Export of coir products register whooping increase

08 May '08

3 min read

Coir Board had participated in various international trade fairs and exhibitions and displayed the range of products available for export from India.

During this year also, Coir Board would be participating in more international trade fairs and exhibitions in traditional as well as potential regions.

Recently, the Export Market Development Assistance Scheme of the Coir Board has been modified to encourage more and more small scale exporters and entrepreneurs with an export turnover of less than Rs.2 crores to undertake promotional measures like participation in exhibition, study tour, buyer seller meet etc.

Accordingly, Coir Board would organize participation in international fairs as well as buyer seller meet to expose small scale exporters to international competition. They will be provided reimbursement of air fare and stall rent (50%) subject to a maximum of Rs.1.25 lakhs.

Coir products have a low value unit realization. This results in thin margins. Virtually, the dollar depreciation against Rupee's appreciation has brought the Coir Industry to a stand still.

The Rupee appreciation, enhancement of PLR rate in respect of packing Credit, term loan, pre-shipment/post-shipment credit by banks, unrebated service tax and fringe benefit tax etc has put the Coir Industry in doldrums; all these will erode the profit margin making Coir Exports unattractive.

Therefore, in view of the terrible erosion of even the paltry profit margin that Coir Industry is presently getting, the exporters are shy to despatch consignments.

Shri A C Jose urged for immediate remedial measures by the RBI in tandem with the Finance Ministry so as not to dent export competitiveness.

He pointed out that Coir Industry which has low unit value realization and compressed profit margin cannot absorb the appreciation of Rupee. "The rupee appreciation has put severe strain on the Coir industry," he said.

Coir Board

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