Indian Economy News

From Coconut Husk to Enterprise: How Coir is transforming Rural lives

What begins as coconut husk is increasingly becoming a source of enterprise, employment and livelihood across India's coconut-growing regions. Coir, a natural, durable and eco-friendly fibre, has supported rural communities for generations and is now being converted into value-added products such as mats, ropes, handicrafts, bio-fertilisers and eco-friendly packaging solutions. With support from the Ministry of Micro, Small & Medium Enterprises (MSME), particularly through the Coir Board and the Prime Minister's Employment Generation Programme (PMEGP), the sector is creating new opportunities for self-employment and women-led enterprises. Ms. Allam Gowthamy established Adigo Coir Products in Andhra Pradesh in 2024-25 with a project cost of Rs. 10 lakh (US$ 11,565), supported by a Rs. 6.50 lakh (US$ 7,517) bank loan and PMEGP assistance. The enterprise now produces doormats, ropes, decorative dolls and handicrafts, recording an annual turnover of around Rs. 35 lakh (US$ 40,476.5) and a profit of approximately Rs. 10 lakh (US$ 11,565). It also provides direct employment to six women, while Ms. Gowthamy has trained nearly 120 women in coir-based activities.

The sector is also creating opportunities through innovative applications of coir waste. Mr. P. Surendran established Sampoorna Plus Agro Fertilizer Enterprises in Kerala in November 2024, producing coir pith bio-fertiliser with training and technical support from the Coir Board and Central Coir Research Institute (CCRI). The enterprise has sold more than 20 tonnes of bio-fertiliser, built a customer base of over 500 and generated a turnover of Rs. 13 lakh (US$ 15,034.1), with a profit of Rs. 4 lakh (US$ 4,626) in FY2024-25. India is the world's largest producer of coir and accounts for more than 80% of global coir fibre production, while women constitute nearly 80% of those engaged in fibre extraction and spinning. The Coir Board, a statutory body under the Ministry of MSME, supports skill development, technology, research, market promotion, exports and worker welfare through initiatives including the Coir Vikas Yojana. Innovations such as eco-friendly coir rail wheel axle packaging cups are further expanding the fibre's applications, demonstrating its potential to support sustainable production, rural employment and higher-value enterprises.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.