CHAPTER I1

REVIEW OF LITERATURE

In this chapter an attempt is made to analyse the available literature on

different aspects of Coir Industry for the purpose of identifying major developments

in the Industry. For analytical purpclses the existing literature can be divided into

studies on Coir Industry, studies on Coir Co-operatives and their problems and

studies on the marketing of coir products.

2.1 Studies on Coir Industry

2.1.1 "Coir Industry in India With Special Reference to Marketing and Trade" by

Bhaskaran Unnithan. K, wirs the first systematic research work in the field

of Coir Industry.' This study thoroughly analyses the industry from its

origin to international mark1:ting of coir products. The study has three parts.

The first part gives a background of the industry. It deals with the iocational

factors and the various pxocesses in the manufacture of coir and coir

products and the structure and organization of the industry. The second

part deals with internal marketing. There are two major approaches of

marketing in the study. One is institutional approach and second is

functional approach. Former deals with retailing and wholesaling and the

network of middle men in between petty producers of coir yam to and the

merchant capitalist. The second approach deals with marketing from the

stand point of activities or fi~nctions such as buying, selling, transportation,

I Unnithan Bhaskaran, K (1970) : "Coi1.1ndustry in India with special reference to Marketing and Trade," Coir Board, Cochin.

Chapter II 11

storage, standardization and grading, financing etc. The third part of the

study deals with exterm1 marketing. It analyses the major markets,

competition from other n~tions, problem of financing, export promotion

measures, market surveys, studies on quality control and recommendations

for the improvement of the industry.

2.1.2 M.V. Pyleez made an attempt to find out the problems faced by the Coir

Industry during 1974. The year 1974 was a bad year for the Coir Industry.

Due to acute shortage of fibre the industry reached to the lowest level.

This situation had caused ,:reat anxiety to all concerned with the industry.

The study involved the investigation and analysis of the delicate and some

what controversial issues in the fibre extraction, spinning, manufacturing

and export sectors of the ndustry. In the course of the study author had

interviewed literally all categories of people connected with the industry

and discussed with them different aspects of the problems faced by the

industry. The husk dealers. the workers in the various sectors, trade union

leaders, manufacturers, exporters, professional experts employed in the

industry, members of Coir Board and the concerned officials and experts

representing the state and Central Government were interviewed.'

2.1.2.1 In the study Prof. Pylee found that shortage of coir fibre was the basic

cause of the crisis of 1974. It affected the output of the spinning and

manufacturing sectors. As a result there was a substantial decrease in the

production of coir yam and coir products. This inturn left a large number

-

Pylee, M.V (1976) : "A Study of Ccir Industry in India Problems and Prospects (1975):" Coir Board, Cochin.

Chapter II 12

of workers unemployed. The Kerala Government's ban on the use of

husk-beating machines anci the husk control orders 1973 had seriously

affected the organization of zollecting, retting and extraction of fibre from

coconut husk. He also founc that the development of synthetic hard fibres,

non-synthetic substitutes, sophisticated coir products manufactured in

Western- Europe and the inability of Coir Industry in India to adopt mass

production techniques of higher productivity are chiefly responsible for

the declining trend in expc~rts. At the same time the cost of production

has been progressively risinz.

2.1.2.2 The author remarks that the declining trend in exports and the rising cost

of production must be viewed with concern and urgent steps must be taken

to mechanise and modernize the Coir Industry. This should be done in

phased manner with out displacing unduly large number of workers so as

to improve productivity and to make the industry economically viable and

competitive in the long run. He made a suggestion for detailed state wide

survey of husk potential to identify centers were husk potential is maximum.

The State Government may prepare a long term master plan for

mechanisatoin. Since the interest of workers is a major consideration for

introducing mechanization in the fibre extracting sector, preference should

be given to public sector anc worker's co-operatives to install and operate

the husk beating machines.

