India has a long coastline dotted with coconut palms, the growth of coir industry in other coastal States has been insignificant. Not more than 28 percent of the coconut husks are utilized in the coir industry, the remaining being used as fuel or as waste material in rural areas. Productions in the cooperative fold and in the private sector are not encouraging too. The already undertaken development programs aimed at the revitalisation of coir cooperatives, the creation of entrepreneurship, quality improvement, and diversification product ranges. 

Since the development of the coir sector contributes towards the sustainable development agenda in terms of the creation of environment-friendly products, its application for domestic use along with the usage in housing, building, agriculture, horticulture, and infrastructure production are significant. The world population is becoming more and more conscious about the need for preserving nature with an increasing number of people opting for environment-friendly products. 

Coir Industry has developed on a large scale only in India and Sri Lanka. These two countries are the largest producers and exporters of coir. Owing to fundamental differences in economic conditions governing coconut cultivation and coir extraction and those necessary for coir production many of the large coconut producing countries viz. Philippines, Indonesia, Malaysia, and Thailand have only relatively small coir output.

India is the major producer of coir among the coir producing countries in the world. Of the total world output, India's share is about 56%. About one - fifth of the total production of coir yarn goes for the manufacture of value-added products, namely, doormats, mattings, etc. While 60% of the production of finished products is exported, the domestic market consumes the balance.

• Micro-enterprise - Investment in plant and machinery does not exceed Rs. 25 lakh




• Small enterprise - Investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore




• Medium enterprise - Investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore

Service Enterprises:-The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment.

In the Service sector micro, small and medium enterprises are determined by the investment in plant and machinery

• Micro enterprise - Investment in equipment does not exceed Rs. 10 lakh




• Small enterprise - Investment in equipment is more than Rs.10 lakh but does not exceed Rs. 2 crore




• Medium enterprise - Investment in equipment is more than Rs. 2 crores but does not exceed Rs. 5 crore.

Benefits of MSME Registration

• Collateral Free Loans to MSMEs




• Credit Linked Capital Subsidies for MSMEs




• Eligible for Industrial Promotion subsidy




• It provides a 50% subsidy on Patent registration




• MSME certificate allows 1% exemption on the interest rate on overdraft




• Reimbursement of ISO Certification charges




• Manufacturing and Service MSMEs shall be considered as the same entities




• Market assistance from the government and Export Promotion




• Customers can recognize an enterprise easily if it is registered as an MSME




• Technology and quality up-gradation support to MSMEs

The State, with its positive ecological setting, a plentiful supply of coconut, and gifted work has given the conditions important to its development, improvement, and advancement. The business pulls in significant budgetary support every year from the State and the Central Governments and is likewise a huge worker of income through export. 

The industry is comprised of fiber making, yarn making, mats and mattings, rubber-backed mats, synthetic backed mats, rubberized beds, and various other useful products. 

 About 76% of the complete coir societies in India are situated in Kerala. 93% of individuals and 74% of the workforce belong to Kerala. 

It consists of Exporters and large companies. In general, it can be stated that this layer is the main driving force of the coir industry in Kerala. Through efficient marketing in foreign countries, they earn foreign exchange as well as promote production in the other layers. For, the coir industry is market-driven and it keeps on being in the buyers‟ market. 

The reason for loss or low margin of profit is due to the manipulated dynamics of the market. When the price of coir increases in the internal and international markets, the private traders correspondingly increase the price of husks thereby reducing or neutralizing the profit due to the production units. The traders get the benefit. 

For historical and geographical reasons, Kerala ranks first in coir production. Kerala was the significant focus of coir creation in the nation by virtue of the accessibility of a huge amount of raw materials, that is, coconut husks. In addition, due to the wealth of normal retting facilities with extended coastal areas and lagoons, Kerala alone represented over 85% of the complete creation in the nation against, accordingly, the Coir Industry has taken profound root in this state.