobs of two lakh workers

THIRUVANANTHAPURAM: In a significant intervention to revive Keralas struggling coir sector, the state government has announced the formation of a yarn bank to tackle the acute shortage of coir fibre. Industries and Coir Minister P. Rajeeve said the project, with an allocation of Rs 5 crore, is intended to ensure a steady supply of fibre to units across the state and safeguard the livelihoods of more than two lakh workers, nearly 80 percent of them women. The yarn bank will be jointly managed by the Kerala State Coir Corporation Ltd and the Kerala State Co-operative Coir Marketing Federation Ltd (Coirfed). It will stockpile coir fibre for a year, enabling small and large units to access raw material at affordable rates. Government sources added that the final decision on the location of the yarn bank will be taken shortly, but officials confirmed that it will be established in a region with large-scale coir activity to maximise impact. The announcement comes at a crucial time. Keralas traditional coir industry, which once stood as a global leader, is reeling under the pressure of scarce raw material and soaring fibre prices. According to the Ministry of Commerce and Industry, there are about 9,000 registered coir product manufacturing units in Kerala, with about 80 per cent concentrated in Alappuzha and the rest in Kollam and Thiruvananthapuram. Most of these earlier units depended on fibre sourced locally from Vaikom and Thiruvananthapuram. However, in recent years, fibre extraction in these areas has dwindled, forcing manufacturers to rely heavily on supplies from Tamil Nadu. Over the past 18 months, the cost of fibre has skyrocketed. A year ago, Vaikom coir cost Rs 40 a kilogram. Now it is sold at Rs 5060, but even at that rate it is hard to get. The Anjuthengu coir fibre, once priced at Rs 100Rs 120, is now unavailable even at Rs 180 Rs 200, said Maheshan, who runs a spinning unit in Kollam. The crisis has also weakened Keralas export performance despite rising international demand for coir products such as mats, pith, geotextiles, and other products. In 202324, Indias coir exports were valued at Rs 1,285.11 crore, reaching more than 100 countries, including the US, Australia, EU nations, China, and Japan. But Keralas contribution during the same period was a mere Rs 10.05 crore, according to records from the Directorate of Coir Development. In India, apart from Kerala, coir industries are dominant in Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra, Goa, Odisha, Assam, Andaman and Nicobar Islands, Lakshadweep, and Puducherry. Sources said that any delay in setting up the yarn bank will only strengthen these states, which are already posing tough competition to Kerala in the international market. Exporters warn that unless fibre prices are stabilised, Keralas presence in the sector will shrink further. We can adjust for up to a 10 per cent rise in raw material costs. But if it crosses 2030 per cent, exporters shift to Tamil Nadu or Andhra Pradesh, said Manoj Kumar, an exporter from Cherthala. The fallout has been severe on workers, particularly women in Alappuzhas cooperative spinning units, who are now struggling to find steady employment. Many workers are leaving for construction and daily-wage jobs, as there is no guarantee of work in coir anymore, said Sumathi, a worker in the spinning sector. Ironically, this Onam, Keralaonce proudly known as the land of coconutsis grappling with two coconut-related crises. On one hand, soaring coconut oil prices have forced the government to intervene to ensure an affordable supply in the market. On the other hand, the shortage of coconut fibre has put thousands of coir workers on the brink of losing their livelihood. Government sources said efforts are underway to address both troubles simultaneously, with the yarn bank expected to provide a long-term solution for the coir industry. With this initiative, the state government hopes to restore stability to the coir sector, ensure raw material security, protect exports, and safeguard the future of over two lakh workers in one of Keralas oldest traditional industries. Export data of Coir products 2019-20 : Rs 14.25 crore 2020-21 : Rs 14.13 crore 2021-22 : Rs 17.31 crore 2022-23 : Rs 16.40 crore 2023-24 : Rs 10.05 crore Source: Directorate of Coir Development, Govt of Kerala