2.1.2.3 In the manufacturing sector there is urgent need to modernise production

and manufacture of sophisti8:ated coir products. Prof. Pylee remarks that

there is need to review the impact of advertising and sales promotion in

the past and then redefine the objectives in terms of products, markets and

Chapter I1 13

consumer motives. There is urgent need to set up and overseas market

intelligence centre. If the Coir Board has to function effectively as an

instrument to serve the inliustry, there is urgent need to reorganize and

strengthen the Coir Board in the light of functions envisaged by the Act.

The proposed reorganization of the Coir Board will involve the creation of

eight separate divisions. 'These divisions are General Administration,

Planning and Coir Production, Marketing, Export Control, Price Control,

Research and Developmerlt, Economics and Statistics and Co-operative

Organization.

2.1.3 Another study on coir industry was made by M.N.V. Nak4 In this study an

attempt is made to reveal the structure of the industry with special reference

to employment in Coir Industry.

2.1.4 Coir yam production, on of the process in the coir industry was the subject

of analysis by Tessy Kur ia~ l .~ She tries to study the salient features of the

Coir Industry, the different types of coir yarn and its end uses, spinning of

yam and organization of prcaduction in the yam spinning sector. In her study

special emphasis was given to the working of co-operatives in the

production as well as marksting of coir yam and its problems.

2.1.5 Another major study was done by Thomas Issac6 In his doctoral thesis he

tries to analyse the evolution of Industrial organization and structural

Nair, M.N.V (1977) : "Coir Industry a Study of its Structure and Organizations with Particular Reference to Employment in Kerala," Indian Institute of Management, Bangalore.

Kurian, Tessy (1982) : "Production a ~ d Marketing of Coir Yarn in Kerala," M.Phil Thesis submitted to the CUSAT, Cochin (Unpublished).

V s s a c Thomas, T.M (1984) : "Class Struggle and Industrial Structure - A Study of Coir Weaving Industry in Kerala-1859-1980," Ph.D thesis submitted to J.N.U at C.D.S Trivandrum. (Unpublished).

Chapter II 14

transformation of coir weaving industry in between 1859 and 1980. During

this period the Coir Industry had to face some major changes.

Manufacturers gradually withdraw from the direct management of

production and increasingly confined themselves to the sphere of trade.

They became merchant shippers rather than manufacture-shippers. He

remarks that the emergeme of radical working class movements and

development of labour militancy on the background of social, religious

and political conditions of Kerala opened new pages in the labour

management relations.

2.1.5.1 The structural retrogression in the Coir Industry can be explained with

reference to the uneven development of the trade union movement and the

consequent wage differenti2 1s between the large scale and small scale units.

The development of militant trade union movement in the small

manufacturing sector and its success in raising the wages, accompanied by

small producers movemenls in that sector and the consequent erosion of

cheap labour basis of handl"som, forced the capitalist to the technical basis

of production by introducing power loom.

2.1.6 In his working paper No. 236,' Thomas Issac made a detailed study of the

evolution of oraganisation of production in coir yarn spinning industry. He

explains the production techniques that prevail in the industry. The

production relations in hand spun yarn and ratt spun organization are

discussed separately. The hand spinning is undertaken almost entirely at

' lssac Thomas, T.M (1990) : "Evolution of Organization of Production in Coir Yam Spinning Industry," Working Paper No. 236, C:.D.S, Trivandrum.

Chapter ZI 15

the house hold level by women spinners under a variety of putting out

arrangements. There is a higher degree of differentiation in ratt spinning

and it exhibits more developed forms of capitalist organistion of

production. He also examines the trade union movements among the

workers and its implications for labour conditions, technology and

production relations in both the sectors.

2. I .6.1 Thomas Issac remarks that the export orientation of the industry and

extremely fragmented pro~iuction structure necessitated a long chain of

middlemen for the collection and disposal of the yam. Similarly the location

of the industry along the coastal belt and the dispersal of coconut production

among thousands of small land owners through out the low and mid lands

required an equally elaborate net work of traders for the collection and

supply of husks.

