KOCHI : A surge in the price of coir yarn due to a shortage is likely to lead to increased product prices and delays in shipments of coir products, according to the Federation of Indian Coir Exporters Associations (FICEA). India accounts for more than two-thirds of the world’s production of coir and allied products.
The current market price of coir yarn is approaching Rs 60 per kg, compared to around Rs 30 per kg at the same time last year, said FICEA secretary general Sajan B Nair.
“Drought in Tamil Nadu during the harvest season resulted in a low production of nuts, leading to a drastic reduction in raw material availability for the defibering units. It is reported that around 60% of the defibering units are not operational due to the non-availability of raw materials. The few operational defibering units are operating at 35% efficiency, thereby increasing the cost of fibre meant for spinning the coir yarn,” he said.
Adding to this is the demand for husk chips, which form 50% of the growing media and are traded at Rs 16 per kg, further contributing to the increase in coir yarn prices, he added.
“The cost increase of coir yarn has adversely affected coir exports during the last quarter, and we are finding it extremely difficult to honour the export commitments coming up during Christmas. Compounding this difficulty are the soaring freight rates and container shortages,” said Arjun Mahadevan, sales director of Travancore Cocotuft.