The Federation of Indian Coir Exporters Associations (FICEA) has urged the government to intervene to resolving the crisis that has arisen following the 50 per cent tariff imposed by the United States on coir imports from India.
FICEA chairman Roby Francis and secretary general Sajan B. Nair pointed out that the present crisis needed to be treated as an “emergency” as the sudden and steep tariff increase has severely impacted the competitiveness of coir products in the US market. The industry cannot afford a standstill situation, as any delay will result in irreparable damage, the association said in a letter to the State Industries Minister P. Rajeeve.
Noting that coir products are highly seasonal, FICEA said that if shipments – especially those meant for Christmas and New Year – were not executed immediately, the finished goods would turn into dead stock, leading to massive financial strain on manufacturers, exporters and allied sectors.
The impact is not only financial but also social. The cancellation and suspension of orders and the stoppage of production will inevitably lead to large-scale layoffs. A significant percentage of our workers — many of them women from rural areas — depend entirely on this seasonal industry for their livelihood. Moreover, with Onam and the festive season fast approaching, a slowdown in production will result in job loss. Thousands of families will be directly affected, causing severe socio-economic and financial distress, FICEA said.
The Association requested for State government assistance to reduce immediate costs and sustain operations, along with making strong representations to the Union government to ensure maximum financial and policy support.
It urged the Union government to provide export subsidies, particularly for shipments to the USA and to initiate discussions on a Free Trade Agreement and Bilateral Trade Agreement between India and the United States to arrive at a solution. FICEA also requested the State government to provide a transport subsidy for the movement of raw materials within Kerala and for exports shipped from Kochi to US ports.