2.1.6.2 Thomas Issac remarks that co-operative re-organisation of the industry is

a solution to the fragmentar.ion of the production structure and exploitation

of the middle men and to ensure a decent level of living for the producers

and workers in the industry.

2.1.7 Another study was on Coir Mat Weaving Industry in Kerala by N. Madhava

M e n ~ n . ~ The study was focused mainly to examine the growth of the depot

system, its child the ne,w putting of system of production and the

organizational changes in the domestic small scale coir matts weaving

sector. The study attempted to analyse the rationale of such a system, the

Menon Madhava, N (1994) : "Chanj:es in the Organization of Production in the Coir Mats Weaving Industry in Kerala," M.Phil Thesis, submitted to Kerala University (Unpublished)

Chapter II 16

factors encouraged it and its consequences. The study found that the

organization of productio~ in the Coir Mats Weaving sector changed

through the putting out system of production due to the emergence of

depot owners, which was unfavourable to the workers and the small scale

producers in that sector.

2.1.8 A joint study was made by Pyralal Raghavan and T.M. Thomas Issac on

Revitalisation of Coir Industry in Kerala.9 In this working paper attempt is

made to evaluate policy frame work for revitalization of Coir Industry by

analyzing the new trends in :he industry viz. choice of technology, changes

in the labour market the exlernal threat in both raw materials and product

market, mechanization and rehabilitation of the displaced workers.

2.1.8.1 They have made the follo~ving suggestions for the revitalization of the

industry.

2.1.8.1.1 Deregulation of the husk market in the husk surplus northern districts.

2.1.8.1.2 Removal of restrictions on nechanical defibering in the northern districts

and for a flexible policy in this regard in the southern districts.

2.1.8.1.3 Encourage raw husk fiber extraction in the northern districts.

2.1.8.1.4 The need to introduce certain intermediate technologies which would

improve the quality of and increase labour productivity to an extent.

2.1.8.1.5 Strategies towards a systematic development of the internal market with

in India,

Pyralal Raghavan, Issac Thomas, T.M (1990) : "A Policy Frame Work for Revitalization of Coir Industry in Kerala," Working Paper No. 240, C.D.S, Trivandrum, November.

Chapter I1 17

2.1.8.1.6 Planned rehabilitation programme for the displaced workers into the

expanding sectors of the industry and

2.1.8.1.7 Technological upgradation is sought to be implemented with in the co-

operative frame work which would facilitate a more equitable distribution

of the work and the benefit; of the increased productivity to the work force.

2.1.9 The other studies on Coir : ndustry are in the form of reports and surveys.

Important them are the following.

2.1.10 Report of the committee on Coir Mats & Mattings Manufacturing

Industry" assessing the wage structure and conditions of employment in

the industrial establishments of Mats and Mattings and to find out whether

there is wide discrepancies in the wage level and other benefits to the

employees working in diffitrent factories and in between different regions

with in the state. The comrlittee gives a brief description of organization

of small scale mats production.

2.1.1 1 Due to the general dislocation and mounting figures of unemployment in

the industry subsequent to the fixation of the Minimum Wages (Minimum

Wages Act of 1948), Government appointed a committee to examine the

position that has affected the labourers and also the regular working of the

industry." The committee found that certain modifications in the minimum

wages already notified are necessary for the smooth and regular working

of the industry.

l o Pillai Paramesewaran, G (1955) : "ieport of the Committee on Coir Mats & Mattings Manufacturing Industry," Government of Travancore-Cochin, Trivandrum.

" Government of Travancore, Cochin (1955) : Report of the Coir Advisory Committee, Trivandrum.

Chapter II 18

2.1.12 "Report on the survey on Coir Industry in household sector 1975-76"

focused on the socio-economic conditions of the coir workers in the

household sector only.''

2.1.13 Report on coir workers census in Kerala 1988" -estimates the socio-

economic aspects of coir workers. The objective of this census was to

identify the actual coir workers and issue family benefit identity cards to

them incorporating all the ~elevant details of members thereof. The period

of the survey was four moiiths. The census covered 256 revenue villages

spread over 29 Taluks in the State where coir workers are concentrated.

