Chapter VII

INDICATORS AND CHARACTERISTICS OF TECHNOLOGICAL CHANGE IN THE

COIR INDUSTRY OF KERALA

The Production function approach to technological change as mentioned in the

chapter 5 is arbitrary. So to measure the technological change that has taken place in the

Coir Industry of Kerala , the researcher uses the "indicators" and "Characteristics" of

technological change viz. (1) increase in the mechanisation of industry, (2) increase in

the number of skilled and educated labour force employed in the industry, (3) Progressive

improvement in the infrastructure and increase in the expenditure for coir development,

(4) changes in productivity, (5) changes in employment, (6 ) changes in income and (7)

changes in dwelling conditions.' Let us analyse these changes in details.

7.1 Increase in the mechanisation of Coir Industry:-

Coir Board through its research and development efforts designed and

developed a large number of machines for different process in Coir Industry.

(see chapter 6, Research and Development). Now we can analyse the extent

of machanisation in various process of Coir Industry.

7.1.1 Fibre Extraction:-

The traditional method of extracting coir fibre was purely manual. Here, after

retting, the husks were taken out and washed. The inner short fibre and outer

skin of well soaked husks were removed by hand beaten with a wooden mallet

' Stewart, Francis (June 1982): "A Note On Comparative Studies o f Technological Change, Methodology And Theory", University Of Lund, Lund, PP.4-8. Some of these indicators has been adopted by Debesh Bhattacharya (1972); "The Role Of Technological Progress In Indian Economic Development", The World Press Private Limited, Calcutta,

against a log to thrash out the non-fibrous tissue. The fibre thus separated was

cleaned further by hand, washed if necessary and dried in the shade with

occasional light. Then beating with stide to remove the remnants of pith and

impurities still left with the fibre.2 From 1964-65 the extraction of fibre by hand

beating was replaced gradually by the introduction of a simple mechanical

process, that is, the husk beating machine^.^ Now the manual defibering has

completely disappeared from Kerala.4 Another innovation in this field was the

spread ofthe Kerala Drum, resembling the Ceylon drum for the extraction of

fibre during 1960's.The machine consisted of a spiked metallic cylinder and

two metallic rollers, all connected by a gear system and driven by electronic

motor? From the end of 1960's onwards, the spiked drum method was replaced

by a version of the decorticating machine known as kottuvadi or beating rods6

It could process only retted husks. Another type of machine used for the fibre

extraction was the retted husk decorticators. Green husk combing machine is

another alternative which is used to extract the fibre green husk. Details of

defibering mills as on march 2001 is furnished in the table 7.1.

Varkey, V . 0 (1981): "Development and Working of Coir Co-operatives in Kerala", Poona, P.47. Pylee, M.V (1976): "A Study of Coir Industry in India-Problems and Prospects" (1975), Coir Board, Cochin, P.8. The field survey conducted by V. Rajan (Socio-Economic Aspects of Coir Co-operatives of Kerala.1994)in Kayamkulam project area and K.T. Rammohan (Technological Changes in Kerala Industry: Lesson from coir yam spinning -1999 ) in Kollam districts and field enquily made by the research in various coir producing centres. Isaac Thomas. T.M, Stuijvenberg Van P.A, and Nair.K.N (1991): "The Coir Industry in Kerala-A study of Modemisastion and Employment Protection", Coir Board, Kochi, PP.124,125.

Ibid.

Table 7.1

Number of De-fibering Machines in Kerala in March 2001

Source: 1 ) Coir Board, Annual Reports o f Various years 2 ) Coir Directorate, Unpublished data.

The retted defibering mills are mainly using Kerala Drums owned by the

private entrepreneurs. Those defibering mills which are set up under

Integrated Coir Development Project comes to the second category and

those units which are financed by coir board under Brown fibre development

comes in the third category.

-

Number

500

58

28

S1.No.

1

2

3 ?

Over and above these defibering mills in Kerala , there are an average five

numbers of Ginning mills in villages having canals, lakes and lagoons.'These

Ginning mills used to ginn the brownlgreen husks fibre brought from Tamil

Nadu for further process.

Items

Retted Defibering mills Under Private Sector

De-fibering mills under Co-Operative Societies

Defibering mills under Private Sector

7.1.2. Spinning of Coir Yarn:-

Traditionally spinning is done by hand. In this method, spinning is done by

twisting the fibre between the palms of the hand. In hand spinning, usual method

is to roll the fibre in to short length, giving a clockwise twist by hand. When a

sufficient quantity has been made, two of these short lengths are taken in hand

together and made yam of two piles by giving a counter twist, using both palms.

' This information is obtained from License Fee Demand Registers o f Various Panchayat Offices.

When the counter twist reaches near the end of the striking, further pieces of

short length kept ready are added are after other, while the counter twist by

hand is continued till the required length of yarn for a knot is rea~hed .~

An important innovation that was adopted in the handicraft technology with the

expansion of production was the introduction of the spinning wheel or ratt in the

latter half of 1 9Ih cen t~ ry .~

Machine spinning with automatic feeding mechanism, treadle ratt spinning,

motorised spinning and motorised traditional ratt are the type of machines

used for spinning the yarn in modem times in Kerala. Through Integrated

coir Development Project (ICDP) 200 motorised treadle ratt unit was set

up in 100 primary coir co-operative societies in Kerala. The details of

various spinning machines used in Kerala as on March 2001 was given in

the table 7.2.

Table 7.2.

