Coir export value drops to 2.7%, volume climbs by 10% in 2007-08

 

Financial Times     

Kochi, Apr 11 Appreciation of the Indian rupee has meant lesser realisation on incremental coir exports, as exports for fiscal 2007-08 recorded a value drop of 2.7% on a volume increase of 10%.

 

Provisional estimates provided by the state-run coir board indicates that India exported 1,86,481 tonne of coir products in fiscal 2007-08 valued at Rs 588.79 crore as against 1,68,754.75 tonne valued at Rs 605.16 crore in 2006-07.

 

The volume of exports has increased by 10.5%, while value dropped by 2.7%. In fiscal 2005-06, the exports stood at 1,36,026.97 tonne valued at Rs 508.44 crore.

 

The US continues to be the biggest market for coir exports with 34% of the market share (in volume), but has seen revenue share drop by almost 50%, board sources told FE. In 2006-07, the US exports had a share of 36% (in value terms) of the total value realised. Interestingly, the share of China has increased dramatically in just one year by almost 600%.

 

The Board sources point out that unit realisation for exports has dropped by almost Rs 5,000 per tonne during the period of April-October 2007-08, with rupee gaining over the dollar. India coir industry has a monopoly with 90% of the share of world exports but has suffered inspite of increasing exports.

 

The low down in the dollar value continuously have hit any advantage that has been derived by a higher volume growth, sources said.

 

The coir industry is highly labour intensive providing jobs to lakh of women in the rural area. The board is desperately seeking more sops for the sector to stay afloat as exporters are finding it difficult to remain profitable at the prevailing exchange rate.

 

The board has appealed to the commerce ministry that the coir sector be included in the higher entitlement of DEPB and for a reduction in pre-shipment and post-shipment credit to 6 % from the present range of 9-11 %.