Coir Industry Strengthened with Fibre Bank Launch, Wage Increase

Quick Summary

• The Kerala government will establish a Coir Fibre Bank to address the shortage of coconut fibre in the coir sector, as announced by Coir Minister P. Rajeeve.
• A revolving fund of ₹10 crore has been approved for the bank; ₹5 crore is allocated for the first phase, with ₹1.5 crore already sanctioned.
• Kerala requires 12 lakh quintals of coir fibre annually but produces only 3 lakh quintals, out of which just 1.25 lakh quintals are usable for coir products.
• The Coir Fibre Bank will purchase and distribute quality fibre to coir societies based on six-month requirements, on a repayment-based system after product sales within 45 days.
• Wages for coir workers under an income support scheme have been increased by ₹50 per day; price adjustments and discussions with the Labor Department are planned to further improve wages towards a target of at least ₹500/day.
• A new insurance scheme specifically for workers in the mechanised coir sector has been announced, with an allocation of ₹21.28 lakh.

Indian Opinion Analysis

The establishment of a coir Fibre Bank represents a significant step by the Kerala government toward resolving chronic issues in its vital yet struggling coir industry, especially fibre shortages that impact production capacity and worker livelihoods. With nearly tenfold demand over local supply, this initiative could bolster output while potentially reducing dependency on external sources.

Moreover, wage increases and plans to strengthen income security suggest that worker welfare remains high on the agenda amid broader economic challenges in traditional industries like these-a commendable balancing effort between increasing production efficiency and ensuring social equity.

However, implementation will be crucial: timely funding disbursements and streamlined coordination between procurement entities (Coir Corporation/Coirfed) could determine success or bottlenecks in execution. if managed well alongside infrastructure improvements such as mechanisation initiatives or market price adjustments reflective of input costs-both suggested indirectly here-the Fibre Bank initiative may revitalize this flagship sector both economically and socially over time.

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