Details of Equipment used in spinning sector

Source: I ) Kerala Statistical Institute (March 1997):Survey of Coir Industry in Kerala, P.22 2) Coir Board, Annual Reports of Various years

Type of Equipments

1. Traditional Ratt 2. Motorised Ratt

(a) Co-operative Societies (b) Private Sector Under Mahila Coir Yojana

3. Automatic Spinning Machine

Unnithan Bhaskaran, K (1970): .' Coir Industry in India with Special Reference to Marketing and Trade", Coir Board, Cochin, P.18.

Isaac Thomas,T.N. (1990): "Evolution of Organisation of Production in Coir Yam Spinning Indushy", Working Paper 236, Centre for Development Studies, Thiruvananthapuram, P.1.

Number

44,266

12,500 1,072

28

7.1.3. Manufacturing of Mats and Mattings:-

As most ofthe coir product manufactutingunits are small scale and cottage, handloom

weaving predominate this sector. There are some defects in the actual process of

weaving coir products on traditional looms such as buckling of mattings, variations

in the number of pick per unit area of the same fabric and poor texture due to

relatively low number of Pile row in mats. The R and D activities at Central Coir

Research Institute (CSRI )have been quite successful in tackling some of these

problems. So an improved hand loom can be used in the industry. Still some of the

problems of traditional weaving continue.

During 1960's under a scheme to machanise one third of the matting capacity,

automatic power- loom weaving was adopted as an alternative to the hand

10oms.'~ The power - loom industry employs all the major types of coir

power-looms, like excentre looms, shaft looms and jacquard looms etc. for

the production of mattings as well as creel mat power-looms.

The improved hand loom would facilitate the elimination of some of the

defects of the traditional looms, though it cannot achieve the quality

improvement which would be possible through semi- automatic looms. The

introduction of semi- automatic loom is the result of the research and

development effort made by the CCRI. Thus there are three alternation to

the traditional handlooms coir weaving method namely improved hand loom,

semi- automatic looms and fully automatic power- looms.

The table 7.3 gives the number and value of equipment used in coir

establishment during 1997.

' O Isaac Thomas. T.M, Stunjvenberg Van P. A and Nair, K.N (1991): "The Coir Industry in Kerala- A Study of Modemisation and Employment Protection", Coir Board, Cochin, P.148.

Table 7.3

Details of Equipment used in Spinning Sector

Value- Rupees in lakhs Number of looms is mentioned in brackets

Sector

Manufacturing Co-operative Societies

Factories Under 2M

Factories Under Sec.85

Small scale Factories

Total

Source: Kerala Statistical Institute, (March, 1977) :Survey of Coir Industry in Kerala, P.54

The power - loom capacity in Kerala as on march 2001 was given in the

table 7.4

Power loom

90.51 (103)

-

90.51

Spray Painting machine

2.63

2.63

Others

10.02

503.73

158.62

115.7

788.07

Hand loom

138.99 (1800)

86.1 (867)

23.22 ( 186)

813.86 (15884)

1062.2 (18737)

Shearing machine

17.27

17.27

Sten- cilling

machine

6.26

6.26

Dyeing Unit

machine

10.56

26.51

24.37

61.44

Spooling machine

49.5

0.04

6.13

55.67

Pressing machine

8.33

8.33

Table 7.4

The Power- loom Capacity in Kerala as on march 2001

Source: 1) Coir Board, Unpublished source 2) Data collected directly from large manufacturer exporters by the researcher.

S1 No.

1 2 3 4 5 6 7 8 9 10

Apart from power-loom or hand loom, some of the items of machinery used

by different types of units are thermo fluid heater, drier, motorised dyeing

Name of Manufacturers

Kerala Balers Alleppey Company Aspinwall Company William Goodacre and Sons India Ltd J.R. Export Industries Alleppey N.C.John and Sons Ltd. TAC Floor Company Travancore Mats and Matting Company Hindustan Coir'l Foam Mattings India Ltd.

Total

plant, rubber edging machine, latex mixer, spooling machine, compressor,

No. of Power- looms Owned

15 49 06 10 0 1 15 38 10 06 03

153

glowing machine, spray plant, bundling machine, pressing machine, shearing

machine etc. Semi- mechanised means units own shearing , compressor,

stenciling, finishing machine, combing machine, glowing machine, edging

machine, power press etc. The number. of semi- mechanised units in different

sectors are given in table 7.5

" Hindustan Coir was the first Power loom coir matting factory set up by the Coir Board in 1969. It is the pioneering effort of the board for introduction of gradual mechanisation of the manufacturing process and development of the industry on modem times. Beginning with the import of 5 looms with ancillary winding machines the factory went on to acquire more sophisticated looms like dobby and jacquard loom. The details of the looms installed by the factory is Ordinary loom 1 mtr width 1 No., 1.5 mtr width I No. and 2 mtr width 2 Nos. Jacquard loom I mtr width I No. Dobby loom 2 mtr width 1No.

Table 7.5

Semi-mechanised coir manufacturing units in different sector

Source:- UNDP Project on 'Technology Transfer, Modernisation and Capacity building in the Indian Coir Sector, Coir Board, Kochi, May 2000, P.36.

SI No.

1.

2.

3.

Apart from these, the Kerala State Coir Corporation Limited installed a

semi- automatic loom with a project cost of Rs. 6.35 lakhs during

1 994-95.12 The corporation is still producing coir mattings on the semi-

automatic loom.

7.2. Increase in the Number of Skilled and Educated Labour-Force

Employed in the 1ndust1-y.'~

Name of the Sector

Co-operative sector

Small scale sector

Large manufacturer/ Exporters

Technological progress requires skilled and educated manpower. Similarly,

with technological progress, the educated and trained manpower in the

industry also increase. The table 7.6 and 7.7 show the educational status of

the coir workers for various years.