The survey was primarily aimed at identifying the coir workers. Survey

reveals the total number of coir workers household, district wise

percentage distribution of coir workers, grouping of coir workers on the

basis of sex, age, percentage distribution of coir workers according

occupational status, percentage distribution of coir workers by educational

status, percentage distribution of workers according to ownership of

residential houses, percentage distribution according to monthly income,

and the percentage distribution on the basis of literacy. This study gives an

overall picture of coir workers in Kerala.

2.1.14 The Kerala Statistical Institute, Thiruvananthapuram carried out a Survey

of Coir Industry in Kerals during the period August 1995 to November

' Bureau of Economics and Statistics (1978) : Report on the Survey on Coir Industry in Household Sector, 1975-76, Thiruvananthapuram.

" Department of Economics and Statistics (1990) : Report on Coir Workers Census in Kerala 1988.

Chapter II 19

1996 at the instance of the Coir Bord.14 The survey covered the following

aspects of the Coir Industry.

2.1.14.1 Quantity and value of coconut husk used in Coir Industry and of fibre, yam

and coir products producecl in Kerala.

2.1.14.2 Number of workers engaged in Coir Industry.

2.1.14.3 Extent of utilization of equipment in the industry.

2.1.14.4 Pattern of disposal of fibre, yam and coir products.

2.1.14.5 Demand for fibre, yam anc coir products.

2.1.14.6 Movement of fibre, yam and coir products from Kerala and to Kerala and

2.1.14.7 Socio-economic aspects of Coir Industry in Kerala.

2.1.15 The survey revealed that tlere are 1,9 1,656 coir households in the state.

The survey grouped the workers as Primary, Secondary and Ancillary

workers. A person whose main income for livelihood is from Coir Industry

is treated as a primary worE.er. A person whose income from Coir Industry

is only a secondary source of livelihood is treated as a secondary worker

and a person who has more than one occupation but worked in Coir Industry

at least for some time during the last one year and earned a part of income

for his livelihood is treated as ancillary worker. The survey also revealed

total production, internal c msumption and external trade of coir products.

l 4 Kerala Statistical Institute (1997) : Survey of Coir Industry in Kerala, Thimvananthapuam.

Chapter II 20

2.1.16 "Coir Industry and Nineth Five year plan (1997-2002)"'5 gives the

programmes for the 9" five year plan envisaged by the Coir Board. The 91h

plan proposals for Coir Industry aims at increased utilization of coconut

husk for production of fibre and growth of value added products through

modernization. The majo: efforts projected for accelerated growth of

domestic market and pronotion of export market are by implementing

'Market Development Assistance Schemes and Export Development

Assistance Schemes'. The area of thrust in the 91h plan are for an expansion

of domestic and export martet, modernization of production infra structure

for attaining high productivity, quality upgradation and product

diversification. In the science and technology sector, the emphasis is for

modernization of productio:~ and new uses of coir and coir pith and product

diversification. Training programs for workers for modernization and

mechanisation, implement;.tion of welfare programmes are also proposed

in the plan.

2.1.17 A Special Task Force oil Coir Industry was constituted by the State

Planning Board, under the chairman ship of Dr. Thomas Issac, Associate

Fellow C.D.S Thiruvananthapuram in 1990,16 to study in detail the present

plight of the industry and s lggest concrete measures for the uplift of the

Industry.

2.1.18 The terms of reference assigned to the Task Force were

' I Coir Board (1 998) : "Coir Industry and Ninth Five year plan 1997-2002," Coir House, Cochin.

Government of Kerala (1990) : Report of Special Task Force on Coir Industry, State Planning Board, Thiruvananthapurrn, June.

Chapter I1 2 1

2.1.18.1 To examine measures for increasing the economic availability of husks at

reasonable prices.

