Executive Summary:
This document presents the Indian government's response to concerns regarding the decline of Kerala's traditional export sectors, specifically coir and cashew. It details government initiatives to support these industries through financial assistance, technology upgrades, and skill development programs. The response includes export data for 2024-25 and outlines existing schemes and support mechanisms available to exporters and related businesses.
Key Points / Main Content:
* **Export Performance:**
* Coir exports in 2024-25 reached USD 377.98 million, a 32.30% increase from USD 285.69 million in 2023-24.
* Cashew exports in 2024-25 totaled USD 338.21 million, comparable to USD 339.2 million in 2023-24.
* **Financial Assistance (APEDA):**
* The Agricultural Processed Food Products Export Development Authority (APEDA) offers financial assistance to member exporters, including cashew processors, to upgrade technology.
* Assistance covers advanced technologies like automated nut cutting, shelling machines, sorting/grading lines, and color sorting systems.
* APEDA provides enhanced assistance (up to 75% of the total cost, capped at Rs. 2.00 Crores) to SC/ST and women entrepreneurs.
* **Coir Vikas Yojana (CVY):**
* The Ministry of Micro, Small Medium Enterprises implements the Coir Vikas Yojana (CVY) for sustainable coir industry development.
* CVY includes R&D, skill development, women's empowerment, modernization, and market promotion.
* Over 21,000 coir units are registered on Udyam under CVY, employing approximately 2.3 lakh people since 2014-15.
* CVY facilitated training for over 64,000 individuals (including 30,000 women) and supported participation of about 1,000 exporters in international exhibitions with over Rs. 18 crores in financial assistance.
* **Prime Minister's Employment Generation Programme (PMEGP):**
* Over 3,700 new coir units were established under PMEGP with approximately Rs. 176 crores in financial assistance, generating employment for around 30,000 individuals.
* **SFURTI Scheme:**
* The Ambalapuzha Coir Development Society in Alappuzha, Kerala, received financial assistance of 79.74 lakhs under the SFURTI scheme.
* **SEZ Proposals:**
* No proposals for setting up Special Economic Zones (SEZs) in Alappuzha and Ernakulam districts have been received by the Central Government.
* **Export Incentives:**
* Enhancement of remission rates under RoDTEP is considered after sectoral analysis by the RoDTEP Committee.
* The Interest Equalisation Scheme is currently not operational.
Impact Analysis:
* **Coir and Cashew Exporters:**
* Impact: Beneficiaries of financial assistance for technology upgrades and market promotion.
* Action Required: Utilize available schemes (APEDA, CVY, PMEGP, SFURTI) to enhance competitiveness and explore export opportunities.
* **MSMEs and Cooperatives in Coir and Cashew Processing:**
* Impact: Access to support for modernization, skill development, and market access.
* Action Required: Register under Udyam and participate in relevant programs to avail benefits under CVY and PMEGP.
* **Workers (Especially Women and Marginalized Communities):**
* Impact: Enhanced employment opportunities through new unit establishments and skill development programs.
* Action Required: Participate in training programs to improve skills and employability in the coir and cashew sectors.
* **Government (Ministry of Commerce and Industry, Ministry of MSME, Coir Board, APEDA):**
* Impact: Responsible for implementing and monitoring support schemes and policies.
* Action Required: Continue to assess the impact of existing schemes, consider proposals for SEZs, and evaluate requests for enhanced export incentives.
Key Entities Referenced
Kerala: State in India with traditional export industries like coir and cashew facing decline.
Alappuzha, Kerala: District in Kerala known for coir and cashew industries, mentioned in the context of SEZs and industry decline.
Kollam, Kerala: District in Kerala known for coir and cashew industries, facing challenges like international market volatility.
Coir Board: Organization implementing Coir Vikas Yojana (CVY) under the Ministry of Micro, Small Medium Enterprises.
Coir Vikas Yojana (CVY): Scheme implemented by the Coir Board for the overall and sustainable development of the coir industry in India.
RoDTEP Committee: Committee responsible for examining requests for enhancement in remission rates for particular sectors after sectoral analysis.