No.of semi-Mechanised units

8

47

40

l 2 Government of Kerala, State Planning Board (1995): " Kerala Economic Review", Thiruvananthapuram, P.98.

" This indicator has been adopted by D. Bhattacharya (1972)in his book " ~ h e ~ o l e of Technological Progress in Indian Economic Development", P.26.

Table 7.6

Educational Status of the Coir Workers in Kerala in 1988 and 1997:-

Source:- 1 ) Government o f Kerala (I990):Report on coir workers census in Kerala 1988, Department of Economics and Statistics, Thiruvananthapuram, P.13.

Level of Education

Illiterate Below S.S.L.C Above S.S.L.C Graduate and above

2 ) Kerala Statistical Institute (March 1997):Survey of Coir Industry in Kerala, P.68

Table 7.7

Educational Status of the Coir Workers in three Cluster Area

Percentage change over 1988

55.72 17.11 17.24

-

Year 1988

23.83 70.95 5.22

-

Source: I ) Government of Kerala (I988):Report on coir workers census in Kerala, Op.cit., P.13.

2) Coir Board (May 2001): UNDP Project on the Base Line Survey of coir clusters, Centre: Thiruvananthapuram, Prepared by Tata Economic Consulting Service, P.5.

3) Coir Board (May 2000):UNDP Project on the Base Line Survey of Coir Cluster, Centre: Kollam, Prepared by Tata Economic Consulting Service, Coir House, Kochi, P.6.

4) Coir Board (June 2000):UNDP Project on the Base Line Survey o f Coir Cluster, Centre: Alappuzha, Prepared by Tata Economic Consulting Service, Coir House, Kochi. P. 1 1.

1997

10.55 83.09 6.12 0.24

Level of Education

- Illiterate

Be1owS.S.L.C

S.S.L.C and Above

Graduate and Above

The table 7.6 and :7.7 reveal that the literacy rate of the coir workers are

increasing. The percentage decline in the illiteracy rate from1988 to1997 was

Cluster Areas

55.72. The percentage decline in the illiteracy rate in Thiivananthapuram cluster

area from 1988 to 2001 was 46.76 and in Kollam from 1988 to 2000 it was

Thiruvananthapuam 1988

33.81

48.55

15.68

1.96

Kollnm May-Ol

18

33.6

47.7

0.7

1988

23.49

62.45

12.39

1.67

Alappuzha %Change over 1988

46.76

30.79

204.2

64.29

1988

20.42

71.45

7.2

0.93 1

May-00

19.6

30.1

48.5

1.8

June-00

P

28.7

45.2

0.1

%Change over 1988

16.56

5

291.45

7.78

%Change over 1988

7.9

59.83

527.77

89.25

1 6.56.14 But in Alappuzha there is a marginal rise in the illiteracy rate. Similarly

percentage of coir workers having educational status above SSLC also increases

considerably during these periods. In Kerala as a whole from 1988 to 1997,

the percentage increase was 17.24 and in cluster areas it was 204.20,291.45,

ansd 527.77 in Thiruvananthapurarn, Kollam and Alappuzha respectively. The

number of coir workers possessing graduation also found to increase during

these periods. On an average, now 50% coir workers are literate with SSLC

and above.

Skill development is identified to be the most important input of development

effort through state intervention. Hence the coir Board organises appropriate

training programmes for coir workers. The Coir Board through its training

centre and field extension centres trained 98 17 persons through its various

programmes conducted up to march 2001.'5 Rest of the workers of this

industry are getting only in house training. The cluster area study conducted

by the Tata Economic Consultancy service reveals that in Alappuzha for

small scale production units, training is fully in house and only 15% of

units received training from external sources and 13% only from Coir

Board.I6 The increase in the percentage of educated persons employed and

generation of more and more skilled and trained workers indicate the

technological potential of this sector.

7.3. Infrastructural Improvement And Expenditure Incurred:-

As coir industry involves different process, it required very large infrastructural

" As Alappuzha, Kollam and Thiruvananthapuram districts of Kerala dominate in coir indushy, for comparison of educational level, monthly income and housing conditions of coir workers over different periods, the researcher consider these three districts only.

" See chapter 6, table 6.1

' Coir Board (2000): UNDP Project on " Technology Transfer, Modernisation and Capacity Building in the Indian coir sector", Coir House, P.58.

3 1 3

improvement and it took place considerably in the industry. The outlay and

expenditure for coir development increased continually over the years. The major

programmes for coir development viz. modernisation of the industry, research

and development, training, co-operativisation of coir industry etc. were financed

by the Central and State Government and with the assistance from National

Co-operative Development Corporation (NCDC), UNDP etc.

The following schemes for the development of infrastructure directly or indirectly

help technological progress in the Coir Industry.

7.3.1 State Development Schemes:-

Government of Kerala formulated an yearly programme known as 'Coir

Development Scheme' with the objective of revitalisation or modemisation

of Coir Industry. Through the scheme it provides assistance to coir

co-operatives (in the form of share capital contribution, working capital

loan, interest subsidy, grant in aid, godown subsidy and loans, loans for

opening of sales depots, loans for restructuring of coir co-operatives, grant

and loans for purchase or modernisation and renovation of ratt, looms and

other equipment etc.), formation of coir project investment, investment on

Kerala State Coir Corporation and Foam mattings (India) Ltd, investment

on coir-fed, state share for central scheme of co-operativisation, loans for

coir development, setting up of raw material banks, implementation of ICDP

etc. Government of Kerala implemented these programmes through the

Directorate of Coir Development .For these purpose, the government of

Kerala have provided a separate budgetary allocation for the coir sector.

The year-wise budgetory allocation and utilisation of funds from 1970-71

to 2000-2001 are given in the table 7.8 below.