2.1.18.2 To examine the conditions in fibre production with special reference to

restrictions on mechanical tlefibering and the brown fibre industry.

2.1.18.3 To revive the functioning of the coir co-operatives in Kerala and propose

measures for increasing their efficiency and economic viability.

2.1.18.4 To propose measures for improvingthe quality of yam and productivity of

labour in yam spinning.

2.1.18.5 To examine measures for inproving the weaving process and the present

restrictions on the mechanixation of the weaving sector.

2.1.18.6 To propose measures for export promotion and development of the internal

market for coir and coir proliucts and

2.1.18.7 To review the research and development activities in Coir Industry and

identify the priority areas for research and development that should be taken

up on a war footing.

2.1.19 Various interest in coir industry viz. exporters - cum - manufacturers, small

scale manufacturers representatives of coir co-operatives and major trade

unions and institutions connc:cted with coir industry viz. Coir Board, Coir

Development Directorate ancL Coir Fed were represented in the Task Force.

The recommendations of thl: Task Force are divided into the following

sections.

2.1.19.1 Measures for increasing the c:conomic availability of husk and fibre.

Chapter I1 22

2.1.19.2 Measures for improving the quality and productivity of yam in the spinning

sector.

2. I . 19.3 Re-organisation of the co-operative sector.

2.1.19.4 Measures for improving the manufacturing sector.

2.1.19.5 Measures for export promotion and development of internal market and

2.1.19.6 Research and development activities.

2.1.20 The recommendations of th: Task Force are significant departures from

the policy pursued in the pas: particularly the nature of interventions in the

husk market, policy towards non-retted husk fibre sector and the

technological choice in the industry.

2.2 Studies on coir co-operatives

2.2.1 The State Co-operative Union, Kerala published a pamphlet entitled "Coir

Co-operatives in India" by K.B. Unnithan in 1968." It was a land mark in

the history of Coir Co-operatives in Kerala. It examines the problems of

Coir Industry, particularly exploitations of poor workers by middlemen

traders and petty producers and the need to re-organise the Industry on a

co-operative basis.

2.2.2 O.V. Varkey's Doctoral thesis was a detailed study of the Coir Co-operatives

with special reference to Primary Coir Vyavasaya Co-operatives.'' The

" Unnithan, K.B (1968) : "Coir Co-operatives in India, State Co-operative Union," Kerala.

Varkey, 0 . V (1981) : "Development and Working of Coir Co-operatives in Kerala," Ph.D thesis submitted to the University of Pune (Unpublished).

Chapter I1 23

study made an attempt to analyse the organization and development of coir

co-operatives viz. primary 5 ocieties, Thondu Vyavasaya Societies, Mats and

Mattings Societies and C o ~ r Marketing Federation.

2.2.3 Another study on coir co-operatives was made by Hemalatha.I9 Her work

deals with the study of Coil Fed, an apex co-operative body in the coir co-

operatives. The author explains the origin and development of coir co-

operatives in general and particularly analyses the working of Coir Fed and

its problems and prospects.

2.2.4 In this field another study was made by P. Rajendran Nair.*" He has made

a comprehensive analyses of co-operatives and private units in the coir

processing industry. His study is confined to the coir processing units of

Kayamkulam Project Area. The objectives of the study are to get a clear

knowledge of the working of two sectors - Private and Co-operative - of

the Coir Industry to compare the two sectors from different aspects namely

employment, number of working days, efficiency, wages and other fringe

benefits of the labour class.

2.2.5 Another major study in this lield was made by The Special Task Force on

Coir Industry under the chairmanship of Dr. Thomas I s s a ~ . ~ ' The special

Task Force made a detailed study of all the aspects of coir co-operatives

l 9 Hemalatha (1992) : "Role of Coir Fed in the Co-operative Sector of Coir Industry in Kerala," M.Phil thesis submitted to Kerala University (Unpublished).

'O Nair Rajendran, P (1 993) : "Coir Processing Industry - A Study of Co-operative and Private Units," M.Phil Thesis submitted to Kerala University (Unpublished).

