Coir exporters bank on strong dollar to recover past losses

Financial Express

18 Sept. 2008

 

Coir exporters are banking on the strengthening of the dollar to recoup losses suffered in the recent past, traders say. Coir exports have suffered loss due to the slow down in European and US economies and are reporting a decline in the past few months. With the Indian Rupee weakening against the dollar, exporters see an opportunity in pruning the rates and regaining the losses, Coir Shippers Council Secretary KC Eapen told FE.

 

During the last FY, the coir sector suffered reverses due to the strengthening of the Indian Rupee and incremental coir exports were carried out at declining unit value. While volume of exports increased by 10.5% during 2007-08, when compared with the previous FY, value dropped by 2.7%. "Rupee has come down by almost Rs 6-8 when compared to the same period last year. This should help exporters in bringing more volumes," Eapen said. He added that India has a monopoly in the export of coir and with the only deciding factor being rates, the declining rupee opens new markets for exporters.

 

As per the provisional figures of the Coir Board, export of coir and coir products dropped by 23.12 % during August alone, while value showed a decline of 15.91%. However, the cumulative exports for the current FY (April-August) show an increase in volume and value of 6.9% and 7.56% respectively.

 

Coir mats, pith, yarn and fibre are showing a declining trend while rugs and carpets recorded an incredible increase of 300 % in volume terms during the period. Traders also fear that export to China may suffer in the coming days with consumption slowing down there post Olympics.

Kerala's coir exports caught in a tug of war over prices

Economic Times

17 Sept. 2008

 

KOCHI: Coir export from India is likely to be hit with the coir yarn producers and dealers in Kerala stopping the supply demanding higher price from exporters. With the exporters in the state, which is the major producer of coir products in the country, being in no mood to relent, the situation is heading towards a stalemate.

 

According to Kerala Coir Yarn Producers and Dealers Association, the rise in price of brown fibre and transportation charges have increased the cost of production. Association secretary Sibi said the cost of brown fibre has risen from Rs 300 to Rs 360 per kg.

 

Most of the brown fibres come from Pollachi in Tamil Nadu. The truck rates for transportation have increased to Rs 5,550 from Rs 4,800 after the hike in diesel price.

 

Mr Sibi said last year the producers got a price range Rs 24.50 to Rs 26.50 per kg. But this year it has come down further.

 

"We need to get around Rs 26.50 per kg to carry on our business," he said. The global situation has also turned advantageous for the exporters with the recent depreciation of rupee, he added.

 

The exporters, however, said prices have not stabilised globally and as a result they were yet to be on a firm footing. "The rupee depreciation is limited only to the dollar. It has appreciated against the euro and the pound," Mr Ponnambalam, former president of the Indian Coir Exporters Association, said.

 

The exporters are eyeing at other southern states for preparing coir products. It would also save the cost as Pollachi is already a main centre for the production of the brown fibre. Coir spinning has caught on well in other southern states, they said.

 

In 2007-08, the value of coir exports from the country had dropped to Rs 593 crore from a level of Rs 605 crore in the previous year mainly due to appreciation of the rupee. 

 

coir peat-free compost

Pocket Garden has launched a silver birch tree version of its easy-grow packaged plants. The bag is designed to be given as a gift to offset carbon use and is emblazoned with the message "Grow me and help save the planet by offsetting your carbon footprint". The company claims that once the tree has matured it can offset 12kg of C02 or 20 per cent of the average person's annual carbon usage and can provide enough oxygen for a family of four.

The bags contain coir peat-free compost, which is certified by the Soil Association, and a packet of seeds. To grow the tree the seeds must be planted and watered and placed in the refrigerator for eight weeks to replicate winter. After this they must be removed and stored at room temperature to replicate spring. Once the sapling grows to between 18 inches and 24 inches it can be planted outdoors, provided the year's last frost has past. It can be planted in its bag as it is 100 per cent biodegradable.

The trees have a recommended retail price of £5.99 and will hit the shops in three or four weeks. Pocket garden says it was keen to expand its range and find a new way to provide easy-grow plants that was even more environmentally friendly. The range of carbon offsetting gifts is expected to be expanded at a later date.

The original Pocket Garden range includes Organic Herbs, Plants and Occasions flowers.