Dismal exports prompt coir industry to look at home market

Export market is showing signs of stagnation because of competition from synthetic products

As the export market shows signs of stagnation for coir after years of good growth, the Coir Board is aggressively looking to expand its domestic reach mainly in North India.

“Till now, coir was largely an export item, but now our motto is to promote the domestic market as well,” Coir Board Chairman G Balachandran told Business Standard. The export market for coir products is showing signs of stagnation because of stiff competition from synthetic products.

For 2013-14, Coir Board has targeted revenues of Rs 2,500 of which around Rs 1,200 crore will come from exports.

“Going forward we want to change this to almost 70% from domestic market and rest from exports,” Balachandran said. He said that sales in the domestic market can be tripled from the current level.

“There is huge potential for coir and coir products in the domestic markets particularly in north India,” he said.

As part of its drive to penetrate north India, Coir Board plans to aggressively promote the use of geo-textiles, coir wood and organic manure from coir piths in North India.

“Geo-textiles made from Coir could be used to bind loose soil together, while Coir wood can act as supplement for normal wood,” Balachandran explained.

He said the Board also plans to expand its offices in north India from the existing 15 in the coming years and also start new showrooms. 

The Board has also signed agreements with many other Coir producing nations for transfer of technology and expertise.

“The world over 93 countries have coconut farms, but only 10 including India produce coir from them. So, there is immense scope to expand the business,” Balachandran explained.