31 4

Table 7.8.

Budget Allocation for Coir Development from 1970-71 to 2000-2001

Source: I ) Government of Kerala, Explanatory Memorandum on the Budget (Various Issues), Printed by S.G.P. Thiruvananthapuram.

2) Coir Board, Annual Report of Various Years. 3 ) - sign indicate decrease 4 ) NA-Not Available

Year

1970-7 1 197 1-72 1972-73 1973-74 1974-75 1975-76 1976-77 1977-78 1978-79 1979-80 1980-8 1 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-0 1

Budget provision (Rs.lakhs)

57.00 59.60 97.20 95.75 30.00 72.00 72.00 71.00 82.00

151.00 356.00 313.27 304.99 325.00 372.52 275.00 3 17.00 607.00 604.50 677.00 822.00 916.00 917.14

1176.90 1630.17 2624.00 3006.91 3320.50 1510.00 2275.52 2261.55

% change over previous year

- 4.56

63.08 1.49

68.67 140.00

0 1.38

15.49 84.15

135.76 12.00 2.64 6.89

14.62 26.18 15.27 91.48

.4 1 1 1.99 21.41 11.44 0.13

28.32 38.51 60.96 14.59 10.43

-54.53 50.70

-.61

Actual expenditure (Rs. lakhs)

N. A N. A N.A 80.3 1 20.40 N.A 85.18 N. A N. A

131.23 N.A

313.25 261.50 345.00

N. A 155.23 428.44 493.97 551.89 653.72

N. A N. A

917.14 N.A

1760.90 N. A N. A

3315.07 N. A N.A N.A

It is obvious from that table 7.8 that the budgetory allocation for coir development

has increased from 57 lakhs in 1970-71 to 2261.55 lakhs in 2000-2001. From

1993-94 onwards there was a considerable increase in the budgetory outlay for

coir development. Except for some years the percentage increase in the budgetory

allocation for coir development was found to be raising from 1970-71 to 2000-

2001.

The actual expenditure incurred as a percentage of budget provision from 1987-

88 to 1999-2000 reveals that it increases from 87 percent during the first four

years to 96 percent during the last four years ( 1996-97 to 1999-2000 ) See

table 7.9.

Table 7.9

Budgetory Allocation and Actual Expenditure from 1987-88 to 1999-2000

Source: Coir-fed (July2000): Coir Vyavasayam (Malayalam), Coir- fed Head Off~ce, Alappuzha, P.12.

Year

1987-88 to 1990-91 ( 4 years ) 1992-93 to 1995-96 ( 5 years ) 1996-97 to 1999-00 ( 4 years )

7.3.2 Centrally sponsored scheme for co-operativisation:-

The co-operativisation programme has been adopted as an important measure

for revitalising Coir Industry in the state. The aim of co-operativisation was to

be made the entire coir workers under the purview of co-operative sector. The

central scheme of co-operativisation in coir industry was introduced in 1982

Budget Allocation ( Rs. Lakhs )

2639.82

7420.36

11552.00

Actual Expenditure ( Rs. Lakhs )

2296.64

6868.09

11087.87

Expenditure as a Percentage

87

92

96

based on the recommendations of High Power Committee chaired by Shri. B.

Sivaraman. The scheme was in operation during the 6" and 7Ih plan and continued

to be in force thereafter in 1990-91,91-92 and 1992-93. The Ashim Chattergee

Committee appointed by the Government of India in 1990 has recommended

the continuation of the scheme during the 8Ih plan period on selective basis. The

scheme is still continuing. The scheme provides the following assistance.

7.3.2.1 Share capital assistance for existing societies and for formation ofnew societies

by way of loans to primary and product societies.

7.3.2.2 Managerial subsidies for placement of competent persons in supervisory or

managerial position in the primary and weavers co-operative societies by

way of grant for 5 years. The share capital assistance and managerial subsidy

will be shared on 50:50 basis between the state and central government,

and

7.3.2.3 Assistance for purchase or modernisation or renovation of equipment or

looms to co-operatives. The pattern of assistance is from central government

25%, state government 25% and borrowing societies 50%. The maximum

amount of assistance for primary societies is Rs. 1 .5Olakhs and composite

societies Rs. 7.51akhs . Two- third of the assistance for equipment will be

in the form of loan and 1/31d in the form of subsidy."

The details of the funds allocated for various heads under centrally sponsored

scheme of co-operativisation is presented in the table 7.10.

" Coir Board ( 1999-2000): 46* Annual Report, Coir House, Kochi, P.36.

31 7

Table 7.10

Centrally sponsored scheme of Co-operativisation

Source: Coir Board, Annual Reports of Various Years

Year

1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-200 1

7.3.3. Common Facility Centre :-

This scheme is being implemented to provide modem facilities for bleaching and

dyeing coir fibre and yam to the small scale units engaged in the manufacture of

export quality coir products. The scheme provides for grant of one time assistance

for the purpose . The services of these centres would be available to those small

scale units which situated within e radius of 2 krn of the society.

