Business | Updated Dec 16, 2008 at 10:47am IST

Meltdown has Kerala coir industry in tangle

Naveen NairNaveen Nair, CNN-IBN

Cheriyankeez (Kerala): Kerala’s traditional coir industry is facing the brunt of global economic slowdown. While exports have already been hit, the biggest worry is the future of five lakh workers who earn their loving working in small-scale coir factories in Alappuzha, Kollam and Kozhikode districts.

The fear of these factories shutting down is weighing heavy on the minds of the workers. Says Janaki Amma, a worker, “If we lose this work then it would be the end of everything. We don’t know any other work. We will all die of poverty if such a situation comes”.

The enormity of the crisis is staggering. The US is the single largest market for coir, accounting to 37 per cent of total exports from Kerala. European countries make up 41 per cent of the market.

Both the US and Europe are in recession.

Analysts say a fall in exports to the US alone could take away half the revenues of the Rs 600 crore coir industry. Many in the business feel, its here the government needs to step in

“Government needs to somehow get the domestic market working. It’s there but in a very bad shape. We need to encourage people to use coir more and reduce use of plastic which is eating into coir's revenue in a huge way. Institutions like the Cior-Fed should go in for distress purchase and help the poor workers,” says secretary of Coir Development Committee, Sasikumar.

Perhaps the only bail out plan is to revive the domestic market with a little government help else an entire work force will lose its job in the coming months.

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