' Government of Kerala (1990) : Report of the Special Task Force on Coir Industry under the Chairmanship of Dr. Issac Thomas, Stale Planning Board, Thi~vananthapuram.

Chapter II 24

and made the followir~g suggestions for the re-organisation and

strengthening of co-operative sector and creation of infrastructure

facilities.

2.2.5.1 Appointment of a special officer and constitution of a committee for the

re-organisation of the co-operative sector. An outlay of Rs. 5 lakhs has

been proposed to meet the salary and allowances and office expenses of

the special officer.

2.2.5.2 Grant to the re-organised coir co-operative societies to wipe off loss. An

amount of Rs. 400 lakhs has been provided for the 8Ih plan under this head.

2.2.5.3 Enhanced rate of manager] a1 assistance to re-organised coir co-operative

societies. The re-organisetl societies will be given managerial assistance

at a flat rate of Rs. 7200 per annum for five years, instead of the present

tapering system of 100% d~ ring the first year, 80% during the second year,

60% during the third year, 110% during the fourth year and 20% during the

fifth year.

2.2.5.4 Enhanced rate of share capital to re-organised coir co-operative societies.

Government contribution t~ members of re-organised societies would be

enhanced from Rs. 360 to Rs.900 per member in the case of primary

societies and from Rs.675 to Rs. 1800 per member in the case of Mats

and Mattings societies.

2.2.5.5 Enhanced working capital loan to re-organised coir co-opertive societies.

An amount of Rs. 400 Lakhj is proposed for the five year period.

Chapter II 25

2.2.5.6 Assistance for constructior~ of beating sheds to 400 co-operative societies.

An amount of Rs. 564 lakhs is proposed for the scheme.

2.2.5.7 Assistance for construction of ratt sheds for 400 primary societies. The

requirement for 400 societies would be Rs. 1000 lakhs. Fifty percentage

Central assistance is available for this scheme.

2.2.5.8 Assistance for construction of work sheds for looms in manufacturing

societies.

2.2.5.9 Establishment of pr0cessir.g units, work sheds etc in coir co-operative

societies with NCDC assistance.

2.2.5.10 Godown to Coir Fed with NCDC assistance. Out of the total outlays of

Rs. 500 lakhs proposed under this scheme an amount of Rs. 200 lakhs is

proposed as state share and Rs. 300 lakhs as the share of NCDC.

2.2.5.1 1 Assistance to Coir Fed to .~ards margin money and trade promotion

expenses.

2.2.5.12 Opening of sales depots.

2.2.5.13 Training to personnel of departmentlcoir co-operatives.

2.2.5.14 Welfare measures. The outlay of Rs. 20 lakhs is for construction of crkches

attached to coir co-opertives for the welfare of children of coir workers.

2.2.5.15 Accusation of land for rettin;:, beating and spinning yards.

Chapter I1 26

2.2.5.16 Medicare programme. An amount of Rs. 250 lakhs is proposed to continue

the medicare programme.

2.2.6 Report of the High Power Committee under the chairmanship of Thachadi

PrabhakaranZ2 gives a detiled description of the evidence collected by

them on matters related to availability of husk and working of societies.

He also received comp1ain.s and suggestions from the workers regarding

overlapping on the area of activities of primary coir co-operatives, Coir

Fed, competition among va~ious trade unions, working of direct production

and unit system, wages and service conditions of the coir workers, the

welfare benefits of the workers in the societies etc. The report also dealt

with the criteria adopted by the committee for the evaluation. In the light

of the suggestions and coml~laints received from the workers, traders and

representatives of coir co-'3perative societies, the committee made the

following recommendations.

2.2.6.1 Grouping of societies into A,B and C on the basis of performance.

2.2.6.2 Group A consists of societies working satisfactorily and Group B involves

the societies are not satisfactorily working but can revive with in a period

of 3 years and Group C coilsists of those societies which are dead and

beyond recovering.