Share capital Assistance (Rs.lakhs)

48.00 50.00 7.75 2.75 79.36 40.99 25.00 50.00 34.00 1 1 .OO 14.00 43.73 46.77 57.76 35.00

- - 64.35 64.35

Two co-operative societies, Alleppey small scale coir mats manufacturers

co-operative society and Aryad Block small scale fibre mats manufacturers

co-operative society were selected for establishment of these centres during

Managerial Subsidy

(Rs.lakhs)

2.00 2.00 5.00 5.00 4.00 3.15 3.00 4.73 1 .OO 1 .SO 1 .OO 0.49 0.15 0.56

1.23

Marketing Assistance (Rs.lakhs)

4.00 83.65 0.20

- 1.75

-

-

Equipment Assistance (Rs.lakhs)

-

18.00 4.66 11.30

-

-

-

ICDP

(Rs.lakhs)

- -

-

- -

24.00 471.20 467.60 365.65 145.35

- 165.70 165.70

Total

(Rs.lakhs)

54.00 135.05 12.95 25.75 88.02 57.19 28.00 54.73 35.00 12.50 15.00 116.73 518.12 525.92 400.65 146.58

- 230.05 230.05

318

1991-92.1Vl~ese societies started functioning during 1993-94. TWO more

societies, small scale coir mats manufacturer's societies at Kanjikuzhi and

Cherthala were selected for establishment of common facility centre during

1993-94.19 Up to 1997-98, the Coir Board has released a total assistance

of Rs. 18.98 lakhs to these four small scale units in Kerala.1° During the

period 1999-2000, an amount of Rs.4 lakhs had been sanctioned for the

establishment of 2 more common facility centres at Ambalapuzha coir mats

and matting co-operative society and Cherthala taluk small scale coir matting

producer's co-operative ~oc ie ty .~ '

7.3.4. Mahila Coir Yojana:-

Mahila Coir Yojana ( MCY )is first women oriented self employment programme

in the industry. The scheme envisages the distribution of 4000 motorised coir yam

spinning ratts to women workers who are trained to operate the motorised ratt

and are able to raise the beneficiary contribution by means of own resources or

loan. The Coir Board will provide one time subsidy of 75% of the cost of ratt

subject to a maxirnum of Rs.75001-.The remaining 25% of the cost has to be

raised by the beneficiary through voluntary organisation or financial institution or

own source. The scheme was launched on 24-1 1-94. This is a self employment

programme which would not only provide employment, but would improve

productivity, quality, better working conditions, reduction of stress and strain of

the worker and higher income to the ~p inne r .~ As part of the implementation of

the scheme two months training course is being conducted in all the training

centres and field training centres of the Board. The societies or institutions which -

" Coir Board (1991-92): "38" Annual Report", Op.cit., P.28. l 9 Coir Board (1993-94): "40" Annual Report", Op.cit., P.33. 2o Coir Board (1997-98): "44' Annual Report", Op.cit., P.56.

Coir Board (1999-2000): "46Lh Annual Report", Coir House, Kochi, P.36. 2' Coir Board (1994-95): "41" Annual Report, Op.cit., P.61.

were distributed motorised ratt under International Trade Centre (1TC)ISwedish

International Development Agency ( SIDA) project are also imparting training in

spinning on motorised ratt. Besides, the successful trainees can also impart training

to others on their motorised ratt. Such trainees who pass the test conducted by

the Board are also became eligible for subsidy under the ~cheme.~' From 1994-

95 to 2000-2001 Coir Board has released an amount of Rs. 126.06 lakhs to

1405 beneficiaries. (see table. 7.11 )

Table 7.11

Year-wise Expenditure for MCY

Source : Coir Board, Annual Reports of Various Years

Year

1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01

Total

7.3.5 Model Coir Village Programme:-

With a view to improve the quality of coir products and provide basic amenities

and improved working conditions for coir workers in villages which had a

predominant coir activity, Coir Board implemented the programme of model

coir village. The scheme of model coir village was first approved by the Board

No.of beneficiaries

20 29 1 322 217 222 155 178

1405

" Coir Board (1998-99): 45' Annual Report, Op.cit., P.58

Expenditure subsidy ( Rs.lakhs )

10.43 24.00 27.00 20.00 24.00 9.46 11.17

126.06

on 30-9-1 983. Under this programme, amenities such as houses for SClST

coir workers, sanitary latrines, smokeless choolas, workshed ( ran and beating

shed ), bunding of retting site, community hall, drinking water scheme, rest rooms,

godowns, electrification of houses, provision of approach roads and construction

of foot bridge across the canal to work site, provision of country cart or boat

for transportation of husk or fibre or yarn etc. The progress of the programme

from 1985-86 to 1991-92 is giveninthetable7.12.

Table 7.12

Year-Wise Spending For Model Coir Village Programme

Source: Coir Board, Annual Reports o f Various Years

Year

1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 199 1-92

-

Out ofthe 18725 construction sanctioned during the period from 1987-88 to

1991-92 more than 85% have been completed as shown in the table 7.13.

No.of Villages

3 3 7 18 25 5 1

Amount spent(Rs lakhs)

3.01 4.79

19.74 49.22 60.54 10.28 2.00

3 2 1

Table 7.13

Projects Completed Under Model Coir Village Programme Up To 1991-92.

Source: Coir Board, 38Ih Annual Report, 1991-92, P.35

Scheme

Houses for SCIST Sanitary Latrine Smokeless Choola Drinking Water- Scheme Ratt shed Beating shed Community Hall Electrification of SC Houses Colour TV Set Small Implement- Kits Furniture for Anganavadi Foot Bridge Godown Bund

Total

The Board stopped the model coir village programme from the year 1992-

93 to 1996-97. But the programme was resumed in 1997. Accordingly, 10

villages were selected and the amount spend during 1997-98 was 36.30

lakhs. Then for 1998-99 the Board stopped the scheme. In 1999-2000, 16

model coir villages were selected for implementation of the programme

and Rs.48 lakhs was spent towards this.24 The implementation of the

programme in sixteen model coir village selected during 1999-2000 was

under various stages during 2000-2001.

' Coir Board (1999-2000): 46' Annual Report, Op.cit., P.40.

