Government Initiatives
India’s coir sector is witnessing positive momentum on both the export and policy fronts. Coir exports are set to gain significantly from improved global trade conditions, particularly after the United States reduced import tariffs on Indian products. Earlier high duties had impacted demand, but the revised tariff structure has enhanced the price competitiveness of Indian coir in global markets, especially in the US one of its key export destinations. This is expected to revive export volumes, strengthen India’s position in global value chains, and support employment in this traditional, labor-intensive sector.
On the domestic front, government-led initiatives are further strengthening the industry. In Tamil Nadu, the launch of the state’s first government-aided coir firm in Pollachi set up with an investment of about Rs. 9 crore (US$ 0.97 million) under the Micro Cluster Development Programme aims to boost value-added production, exports, and local employment. The facility will provide common infrastructure, warehousing, and support to around 200 coir units, while generating employment for nearly 1,500 people. Such initiatives are enhancing productivity, promoting cluster-based development, and encouraging the shift towards high-value coir products like geo-textiles and mats, thereby reinforcing India’s coir export potential.
For developing the coir industry in India, the Coir Board has launched schemes such as the Coir Vikas Yojana (Coir Development Scheme), Coir Industry Technology Upgradation Scheme, Skill Upgradation and Mahila Coir Yojana. The Export Market Promotion Scheme and Domestic Market Promotion Scheme focuses on improving exports and domestic sales of coir and coir products.
Coir Industry Technology Upgradation Scheme (CITUS)
The main objective of CITUS is to assist entrepreneurs in the upgradation and procurement of eligible plants and machinery. This way, the Coir Board aims to improve the productivity and quantity of coir products. Some of the other objectives of this scheme are to establish state-of-the-art processing units, enhance the utilization of raw materials, create employment opportunities, and attract newer entrepreneurs in the coir industry.
A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship (ASPIRE)
The ASPIRE scheme aims to establish a network of technology centres and startup incubation centres in the rural parts of India. For the development and promotion of the coir industry, the Ministry of MSME and the Coir Board established the Livelihood Business Incubation (LBI) models for the coir industry.
Scheme of Fund for Rejuvenation of Traditional Industries (SFURTI)
Launched in 2005 by the Ministry of MSME, the SFURTI scheme aims to make the traditional industries in India more competitive, market-driven, productive, profitable, and capable of generating employment, especially in the rural parts of India.