CHENNAI: In a bid to empower entrepreneurs from marginalised sections and to replace plastic and synthetic bags with coir products, the state government unveiled the Coir Policy 2024 on Thursday.
The policy aims at product diversification and value addition with a thrust on diversifying coir MSMEs towards value-added products. It also aims at market expansion by facilitating access to national and global markets through TANCOIR and enhancing collaborations, export opportunities and leveraging the state’s unique strengths.
The policy aims to promote international recognition of quality standards and certification schemes for coir products by developing TANCOIR branding. This can help increase market demand for certified coir products and improve competitiveness of the coir industry. Eco-labelling of coir products will be taken up through Coir Board and Ministry of Environment and Forest for use as a tool in export market promotion.
It also stresses the need for infrastructure enhancement by establishing coir parks as hubs for value-added product production, and setting up testing laboratories, warehouses and cluster development for improved infrastructure support.
Tamil Nadu Coir Policy places emphasis on the “One District, One Product” (ODOP) approach. This approach aims to harness the distinct capabilities of each district to drive specialised growth and development within the coir sector. Key coir-producing districts such as Dindigul, Sivagangai, Thanjavur and Tenkasi have been identified as focal points for these initiatives.
To encourage development of innovative products, special thrust will be given to promote innovative value-added products in the coir sector by giving incentive such as 25% capital subsidy on investments made on fixed assets and 5% interest subvention for credit obtained on technology upgrade.
The policy also aims to create credit flow to coir sector in the state credit plan and especially improve access to finance for micro-enterprises. The total investment in coir sector is Rs 5,331 crore. The total turnover of coir products in Tamil Nadu is Rs 5,368 crore and the export value of coir products is Rs 2,186 crore.