No.of Construction cleared

147 7223 10709

49 83 23 3 1

46 4

402 1 1 1 5

18725

No. of construction completed

124 5871 9437

40 72 18 20

46 4

402 1 1 1 5

16042

Percentage of completion

84.35 81.25 88.12

81.63 86.75 78.26 64.52

100 100

100 100 100 100 100

85.67

7.3.6. Assistance for the construction of work shed to small scale producers:-

In order to assist the small scale manufacturers to modernise their production

infrastructure, assistance for construction of work shed was implemented

by the Coir Board during the year 1987-88. According to this scheme, grant

was given to the small scale coir product manufacturing units to meet the

non- recurring expenses for the construction of the work shed at a total cost

not exceeding Rs.6000 per shed.*' The cost of the scheme was borne by the

Coir Board and state government on a 50:50 basis. During 1991 the scheme

was revised and the Board evolved a modified scheme for construction of

loom sheds with beneficiary participation. Having regard to cost escalation

the unit cost of the shed was revised from Rs.6000 to Rs.8797 per unit. The

modified scheme which would be directly implemented by the Board

envisages sanction of assistance of Rs. 6000 to eligible beneficiaries who

are able to mobilise Rs.2000 and contribute the balance of Rs. 797 by way

of loans.26 The number of beneficiaries and the expenditure incurred for

the construction of work shed from 1987-88 to 1998-99 is shown in the

table 7.14.

" Coir Board (1987-88): "34* Annual Report", Op.cit., P.2. l6 Coir Board (1990-91): "37' Annual Report", Op.cit., P.59.

Table 7.14

Expenditure For The Construction Of Loom - Shed To Small Scale Manufacturers By Coir Board

Source:- Coir Board, Annual Reports of Various Years

Year

1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-0 1

7.3.7. Brown Fibre Development :-

To motivate entrepreneurs to take production, manufacturing or

diversification activity in the brown fibre sector, the government of India

introduce a scheme of subsidy for establishment I modernisation I renovation

of the coir unit.Under this scheme subsidy is available to coir entrepreneurs

for setting up new units or modernisation of existing units. So far Rs. 39.89

lakhs has been allotted for 40 brown fibre units as shown in the table 7.15.

Expenditure ( Rs.lakhs )

6.00 1.98 1.98 .99

8.22 9.00 13.05 1.68 .23

2.75 4.725 3.75

-

No.of beneficiaries

100 N A NA 33

137 150 NA

4 3

37 63 50

- -

3 2 4

Table 7.15

Expenditure for brown fibre Development

Source:- Coir Board, Annual Reports o f Various Years

7.3.8. Raw Material Bank :-

Amount of Expenditwe (Rs lakhs)

2.70 4.08 1 .OO 7.68 6.21 8.78 9.44

39.89

Year

1994-95 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-2001

Total

Before the formation of the raw material bank, coir- fed supplied its member

co-operative societies with yarn and fibre. Other raw materials-the dyes

and chemicals - used are purchased by the societies individually, from

different sources, mostly outside Kerala. This not only adds to their cost,

but may also result in variations in the finished product quality, caused by

sourcing them from different centres. The raw material bank set up by the

coir- fed in August 2000 were purchased the dyes and chemicals in bulk

and these raw materials were supplied to member societies at subsidised

rates, throughout the year. The services of this bank can also be availed by

the entire coir indu~try.~' The government of Kerala spent Rs.1 crores for

the raw material Bank facilities.

No.of Units

3 5 1 8 6 9 8

40

The advantage of the raw material bank are -

" Coir Board, "Annual Plan Proposed of coir board for 2000-2001", Coir house, Kochi, P.3 I .

7.3.8.1 member soc~eties are assured of uniform high quality dyes and chemicals, at all

times.

7.3.8.2 The high quality specified by coir- fed is possible through the centralised

sourcing.

7.3.8.3 The subsidised rates and elimination of middlemen means greater savings

for societies, and

7.3.8.4 Improved quality will increase the demand which means stepped up

p r o d u ~ t i o n . ~ ~

7.3.9 Expenditure for Research and Development :-

There is a very large increase in the expenditure for R and D by Coir Board.

It increased from 2.79 lakhs in 1969-70 to Rs. 332 lakhs in 2000-2001. The

percentage increase in expenditure in each year over previous years also

shows that it is more than twenty five percent except for some years (see

table 7 16 )

Coir- fed (September 2000): Coir Vyavasayam ( Malayalam ), Coir- fed head office, Alappuzha, P.25.

326

Table 7.16

Coir Board's Expenditure for Research and Development :-

Source: Coir Board, Annual Reports o f Various Years '- ' sign indicate percentage decrease over previous year

Year

1969-70 1970-71 1971-72 1972-73 1973-74 1974-75 1975-76 1976-77 1977-78 1978-79 1979-80 1980-81 198 1-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 3988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-0 1

Expenditure ( Rs lakhs )

2.79 2.75 2.67 3.72 5.81 8.06 13.57 18.32 32.67 26.45 26.45 10.83 54.23 32.60 54.75 52.67 52.21 49.97 52.12 66.94 71.35 87.55 78.64 84.5 1 88.61 89.62 103.34 104.11 138.45 198.20 144.56 332.00

% change over previous year

- -1.43 -2.9

39.32 56.18 38.73 68.36 35.00 78.32 -19.03

0 -59.05 400.74 39.88 67.94 -3.79 -0.87 -4.29 4.30 28.43 6.58

22.70 -10.17 7.46 4.85 1.14

15.30 0.74

32.98 43.15 -27.06 129.66

7.3.10. Expenditure forT'raining :-

By considering the unportance of skill formation, the government of India through

Coir Board spends large amount for training. The expenditure incurred for training

to coir workers increased from Rs.74,719 in 1969-70 to Rs. 15 lakhs in 2000-

200 1 . ( see table 7 17 )

Table 7.17

Expenditure for Training By Coir Board

Year 7

1969-70 1970-7 1 1971-72 1972-73 1973-74 1974-75 1975-76 1976-77 1977-78 1978-79 1979-80 1980-8 1 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-2001

- .

