CHENNAI: The humble coir industry is facing its worst time ever. For Tamil Nadu, one of the largest exporters of coir fibre and pith in the country, the scenario is more worrying. China is the top export destination for India’s coir industry. But since the Covid-19 outbreak in that country in November 2019, Indian coir manufacturers and exporters have had no business at all. The nationwide lockdown imposed in India further worsened the matter, with domestic businesses as well coming to a grinding halt.
There are about 12,500 coir manufacturing units in Tamil Nadu, with Pollachi as the main hub. The sector directly and indirectly provides employment to over 5 lakh people. Coir Board member SK Gowthaman, who is also the president of Coimbatore District Coir Fibre and Allied Products Manufacturers Association, said that on a monthly basis, about 2,000 containers used to be shipped to China from Chennai and nearby ports, with an export value pegged at `300-350 crore. Ever since the coronavirus outbreak, China has stopped import of fibre completely, he said.
“China is our major market as 90 per cent of our produce is exported there, while only 10 per cent is used for domestic market. The situation is unprecedented as we have not received any new order since December. Adding to it, we have not received our dues and huge stock of consignment are lying in ports as the customers are not collecting it. Majority of the coir manufacturing units don’t have any capital left to infuse in the business or procure raw materials. It’s difficult for us to survive,” he said.
China mainly uses the fibre for manufacturing mattress, geotextiles and coir wood. As per the industry people, the October-May period is regarded as the peak season for the business. “Over `200 crore payment is due from our customers in China, while consignments of an equal amount are lying undelivered,” said Gowthaman. Similar is the plight of coir pith exporters. “Uncertainty prevails over the industry as we are not sure when the cargo services will resume and whether we will get fresh orders or not. By the time the coronavirus situation normalises, monsoon will start, which is lean season for the industry,”said S Mahesh Kumar, president of Coir Pith Exporters’ Association.