SRIKAKULAM: The Uddanam region, renowned for its coconut crop and coir-making units, is witnessing a sharp decline in its coir industry.
Once bustling with around 20 units in areas like Ichchapuram, Kaviti, Kanchili, and Sompeta mandals, the number has dwindled to just four. The primary reason: a severe shortage of quality raw materials locally. As a result, coir units now source materials from distant places, paying over Rs 9,000 per lorry load.
Earlier, coir fiber from Uddanam was exported to states such as Gujarat, Kerala, and Tamil Nadu. However, the industry has taken a hit due to several factors: reduced coconut yields, poor-quality raw materials caused by insect infestations, and rising costs of maintenance, including machinery, power, and wages.
Despite the crisis, both the central and state governments have yet to intervene with financial aid, subsidies, or low-interest loans. Unable to sustain operations, many unit owners have closed their businesses, repurposing premises into scrap shops and godowns. This has particularly impacted local women, who formed the majority of the workforce, forcing many to migrate to cities in search of alternative livelihoods.
Kishan Swaroop Gupta, a coir unit owner from Kanchili, explained, “We are paying Rs 10 per unit in power charges, resulting in a monthly bill of over Rs 40,000, besides Rs 1.5 lakh in wages and other expenses.” Another owner, Vijayendar Gupta, pointed to increased raw material costs and declining demand as major challenges.
District Horticulture Officer RV Prasada Rao said while no current support exists for coir units, plans are underway to establish a coconut park that would include coir production facilities. However, CEOs of primary agricultural cooperative societies noted that they have not received any directives to offer subsidised loans to coir units.