Expenditure ( Rs.lakhs)

.75 1.01 1.06 1.29 1.24 1.55 1.91 1.79 2.08 2.00 1.73 2.08 4.42

23.13 16.54 23.83 27.59 23.33 11.88 6.07 6.27 8.08

12.34 13.62 10.73 15.90 2 1.64 15.96 9.63

10.4 14.47 15.00

Source: Coir Board, Annual Report of Various Years

7.3.1 1. Other infrastructural facilities provided by the government of Kerala are the

setting up of model coir factories, coir park and coir geo- textile development

programmes etc.

7.3.1 1.1. The government of Kerala have set up 3 model coir factories at Alappuzha, of

which one is in the public sector ( under the control of Kerala state coir

corporation ) and other two are in the co-operative sector ( The Karappuram

coir mats and matting co-operative society and Alleppey coir mats and

mattings co-operative society Ltd. ). A sum of Rs. 5 lakhs as loan and Rs.5

lakhs as share were sanctioned for the purpose of establishing the f a ~ t o r y . ~

7.3.11.2. Two coir parks, one in the public sector and the other in private sector in

Alappuzha district and these were set up by the government of Kerala for

producing new and diversified coir products.

7.3.1 1.3. An amount of Rs. 8651akhs was spent for coir geo-textile development

during 2000-2001. Out of this Rs. 675 lakhs was government share and

Rs. 190 lakhs from different agencies . Government's plans to implement

100 coir geo-textile projects during this period. For that geo-textile

development division was set up under Coir- fed and Coir C~rporat ion.~ O

7.3.12. Modern Dye House , the mechanised dyeing unit set up by the Central Coir

Research Institute provides facilities for bulk dyeing of coir yarn or fibre

to Hindustan coir as a routine basis and as per request by private coir

entrepreneurs (exporters and small scale manufactures).

Coir Board (1989-90): "36L Annual Report, Op.cit., P.64. 'O Coir- fed (July 2000): "Coir Vyavasayam" ( Malayalam), Op.cit., P.26.

7.4. Changes in Productivity :-

Low productivity of labour is the main curse of coir industry in Kerala. One of

the important objectives of technological change is to raise the productivity of

workers employed in the industry. The increase in productivity has raised the

economic conditions of workers. In the light of this an attempt was made to

analyse the productivity of coir workers in different machines. A study

conducted by NCAER, New Delhi, reveals that technological upgradation that

take place in the c.oir industry will improve the labour productivity to a

considerable e ~ t e n t . ~ '

The comparative labour productivity of traditional and modem machines are

given in the following tables 7.18,7.19, and 7.20.

Table 7.18

Comparative labour productivity in fibre productions:-

Source: Isaac, Thomas,T.M, Stuijvenberg, Van, P.A and Nair, K.N (1991): " The Coir Industry in Kerala- A Study of Modernisation and Employment Protection", Coir Board, Kochi, P.136.

No.of coir workers11 0000 husks Out put tworkertday (No. of husks )

The mechanical extraction of fibre no doubt raises the labour productivity.

It became 400 (number of husks defibered per worker per day ) in the defibering

machine than 150 in manual process.

" Coir Board (September 20, 1999 ): "Rationale of minimum Export Price for Export of Coir and Coir products", Coir News, Volume XXVIII., No. 9, P.26.

Nature of machine Manual

65 150

Kerala Drum

36 275

Defibering machine

28 400

Table 7.19

Comparative Productivity of labour in Coir Yarn Production

Source:- lbid

No.of workers

Out putlday (kg)

Out putlworkers (kg)

Motorised ratt would be an effective method for enhancing the labour

productivity than traditional hand spinning or ratt spinning. The machine

spinning is the most productive technique than all other machines.

Table 7.20

Comparative Productivity of Labour in the Production of Mats and Mattings.

Nature of Machine Hand

Spinning

I

3.50

3.50

Source: Ibid.

No.of workers required for weaving 850sq.m I day Productivity I 100m /day (:sq.m) Productivity 1 workerldayi' (sq.m)

Both power - loom and semi-automatic looms are superior to Hand loom in

terms of labour productivity.

Ran Spinning

3.00

12.20

4.06

7.5. Effects on Employment :-

Type of Machine

The immediate effect of technological change on employment is to reduce

employment. Several studies ( Thomas Isaac, Vanstuijvenberg, and K.N.Nair,

M.V. Pylee, study group on mechanisation of coir industry, Task force report,

Hand loom

65 25 13

Motorised Ran

2.00

15.00

7.50

Spinning Machine

6.00

180.00

30.00

Treadle Ran

2.00

7.60

3.80

Seml-Automatic loom

40 40 2 1

Automatic loom

15 150 57

Employment studies of coir industry etc. ) came to the conclusion that complete

mechanisation will displace large scale laboures from coir sector. Therefore,

the task force recommended an intermediate technology in the Coir Industry.'*

The semi-automatic looms in weaving, motorised or treadle ratt in spinning and

decorticating or combing machine in defibering etc are the examples of

intermediate technologies in the coir industry.

Studies on employment in the coir industry conducted by various agencies from

197 1 show that employment increased in industry. It increased from 1.59 lakhs

in 1971 to 3.83 lakhs in 1988. The estimate ofKerala Statistical Institute reveals

that the total employment in the coir sector in 1997 was 3.63 lakhs excluding

ancillary workers. Ifwe include ancillary workers also it becomes approximately

4 lakhs. (See table 7.2 l).AS 1 data shows that in the registered factory sector

in the coir industry employment increased from 2 150 in 1970-71 to 5006 in

1997-98.

