Kerala Finance Minister TM Thomas Isaac in the State Budget announced revival package for the coir sector will boost coconut fibre production, create more jobs and help in attaining self-sufficiency. In his budget speech conveyed government intention of implementing a second restructuring of the coir industry as the State is importing fibre from other states to meet its needs, the schemes announced will boost fibre production and coir. Also a one-time settlement scheme will be implemented, after discussing with banks, for those coir cooperative societies that are facing crisis due to the loan arrears. In the Budget, Rs. 211 cr has been earmarked for the coir industry. One thousand mills will be set up for transforming at least Rs. 200 cr coconut husk — a third of total coconut production in the State — into fibre.

Coirfed will procure the fibre from these mills and make available to the cooperative societies assuring a daily wage of Rs. 600 to those working in these mills. Besides, 1,000 automatic spinning machines will be installed in the coir-spinning sector. Coir will be converted into geo-textiles. A marketing company will be set up with private partnership for the sale of coir products. To transform the cooperative societies into modern factories, automatic looms, semi-automatic looms, tufting machines, needle felting machines and composite machines will be deployed.