2.2.6.3 Amalgamation of small and inefficient societies.

2 2 Government of Kerala (1993) : Report of the High Power Committee under the Chairmanship of Thachadi Prahhakaran M.L.A for the Revitalization and Evaluation of the Working of Coir Co-operatives in Kerala, Trivandrum, February (Malayalam).

Chapter II 27

2.2.6.4 Protecting the labourers ~f societies which are going to liquidate by

providing work at other societies which are working well.

2.2.6.5 Refixation of the area of operation of the societies.

2.2.6.6 Abolishing dual and bogus memberships.

2.2.6.7 Complete abolition of husk. control and licencing system and

2.2.6.8 Take measures to improve ihe working of Coir Fed.

2.2.7 The problems of primary Coir Co-operatives of Kerala with a special

emphasis on the Kayarnkulam project area (specializes in the manufacturing

of white fibre and yam) was also studied by V. Rajan.23 This study brings

out the significance of pri nary coir co-operatives in the coir industry,

identifies the reason for thc: poor performance of coir co-operatives and

analyses the prospects of t l e re-organisation of the co-operatives. This

study is based on secondary data collected from Bureau of Economics

and Statistics, Coir Directorate and Coir Project Office and from Primary

Coir Co-operative societies. Here analyses of societies based on the

following aspects.

2.2.7.1 Organisational aspects.

2.2.7.2 Financial aspects.

2.2.7.3 Technology used and productivity.

' Rajan, V (1994) : "Socio-Economic Aspects of Coir Co-operatives in Kerala," M.Phi1 thesis submitted to Kerala University, l'rivandmm. (Unpublished).

Chapter 11 28

2.2.7.4 Marketing aspects.

2.2.7.5 Wage structure of workers and conditions of employees.

2.2.8 Report of the Committee For the Renovation of the Afflicted Coir

Vyavasaya Co-operative Societies under the chairmanship of Anathalavattom

Anandan gives a detailed report on the performance of coir co-operatives

in Kerala.24 The report consists of two parts. The first part deals with the

evaluation of the working c f societies. For evaluation the committee used

some indices such as members contribution to shares of co-operatives,

Government's shares, total share capital, total assets, total liabilities and

cumulative loss. The committee made a detailed study of the working of A,

B and C grade societies. After the study they came to the conclusion that

the present classification is unscientific and what is required is to classify

societies in to efficient and inefficiently working.

2.2.9 The second part of the study consists of the recommendations of the

committee. The major recornmendations are:

2.2.9.1 In spinning sector societies having the ability to provide employment to

minimum 150 labourers and the manufacturing societies having the ability

to provide work to 50 workt:rs are treated as efficient.

2.2.9.2 All loans and interest liability of efficiently working societies to

Govemment may be changed to Government shares.

l 4 Govemment of Kerala (1 997) : Report of the Committee for the Renovation of the Afflicted Coir Vyavasaya Co-opertive Societies under the Chairmanship of Anathalavattam Anandan, Thimvananthapuram (Malayalam).

Chapter II 29

2.2.9.3 For getting maximum aid iiom Government, measures are taken to raise

the value of Government shares by keeping the present proportion of 1 :9

(ie. one labour share : 9 Government share contribution).

2.2.9.4 The margin of cash credit (For working capital loan) must be lowered to

10% from the present 40%.

2.2.9.5 The interest rates for all loar~s given to coir co-operatives are to be reduced.

2.2.9.6 Existing scheme of husk subsidy, rebate etc should only be given to

Coir Fed.

2.2.9.7 Financial assistance should be given to all Integrated Coir Development

Units to purchase generato1.s.

2.2.9.8 Introduction of group insuraice scheme to the coir workers through Welfare

Board.

2.2.9.9 Introduction of Housing finance scheme to coir workers.

2.2.9.10 Opening of showrooms for coir products in major cities and towns.

2.2.9.11 Providing training facilities to workers inmodern techniques of production.

2.2.9.12 Measures should be taken to promote the use of Geo-Textiles in the

construction of roads, railway lines, conservation of coastal areas and to

prevent sea erosion and soil erosion.

