Indian coir industry is anticipated to meet its target of Rs 6 Billion for 2008-09 due to huge exports to China and flat growth in exports to some countries despite economic meltdown.
Despite the looming spectre of recession over the textile and garment sector due to economic crisis, the Indian coir industry is expected to meets its targets for the fiscal year 2008-09, said a Coir Board official.
Coir fiber and goods exports in India are likely to reach their targets of Rs 6 Billion during the ongoing financial year (2008-09). The export of coir shipments from India between April and February (2008-09) crossed Rs 5.72 Billion, with March 2009 witnessing exports to the tune of Rs 380-400 Million. The cumulative exports in volume between April 2008 and February 2009 remained flat at 1,71,859 Tonnes compared to 1,71,698 Tonnes in the same period a year ago. But on the other hand, the market share of the United States has declined from 40% to 31%. The normal exports to the European Union which are usually around 40% have dipped to somewhere around 36-37%.
The primary reason for the rise in the Indian coir exports could be attributed to a staggering rise in exports to China, the main rival and neighboring country of India. The sudden hike in the Chinese demand has proved to be of great relief and is helpful in this difficult and depressing time.
The exports of coir products to China soared nearly three times from the normal amount in the current fiscal year whereas the traditional export markets posted flat growth. Exports to other leading coir importers such as Malaysia remained flat.
However, the Indian exports of coir products have slumped thanks to the slowdown in the US and European economies. Global credit crisis have forced these economies to cut down coir import. However, with the dollar getting stronger against the Indian rupee, exporters see possibilities of cutting rates and recovering their losses.
According to a Research Analyst at RNCOS,”The global demand for coir rope, particularly the ones blended with jute, plastic or rubber, has increased more than twofold. As India produces about two third of the global coir fiber, the incorporation of coir fibers with the civil engineering industry is believed to give rich dividends to the nation’s export income within the next ten years.
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