COIMBATORE: Coir units in Coimbatore district have scaled down operations due to shortage of raw material coupled with unavailability of labourers. Industry operators claimed that they have reduced the operations to one shift from two shifts per day.
They also pointed out there is a significant rise in the price of coconut husk, which is the raw material, following the decline in coconut output since mid-2023. Two years ago, the price of coconut husk stood at 20 paise per coconut. Now it has increased up to Rs 2.75. Operators said that there is a high demand in getting coconut husks to produce coir pith, coir fibre materials etc.
P Sudhakar, who runs a coir unit at Sulakkal in Pollachi taluk, said, "The coconut husk price started increasing at the farmgate due to the fall in coconut yield since May 2023. We are not able to get the required coconut husk from farms in Pollachi and Anaimalai taluks. Unit operators are purchasing it from Karnataka and Kerala. Coconut husk arrival from Kerala has dipped due to rain in Kerala. To operate two shifts, a unit needs a minimum of 50,000 husk. But, we are getting only 50% of the total required raw material these days."
600 core units in Pollachi
C Balasubramanian, president of the Coimbatore District Coir and Allied Products Manufacturers Association, said, "Over 600 coir units are functioning in the district. Up to 70% of the coir pith is exported to the EU, US and some Gulf countries but coir fibre is majorly exported to China. About 70% of the total production depends on exports which fetch over Rs 4,000 crore. After raw material issues, the industry is facing challenges in getting labourers as migrant labourers from north India have started shifting to other industries and hotels. Meanwhile, China has been demanding since the last week of April submission of a Parent Quarantine (PQ) certificate to export fibre to the country. Due to these issues, 85% of the units are operating in one shift."
Balasubramanian hoped the raw material shortage would get resolved after January 2026 as the present climatic condition favours higher coconut yield.
A Karthick Krishnan, a coconut farmer in Kinathukadavu taluk, said, "Due to demand for coconut husk, farmers are getting a better price than coconut. As the present market trends, we are offered Rs 2.60 for green coconut husk and Rs 2.75 for brown husk. Three years ago, the price was only 20 paise per coconut husk."