Agricultural Processed Food Products Export Development Authority (APEDA): Authority under the Ministry of Commerce Industry providing financial assistance to member exporters of food processing units, including cashew.
Prime Minister's Employment Generation Programme (PMEGP): Programme under which new Coir units have been established with financial assistance.
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT OF COMMERCE
LOK SABHA
UNSTARRED QUESTION NO. 3831
ANSWERED ON 12/08/2025
REVIVAL OF KERALA’S TRADITIONAL EXPORT SECTORS
3831. SHRI KODIKUNNIL SURESH
Will the Minister of COMMERCE AND INDUSTRY (वाणिज्य एवं उद्योग मंत्री) be pleased
to state:
(a) whether the Government is aware of the continued decline of Kerala’s traditional
export industries such as coir and cashew, especially in regions like Alappuzha and
Kollam, due to international market volatility, reduced global competitiveness and lack
of modernization in production and processing infrastructure, if so, the details thereof;
(b) the steps taken or proposed by the Government to support value addition, branding
and technological upgrading in the coir and cashew sectors to improve export earnings
and livelihoods of workers, especially women and marginalized communities
employed in these industries;
(c) whether any new SEZs, export facilitation centres or common facility centres are being
planned or sanctioned in Alappuzha or Kollam districts to support MSMEs and
cooperatives engaged in coir and cashew processing and export, if so, the details
thereof; and
(d) whether the Government will consider enhancing export incentives under the RoDTEP
and interest equalization schemes for MSMEs in the coir and cashew sectors,
particularly in Kerala, to improve global competitiveness, if so, the details thereof?
ANSWER
वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री (श्री णिणिन प्रसाद)
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(SHRI JITIN PRASADA)
(a) to (d): The export of coir in 2024-25 was USD 377.98 million which was 32.30 % more
than the export of coir in 2023-24 i.e. USD 285.69 million. The export of cashew in 2024-25
was USD 338.21 million, almost equal to USD 339.2 million in the year 2023-24. (Source:
DGCIS)
Agricultural & Processed Food Products Export Development Authority (APEDA) under the
Ministry of Commerce & Industry, through its financial assistance scheme provides
assistance to member exporters of food processing units of APEDA scheduled products,
including cashew. To upgrade traditional processing methods and improve export
competitiveness, financial support was extended to exporters of Kerala for the adoption of
advanced technologies, fully automated nut cutting and shelling machines, sorting and
1grading lines and automated colour sorting systems. Further, for APEDA’s beneficiary
exporters, belonging to SC/ST category and Women Entrepreneur, assistance upto 75% of
the total cost, subject to a ceiling of Rs.2.00 Crores per beneficiary/exporter is provided.
Ministry of Micro, Small & Medium Enterprises, through Coir Board, is implementing Coir
Vikas Yojana (CVY) formulated with the objective of overall and sustainable development of
coir industry in India. It includes a wide range of activities such as Research & Development,
skill development of artisans, women empowerment through modernization, upgradation and
establishing new units, promoting the domestic as well as export market and providing of
trade & industry related functional support services.
Under CVY, more than 21,000 coir units are registered on Udyam providing employment to
about 2.3 lakh persons since 2014-15. More than 64,000 persons and 30,000 women were
trained and participation of around 1,000 exporters was facilitated in international exhibitions
abroad with the financial assistance of more than Rs. 18 crores. Further, under Prime
Minister's Employment Generation Programme (PMEGP), more than 3,700 new Coir units
have been established with a financial assistance of around Rs. 176 crores, providing
employment to around 30,000 persons.
The Coir Cluster, namely the Ambalapuzha Coir Development Society in Alappuzha, Kerala,
under the SFURTI Scheme, has been sanctioned and Ministry of Micro, Small & Medium
Enterprises has provided financial assistance of ₹79.74 lakhs to the coir cluster. At present,
no proposal for setting up of a SEZ in the districts of Alappuzha and Ernakulam has been
received by the Central Government.
The enhancement in remission rates for particular sector is taken up by RoDTEP Committee
post examination of such requests from said industries after sectoral analysis of the duties/
taxes/levies at the Central, State and Local level, borne on the exported product. The Interest
Equalisation Scheme is not operational as of now.
*****
2