Central grant for Alappuzha Coir Cluster Project

Kochi, Sept 16: Union Minister for Agro and Rural Industries (ARI) Mahabir Prasad today said the Centre has approved the Alappuzha Coir Cluster Development Project in Kerala at a total outlay of Rs 56.8 crore with a Central grant of Rs 42.6 crore.

Inaugurating a workshop here today on ''Eleventh Five Year Plan - Programmes in Coir Sector'', Mr Prasad said the Centre had recently launched a Rs 100 crore 'Fund for Regeneration of Traditional Industries'. Under this, 25 clusters in the coir sector had been adopted all over the country.

Under the 'Industrial Infrastructure Upgradation Scheme (IIUS), the Centre had approved the Alappuzha Coir Cluster Development Project in Kerala at a total outlay of Rs 56.8 crore with a Central grant of Rs 42.6 crore, he said.

The project will undertake activities like husk collection, fibre processing, productivity enhancement, capacity building, technology upgradation, creation of infrastructure for common facility centre, export oriented porduction of value added products and product diversification.

The guidlines for Credit Linked Capital Subsidy Scheme of the Small Scale Industries had recently been modified to cover the coir industry also. Under the scheme, the coir industrial units can utilize the 12 per cent capital subsidy for technology upgradation, Mr Prasad, who holds the Small Scale Industries portfolio also, said.

He said the coir industry occupied an important position for the UPA Government as it provided employment to more than 600,000 people in rural areas, especially women and poor workers in the unorganised sector.

The advent of globalisation had offered both opportunities and threats to the coir industry. While there was a demand for handmade products in the overseas market, these goods faced a constant competition from cheaper synthetic products. It was therefore important to explore and develop new products of consumer choice and also to look for new markets.

As a long term measure, new technology and improved products should be introduced. However, prior to the introduction of any new technology, the stakeholders, including the workers, need to be educated on the need to equip themselves to survive in the changed scenario, he added.

Mr Prasad said the Centre would try to extend the coir industry to the non-traditional areas such as West Bengal, Orissa, Maharashtra, Andhra Pradesh and Tamil Nadu. Calling upon the coir sector to become competitive in all respects, Mr Prasad said the thrust for the 11th Plan should be to minimize and as far as possible reverse, the consequences of the loss of market to synthetic and other natural substitutes.

Measures to strengthen production need to go hand in hand with steps to strengthen the demand, he added.

In his presidential address, Kerala Finance Minister T M Thomas Issac reiterated the state government's resolve to revive the coir industry, which sustained 350,000 workers in Kerala.

To this end, a provision of Rs 55 crore had been made for the sector in the state budget for this year and this quantum of allocation would be maintained in the future, he said.

Stressing the efficacy of the cluster development approach, he said the state government would use this model to revive the spinning sector in the state and protect the livelihood of poor workers.

Stating that consumers abroad were willing to pay a premium for handmade products, Mr Issac said there was a need to reorient the marketing and promotional initiatives and a separate brand promotion for powerloom and handloom products.

As the traditional market in Europe was stagnating, it was important to develop new markets such as the US, he said.

Observing that the coir sector had failed to tap the advantages of technology upgradation, he said there was a need to look at new products and production techniques.

The Kerala Government was considering setting up a Coir Research Institute. he said.

Coir Board Chairman A C Jose, Joint Secretary, Agro and Rural Industries, S K Pulipaka and Coir Board Secretary M Kumara Raja were also present on the occasion.

UNI