Government Considers Amendments To Coir Industry Act To Modernise Sector

New Delhi, Nov 9 (KNN) The government is considering amendments to the Coir Industry Act, 1953, to modernise the sector, expand product coverage and simplify regulatory compliance for enterprises, according to reports.

Government Considers Amendments To Coir Industry Act

The Ministry of Micro, Small and Medium Enterprises (MSME) has initiated discussions on revising the Act, which governs an industry employing more than 7.5 lakh people.

The proposed changes are expected to broaden existing product definitions to include newer coir-based materials and applications, while reducing procedural delays and paperwork for businesses.

Coir exports rose 52 per cent to Rs 6,614 crore in FY26, compared with Rs 4,343 crore in FY25, marking a record high. The industry is largely concentrated in southern India, with women accounting for around 80 per cent of workers engaged in fibre extraction and spinning.

India exports coir products, including mats, pots, fibre and handicrafts, to markets such as the US, China, the Netherlands and Spain, reported The Mint.

Industry Seeks Wider Product Coverage And Easier Compliance

Industry representatives have called for expanding the Act's coverage to include products such as coir pith, cocopeat, husk chips, growing media, geotextiles and composites.

Vinod Kumar, president, India SME Forum, said the amendments should clarify the status of newer materials and ensure eligible enterprises can access government support.

He also called for a single digital interface to simplify compliance, alongside shared facilities for processing, drying, grading, testing and water treatment. Improved access to working capital and stronger buyer linkages were also identified as key requirements.

Coir Products Seen As Sustainable Industrial Alternatives

Experts have highlighted the potential of coir as a sustainable alternative to synthetic fibres in applications such as mattresses and ropes.

Gurudas Nulkar, professor and director, Centre for Sustainable Development, Gokhale Institute of Politics and Economics (GIPE), said coir products could gain wider commercial applications due to their natural properties. 

He also highlighted the industrial potential of coconut shells in activated carbon and biochar production.

Export Growth Needs To Benefit Farmers And Small Producers

Nulkar stressed the need to ensure that export growth translates into better earnings for coir farmers and workers, helping strengthen domestic demand.

Kumar also pointed to export-related disruptions, citing a backlog of export-ready coir products worth Rs 200 crore in March 2026, which affected artisans and smaller producers.

(KNN Bureau)