Question : Coir Production and Export

(a) whether the Government has introduced any market development scheme in the Micro, Small and Medium Enterprises (MSME) sector especially for coir products;

(b) if so, the details thereof along with the Union Government’s share paid to the State Governments under the scheme during each of the last three years, State-wise;

(c) the details of the total quantity of coir fibre produced and total value of coir products exported during the said period;

(d) whether the Coir Board proposes to double its exports in the next couple of years, if so, the details thereof along with the steps taken/being taken in this regard;

(e) whether the Government proposes to extend these benefits to the coir producing farmers and its labourers and if so, the details thereof; and

(f) the steps taken/being taken by the Government for upgradation / modernisation and for solving the marketing problems being faced by the coir industry in the country?

Answer given by the minister

MINISTER OF STATE (INDEPENDENT CHARGE)
FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI GIRIRAJ SINGH)

(a)&(b): The Government through Coir Board is implementing a Scheme namely Coir Vikas Yojana (CVY). One of the components under this scheme is Market Development Assistance (MDA) which provides assistance to Coir Units through State Governments for the development of coir industry and improve the marketing of coir products. An assistance of 10% of average sales during the preceding 3 years is provided to the Coir Units. The MDA is equally shared by the State Governments concerned and by Coir Board, on behalf of Government of India. Central Government Share of MDA released to various State Governments during 2015-16, 2016-17 and 2017-18, is as follows:

<pre>
MDA - Year wise amount sanctioned (Rs. in lakhs)
Year Kerala Tamil Nadu Karnataka Orissa Hindustan Coir & Showrooms of Coir Board Total
2015-16 800.00 89.74 95.89 0.89 197.17 1183.69
2016-17 400.00 106.12 100.00 1.24 184.98 792.34
2017-18 NIL NIL NIL NIL NIL NIL
Total 1200.00 195.86 195.89 2.13 382.15 1976.03
</pre>


(c): The details of the total quantity of coir fibre produced and total value of coir products exported during the last three years are as follows:

<pre>
Year 2015-16 2016-17 2017-18
Fibre Production (MT) 549300 556900 559400
Total Value of Exports
(Rs. Crores) 1901.42 2281.65 2532.28
</pre>

(d): Coir Board has targeted to double the export of coir and coir products from India within the next two years. There has been an increasing trend in the exports of coir and coir products year to year. It is expected that the trend will continue during the coming year. The Board plans to implement vigorous and target oriented export market promotion programmes for achieving the target. Some of the steps taken in this regard are as follows:

• Providing financial assistance under the International Co-operation Scheme to exporters/entrepreneurs as reimbursement of expenditure subject to item-wise ceilings for taking part in delegation/BSMs, participation in fairs and exhibitions abroad.
• Organization of specialized exhibitions in India in order to showcase the capabilities of Indian coir sector before the global buying community.
• Organizing participation in international fairs held in India.
• Organizing workshops and management development programmes for skill development in the areas of international marketing, regulatory & commercial documentation in export, INCOTERMS, export finance; currency risk management etc.
• Undertake publicity propaganda.

(e): Coir Board and KVIC provided financial assistance, technical support for setting up of Coir micro enterprises with project cost upto Rs.25 lakhs under Prime Minister’s Employment Generation Programme (PMEGP). In addition, Coir Board has been implementing an Insurance Scheme for the coir workers of the country against death and disablement caused by accident. Under the scheme, the entire premium amount of coir workers of the country was borne by Coir Board. The scheme has been merged with Pradhan Mantri Suraksha Bima Yojana (PMSBY).

(f): Coir Board launched the Coir Industry Technology Upgradation Scheme (CITUS) with the objective of extending financial assistance to set up modern infrastructure facilities to the production units and to modernize the existing coir units by establishing ‘State of the Art’ plant and machinery. Under the scheme, Coir Board shall extend financial subsidy of 25% of the cost of admissible items of plant and machinery procured by coir units. The upper ceiling of the financial assistance will be Rs.2.50 Crores per coir unit/project.

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