Coir industry is one of the traditional industries giving employment to thousands of people in the State. Directorate of Coir Development is the organization that implements the decisions of the Government on issues related with coir industry, act as a facilitator for the promotion of the coir industry in the State and to ensure sustainable employment opportunities in the industry through planning and implementation of the new policies. The 2nd Re-organisation of Coir sector guarantees Social Protection of Coir Workers focussing modernisation and innovative value added products.

Developing an efficient system of continuous procurement of husk, to ensure uninterrupted supply of raw materials, opening of new de-fibering units and modernization of the existing units, production of more value added products, institutional support for R & D are some of the thrust areas in the Budget 2020-21.

In the budget 2020-21, an amount of ₹ 11274.00 lakh is provided under coir sector for a total of twelve schemes in this budget, due importance is given to gender budgeting.

1. Cluster development and husk procurement programme in Coir sector (Outlay: `100.00 lakh)

The objective of the scheme is to form a Consortium for the collection of the husk, establishing a yarn bank, establishing common facility centre, and common showroom and sales outlets. Establishing one consortium under the scheme is the targeted output. The expected outcome is ensuring availability of raw material, use of modern technology, increase in the volume of sales and exports.

  1. Cluster Development Programme: Cluster Development Programme in Coir sector is being implemented by Coir Board under the Scheme of Fund for Regeneration of Traditional Industries (SFURTI). Clusters can be formed as per norms and avail the central assistance based on projects. The amount provided can be utilized as State‟s matching share in the projects.
  2. Coir consortium: Husk procurement is the key to successful implementation of the „2nd restructuring of coir sector‟ as it provides the raw materials required for mechanisation of the defibering units. Therefore an institutional mechanism is essential for catalysing mechanisation and technology development in the State in achieving self-reliance, diversification and quality in the coir sector.

An amount of `100 lakhs is provided for the scheme in the budget 2020-21 towards matching State share of Cluster Development Programme and for the consortium.

2. Mechanisation and Infrastructure Development of Coir Industry/Regulated Mechanisation of Coir Industry(Outlay: `4167.00 lakh)

This scheme intends to meet the global demand of diversified coir products of superior quality and to withstand the price competition from other fibre products, it is essential to modernize and enhance the productivity in coir industry to enable the sector to meet the global demand of diversified coir products of superior quality withstanding the price competition from other fibre products.

1. Public Sector Undertaking: Rejuvenation, modernization and technology upgradation of PSUs like COIRFED, KSCC, public sector undertakings and other government institutions in
the coir sector. An amount of `1000 lakh is provided for the above activities in the budget 2020-21.
2. Co-operative Sector and Entrepreneurs
a) Co-operative Sector: Assistance for basic infrastructure, Effluent Treatment Plants (ETPs), Common Facility Centres, plant, machinery and equipments required for technology upgradation of the spinning, weaving and defibering sector of co-operatives revival projects of co-operatives covering margin money, working capital, and project implementation charges are envisaged under this scheme. An amount of `1167.00 lakh is provided for their activities.
b) Entrepreneurs: Assistance for adoption of modern technology for husk procurement, increased deployment of DF units, the establishment of automatic spinning mills, PVC tufted units and allied activities on the process chain on entrepreneurial mode. Assistance for production of Non-woven Coir Geotextiles, Coir composites/injection moulded Coir for automobiles, Coir Composite Boards, Coir ply and Coir wood products and needle punch units on entrepreneurial mode with viability gap funding in Coir non-woven sector. An amount of `2000.00 lakh is provided in the budget 2020-21 for the activities.
A total amount of `4167.00 lakh is provided for the scheme in the budget 2020-21 for the above activities.

3. Training and Management Improvement (Outlay: `300.00 lakh)

The objective of this scheme is to provide training to staff and workers in department, PSUs and coir co-operatives. Activities under this scheme include;
• Training to the employees of the Coir Development Department, COIRFED, Kerala Coir Workers Welfare Fund Board and PSUs and coir workers in the latest development/research and development innovations in the coir sector
• Imparting training to society functionaries and workers of coir co-operatives for the better management of the societies including skill up-gradation, training for quality assurance in products, entrepreneurship development activities.
• E-governance activities such as modernization of the department by completing computerization based on IT Master Plan, AMC, adding hardware and software, maintenance of the website, net connections.
• Activities related to running of Project Management Units to monitor 2nd Restructuring of Coir sector.
An amount of `300.00 lakh is provided for the scheme in the budget 2020-21.

4. Grant for Centres for Research and Development in Coir Technology(Outlay: `714.00 lakh)

The scheme intends to undertake in house R&D activities as well as outsourcing R&D required to improve the coir sector as a whole to enhance productivity in the sector. Bringing innovation in mechanization/technologies, creation of diversified coir products with high value addition, development of product designs, hiring professionals/technical experts and grants to educational institutions/universities for carrying out research activities, improving infrastructural facilities and meeting project based expenses of NCRMI. Emphasis on issue based R&D, focusing process improvement in the extraction of fibre, pollution free retting,
modernization of production infrastructure, new product/process development, product diversification etc.

An amount of `714.00 lakh is provided for the scheme in the budget 2020-21 for the above activities.

