Coir fibre industry falls prey to COVID-19

COIMBATORE: No one would have imagined the scale of India's, and indeed the world's, dependence on China for solar panels, man-made fibre, electronics among various other products.

The fact has become so evident during the outbreak of the novel Coronavirus in the world's most populated nation that even units in Pollachi that export coir fibre have taken a beating, literally.

Named COVID-19, the virus has so far claimed over 2,600 lives, according to reports. What is unknown however is the scale of damage, economically speaking, the virus has done so far.

This situation has made many units in Pollachi abruptly suspend their operations on a temporary basis. The causality of it is that, reportedly, several daily wage labourers have lost their jobs.

To put it into perspective, nearly one-lakh people are directly and indirectly employed in the units in Pollachi that export 90 per cent of their coir fibre to China. The yearly revenue generated by the units through exports stands at Rs 1,400 crore.

With Chinese buyers not placing any orders, exporters claim that they could face losses if the situation stays put.

"The January-May period is considered to be the business season for Pollachi coir units. The outbreak of COVID-19 has taken a toll on the trade between China and Pollachi," said S K Gowthaman, member of Coir Board of India. 

He explained, "There are two business seasons for exporting coir fibre to China that is between January and May, October and December. We are yet to receive payment from China for the exports made during October-December."

His worries were reflected by M Selvaraj, Secretary of Coimbatore District Coir and Allied Products Manufacturers Association (COCOMANS) who claimed nearly 50 per cent of goods have been kept stagnant as there have been no orders from Chinese buyers.

He said, "The local holidays in China is said to be extended for a few more days until the situation is brought under control. Nevertheless, around 60 per cent of the workforce employed in the 1,400 units comprises daily wage labourers. They are affected."

The one thing that keeps the units in Pollachi going at the moment is the export of coir pith to other parts of the world.

Coir Pith Exporters Association President S Mahesh Kumar, said, "Even as the regular exports of coir fibre has been affected, export to Europe, USA and Australia have kept the industries going," he added.

On the other hand, a few representations have been submitted with the Central and State governments urging for value addition for obtaining a loan, interest waiver for six months, etc, by the association.

Mahesh said the association had urged the Ministry of Finance to safeguard the uncleared goods that are already in China port. The situation is expected to change and it will be business as usual after March, he opined.

Likewise, Gowthaman urged the Central government to exempt coir products from Goods and Services Tax (GST) and also to expedite the process of creating a common warehouse facility in Pollachi to store the goods.

Similar representations were made by industrialists with Pollachi MP K Shanmugasundaram and Animal Husbandry Minister Udumalai K Radhakrishnan.

About coir fibre units

- Total tally of coir units - Nearly 1,400 coir fibre and allied products manufacturing units

- Yearly business turnover – Rs 1,400 crore (export) and `4,000 crore (domestic)

- Seasonal business months - January to May and October to December

* Coir fibre is used for making mattresses while the coir pith is used for greenhouse cultivation

* Nearly 60 per cent of the workforce and 50 per cent of works affected due to COVID-19