Coir industry comes to a standstill
By James Paul | 13 Dec 2001
It has been pointed out that the recent decisions by the state and the central government regarding the coir industry and the mismanagement rampant in cooperative societies of small-scale coir manufactures are responsible for the present situation.
The demands raised by the striking unions include reintroduction of the rebate system and disbursement of rebate dues by the government, withdrawal of the government move to do away with the minimum export price and implementation of the purchase price.
It is alleged that even after more than four decades the cooperative societies in the coir sector have failed to save the small-scale producers from the clutches of middleman, called depot owners, who buy coir mats and other products from the manufactures at low prices and sell it to exporters, in turn making immense profits. The societies were formed in late fifties with the aim of bringing all small-scale producers and workers under them, thus ensuring fair price for products and proper wages for workers.
Most of the societies are now under CPI(M) and CPI. These societies have failed to bring all small-scale producers under them. Only around 30 per cent of the small-scale producers and workers come under the societies.
Industry sources say the rebate system, which the striking unions wanted to be reintroduced, had been stopped by the government following complaints of widespread misuse of funds distributed as aid to tide over the financial loss following the distress sale of stocks during off-seasons.
The rebate system was introduced in 1970 during the tenure of former prime minister Indira Gandhi to help the societies compete with big coir factory owners and thus gradually establish a monopoly of coir products.