5. Marketing, publicity, propoganda, Trade Exhibitions and Assistance for setting up of showrooms(Outlay: `1082.00 lakh)

The objective of the scheme is to popularize the activities in the coir sector and strengthening marketing for overall development of the sector. The outlay provided in the budget for attending and organizing trade fairs at State, National & International level including “Coir Kerala”, support to coir co-operatives, Coir PSUs & other institutions/department in the Coir sector for participation in trade fairs/exhibitions, buyer-seller meet, coir mart, popularization of scheme/activities, conducting studies, enumeration, documentation of activities, project report preparation, conducting seminars/awareness camps/ workshops, giving awards and scholarship in the coir sector, organizing coir day etc.
A part of the total outlay can be used for the activities of the newly formed Kerala Coir Marketing Company Private Limited for expanding the market reach of coir and allied products. A part of the outlay can also be used for design and infrastructure support to potential showrooms to be set up in various States, matching contribution for renovation of PSU showrooms and establishing Coir Museum at Alappuzha.
An amount of `1082.00 lakh is provided for the scheme.

6. Market Development Assistance for the sale of Coir and Coir Products (50%State Share as matching fund) (Oulay: `672.00 lakh)

Assistance to be utilized for Publicity, renovation of godowns, market study and innovative marketing strategies including payment of discounts, introduction of e-commerce facilities, upgradation of design facilities as per Govt. of India norms along with central share. The incentives shall be input output linked for the products of Coirfed, Fomil, Kerala State Coir Corporation and Coir co-operatives as applicable based on total turnover of respective institution and that of the sector as a whole, taking into account employment generated and value addition in the value chain. Care should be taken to avoid duplication of assistance under other schemes like Price Stabilization Fund, Income Support Scheme etc. The provision can be utilized as State share for assistance received from Government of India as matching fund.

An amount of `672.00 lakh is provided in the budget 2020-21 for the above activities.

7. Production and Marketing Incentive (PMI)(Outlay: `336.00 lakh)

Production and marketing incentive (PMI) scheme is for providing assistance to promote production, marketing and export of coir and coir products including PVC and rubberized coir products and coir geo textiles by the Primary Co-operative Societies, Mats and Mattings co-operative societies, Apex societies and Public undertakings viz, Kerala State Coir corporation and Foam Mattings (India) Limited to encourage sustained production so as to facilitate sale in coir sector and thereby generate more employment opportunities in the sector. A portion of the amount can be utilized for promotion and marketing of heritage products. Assistance shall be based on actual sales turnover of the institutions and input output linked, taking into account employment generated/value addition on products. Care should be taken to avoid duplication of assistance in the form of incentives proposed under MDA scheme as well as other assistance under income support scheme and alike at various stages in the value chain. An amount of `336.00 lakh is provided for the scheme in the budget 2020-21.

8. Price Fluctuation Fund (Outlay: `3800.00 lakh)

The scheme intends to stabilize the price of coir fibre, yarn and coir products. This scheme aims to make the COIRFED, FOMIL and KSCC capable to procure the products from co- operatives giving price at par with the production cost and compensates the loss, if any, sustained while selling at market prices. The co-operative societies, small scale producers and apex organizations will be directly benefited and indirectly benefit the entire coir workers by ensuring statutory wages. The incentives shall only be for the materials purchased through COIRFED, KSCC and FOMIL based on total sales turnover of the respective institutions comparing input output linkages and employment generated/value addition on products. Due care should be taken to avoid duplication of assistance at various stages in the value chain under other incentive schemes.
An amount of `3800.00 lakh is provided in the budget 2020-21 for the above activities

9. Coir Geo Textiles Development Programme(Outlay: `42.00 lakh)

The comprehensive Coir Geo Textiles Development Programme includes implementing model projects, using Geo Textiles as a standard engineering material, creation of awareness programmes on Geo-Textiles, strengthening of R&D and orientation on Geo-Textiles. The assistance can be given to Coirfed, Kerala State Coir Co-operatives (KSCC), Foam Mattings India Limited (Fomil), Alappuzha Coir Cluster Development Society (ACCDS), National Coir Research & Management Institute (NCRMI), Public Works Department, Irrigation Department, Local – Self Government Institutions and other agencies for implementation of various Geo-textiles activities in their respective areas based on projects with specific outcomes. An amount of `42.00 lakh is provided for the scheme in the budget 2020-21

10. Government Share Participation for Coir Co-Operatives (Outlay: `10.00 lakh)

The scheme intends to strengthen the share capital base of the co-operatives in the coir sector. Existing societies which have not availed the eligible amount in full can also avail the assistance based on clear cut viable proposals for modernization/diversification with specific outcomes. An amount of `10.00 lakh is provided in the budget 2020-21for this scheme.

11. Re-organization of coir industry-2nd phase (Outlay: `1.00 lakh)

As part of the second reorganization of Coir industry, Government plans to set up a clearly defined agenda for modernization. A distinctive feature of the modernization strategy will be social protection guaranteed to the traditional coir industry workers. Apart from the allocation of funds under State Budget, assistance from NCDC is being sought specifically for activities such as mechanization, working capital support, technology enablement, market development, professional development and capacity building. The NCDC assistance
sanctioned. A token provision of `1.00 lakh is provided in the budget 2020-21 towards NCDC approved project.

12.Modernisation of coir project offices (new)(Outlay : `50.00 lakh)

The scheme envisages modernisation of the administration and governance infrastructure of Coir Project Officers enabling a good working environment which in turns will improve the productivity of the Coir Development Officers. The activities cover upgradation/renovation of Civil, MEP & IT and allied infrastructure.
An amount of `50.00 lakh is provided for this scheme in the budget 2020-21