2.2.9.13 Manufacturing societies arl: started in coir producing centers.

Chapter I1 30

2.3 Studies on the marketing coir products

2.3.1 A major study on marketing of coir products is made by K.B. U ~ ~ n i t h a n . ~ ~

His study on coir industry in India with Special Reference to Marketing

and Trade explains the strk.tegy of marketing. The second part of his book

explains marketing structure, internal marketing, co-operative marketing

of coir and coir products, grading and standardization of coir products,

trade and transport, price trends and patterns, methods of price fixation,

artifical fluctuations, floor prices, competition from other countries, price

trends of coir mats and Government assistance for stabilizing the price.

2.3.1.1 The third part of Unnithan's book explains foreign trade of coir products.

It analyses foreign trade in coir till 195 1 and foreign trade after 195 1. It

also explains foreign markets, financing of foreign trade and export

promotion measures of Government.

2.3.2 Report of Special Task Force on Coir Industry, state planning boardz6 also

made recommendations for the promotion of marketing. These

recommendations are

2.3.2.1 Consultancy charges. The pi-oposal is to appoint a professional marketing

consultancy agency for the preparation of a detailed action plan for

expansion of internal markets. The consultancy services are proposed to

be continued for the entire five year plan period for which an amount of

Rs. 10 lakhs is proposed. Fifty percentage Central assistance is expected.

l 5 Op.cit., Unnithan. K.B

'"p.cit., Special Task Force Report

Chapter II 3 1

2.3.2.2 Opening of 20 regional w~rehouses and showrooms. Based on the report

of the marketing consultants 20 regional warehouses and showrooms are

proposed to be setup in important centers in the country during the 81h plan

period. An amount of Rs. L.00 lakhs is set apart for the purpose.

2.3.2.3 Rebate and discount sales. The recommendations is to have 10% discount

for 180 days in place of the present 20% rebate for 90 days. In view of the

anticipated boost in sales outlay has been enhanced to Rs. 1200 lakhs for

5 years. 50% Central assistance is available for this scheme.

2.3.2.4 Publicity and propaganda for Kerala Coir. Rs. I00 lakhs have been proposed

for conducting multimedia publicity and propaganda for Kerala Coir.

2.3.2.5 Strengthening of market development cell in Coir Fed. The market

development cell in Coir Fed will be strengthened for which an amount of

Rs. 10 lakhs is proposed for 5 years.

2.3.2.6 Assistance to Coir Fed for prchase of vehicles. As the quantity of fibre,

coir and coir products to be transported from the northern district will

increase, additional vehicles will have to be purchased, for which an amount

of Rs. 50 lakhs is proposed.

2.3.2.7 Price Fluctuation Fund. R13I has stipulated that a price fluctuation fund

should be created as measu1.e of safety against any loss that may sustained

by Coir Fed as a result of fluctuation in prices. Coir Fed can avail itself of

institutional finance only after creating this fund. An amount of Rs. 240

lakhs is proposed under this scheme.

Chapter II 32

2.3.3 Coir Board Publications2's ich as Coir Quarterly Journal, Coir Half Yearly

Journal, India's production. Export and Internal Consumption of coir, Coir

News and Coir Board's bulletins etc bring about detailed reports of variety

of coir products, exports to various nations, value and quantity of exports

to each nations and the competitions faced by our products in International

Markets. Moreover Coir Board published Monthly, Quarterly and Annual

reports regarding coir prod~lction and marketing.

2.3.4 From the above review of I terature it is clear that even though there are a

number of studies on Coir Industry none of them cover the entire industry

ie. Private sectors and Co-operative sectors in production, manufacturing

and marketing. Moreover a comparative analysis of these two sectors have

not yet been made. Hence i r~ filling this lacuna the present study has much

relevance.

2 7 Various Coir Board Publications.