Kerala’s Coir Sector Suffers 95% Cut in Union Government Support

Web desk

Published on Aug 12, 2025, 04:58 PM | 3 min read

New Delhi: Kerala’s coir industry, a lifeline for thousands of traditional workers especially women workers which had also widely hailed as the backbone of the state’s rural economy, is facing a massive decline in union financial support. Data provided in Parliament in response to a question by Dr. V. Sivadasan, MP, reveals a near-complete erosion—over 95%—in Kerala’s share of union assistance for the coir sector over a five-year span.

Referred as the "golden fibre" of India, coir holds both cultural and economic significance in Kerala. The state contributes more than 85% of the country’s total coir production, making it the undisputed epicenter of the industry.

Under the Coir Vikas Yojana (CVY), a central scheme designed to promote coir development, the allocation for Kerala was Rs. 1,375 lakh in 2020–21. This figure has plummeted to a mere ₹113 lakh in 2024–25—an alarming 91.78% reduction.

The Prime Minister’s Employment Generation Programme (PMEGP), another key initiative supporting small-scale industrial units including coir, has seen an even sharper drop. Kerala’s share under PMEGP fell from Rs. 171 lakh in 2020–21 to just Rs. 4 lakh in 2024–25—a 97.6% decline.

At the national level, allocations for coir under CVY fell from Rs. 2,094 lakh in 2020–21 to Rs. 609 lakh in 2024–25, a 71% decrease. Under PMEGP, the coir sector's overall funding dropped from Rs. 3,560 lakh to Rs. 699 lakh in the same period—a roughly 80% cut.

Responding to the figures, Dr. Sivadasan accused the union of turning its back on one of India’s most labour-intensive and eco-friendly traditional industries.

“This is a deliberate and ruthless betrayal of the workers who depend on coir. It’s clear that the Union Government is making a concerted effort to dismantle every sector that supports rural India. The neglect towards the coir sector is not accidental—it is ideological,” he said.

Dr. Sivadasan argued that traditional industries like coir are not just economic engines, but vital social safety nets in states like Kerala, where they provide sustainable livelihoods for thousands, especially women in coastal regions.

The significance of Kerala's coir sector extends far beyond production metrics. Coir represents a legacy—of craftsmanship, sustainability, and decentralised industry rooted in local economies. It is one of the few sectors where traditional knowledge systems blend seamlessly with employment generation and eco-conscious practices.

For a government that frequently advocates for "Vocal for Local" and Atmanirbhar Bharat, the reality on the ground tells a different story. Without meaningful intervention, one of India’s most iconic rural industries could soon find itself on life support.