Table 7.21

Employment Estimate of Coir Industry.

Source:- 1) Department of Economics and Statistics, Report on Survey of Coir Workers 1981, Thiruvananthapurm.

2) Department of Eco~iomics and Statistics (1990): Report on Coir Workers Census in Kerala 1988, Thiruvananthapuram, P.5.

3 ) K e r a l a Statistical Institute (1997): Survey of Coir Industry i n Kerala, Thiruvananthapuram, P. 19.

4) Coir Board, Isaac Thomas.T.M, Vanstinjvenberg and Nair K.N., Op.cit., P.36.

SI.No.

1 2 3 4 5 6

' Government of India, State Planning Board (1990): "Report of the Specia! Task Force on Coir Industrf',Thimvananthapuram, PP. 9.21.

Source

Census of India IIM, Banglore Department of Eco.and Statistics Department of Eco.and Statistics Department of Eco.and Statistics Kerala Statistical Institute

Reference Period

1971 1975-76

1981 1984-85

1988 1997

Employment

158607 243521 283478 275319 383394 362440

7.6. Effects on Earning:-

One of the major objectives of the technological change and development in the

coir industry was to enhance the earnings of the coir workers. The average

monthly income of a coir household from coir sector was Rs.97.77 in 1988.j

It increased to Rs.2400 in 2000."That is there is a 2429% increase in the

income over 1988.

More than half of the coir households have a monthly income Rs.1000 and

below and only less than 4% of the coir households are having an average

monthly income of more than Rs.3000. About 40% of the coir households

are in the monthly income of Rs. 501 and RS.IOOO.~~ Changes in the

percentage distribution of coir households by monthly income in three cluster

area in 2000 with that of 1997 shows that there is a considerable increase.

Similarly the percentage distribution of households in the lowest income

groups shows a decline and a corresponding rise in the highest income

groups. See table 7.22.

I3 Government of Kerala, Department of Economics and Statistics (1990): "Report on Coir Workers Census in Kerala 1988". Thiruvananthapuram, P. 15.

" Coir Board, UNDP project on " Technology Transfer, Modernisation and Capacity Building in the Indian Coir Sector", Op.cit., P.15.

" Kerala Statistical Institute, Survey o f Coir Industry in Kerala, Op.cit., P.33.

Table 7.22

Distribution Of Households By Monthly Income.

Source : I ) Kerala Statistical Institute (March 1997): Survey o f Coir Industry in Kerala, Thiruvananthapuram, P.66.

2) Coir Board (May 2001): UNDP project on the Base Line Survey o f Coir Clusters, Centre: Thiruvananthapuram, prepared by Tata Economic Consultancy Service, P.6.

3 ) Coir Board (June,2000): UNDP project on the Base Line Survey o f Coir Clusters, Centre: Kollam, prepared by Tata Economic Consultancy Service, P.7.

4) Coir Board (May 2000):UNDP project on the Base Line Survey of Coir Clusters, Centre: Alappuzha, prepared by Tata Economic Consultancy Service, P.12. '-- 'sign indicate percentage decrease over previous period.

Income Level

up to 500 501-1000 1001-1500 1501-2000 2001-3000 3000 And Above

Total

7.7. Effects on Housing:-

Another objective of technological change was to improve the socio-

economic conditions of the coir workers who are economically and socially

Thiruvananthapuam

backward. Decent housing is one of the primary necessities of life. With the

I997

8.00 27.10 20.20 0 16.10

9.50

100.00

improvements in earnings and consequent increase in the living standard,

Kollam

there is improvement in the housing conditions also. See table 7.23 and

2WI

1.2 8.6 6.9 12.4 31.2

39.6

100.00

1997

17.2 52.4 23.2 5.4 104

0.4

100.00

Alappuzha % changc over 1997

85.00 -68.26 -65.84 -35.07 93.79

316.84

1997

11.0 36.8 24.2 12.5 11.0

4.3

100.00

2000

1.0 4.8 13.0 12.0 26.2

43.0

100.00

%change over 1997

-94.18 -90.84 -43.97 122.22

1771.42

10650.00

2MO

1.7 7.9 19.0 17.8 30.0

23.6

100.00

%change over 1997

-84.54 -78.53 -21.49 42.4

172.73

448.84

3 3 4

Table 7.23

Distribution of Coir Workers households according to ownership of residential houses in three cluster Area (As a Percentage )

1988

Source : 1) Government of Kerala, Report on Coir Workers Census in Kerala 1988, Op.cit., P 14

2) C o i l Board, U N I ) P project on Rase Line Survey of Coir Clusters, Centre; Thiruvananthapurrn, Kollarn and Alappuzha, Op.cit., PP. 13.14.20

2000

Kollam Alappuzha State Total

The table 7.23 shows that about 96.69% of the households were owning

houses and the remaining 3.31% of the households were not having own

houses during 1988. The number of coir workers households who own

residential houses improve in 2000 when compared to 1988.

Thiruvananthapurm I 90.83% I 92.7%

The percentage distribution of households according to the material of roof

of their houses shows that about 53% of the households had houses made of

thatched roof and 47% were of tiles. Less than one percent of the households

had concreted roofs.36

93.63% 97.71% 96.90%

Compared to 1988 during 2000 the roof type of coir worker households in

the three cluster areas changed considerably that more and more coir workers

were owning R.C.C and tiled roof than thatched roofs. See table 7.24. In

Thiruvananthapuram during 1988,83.10% of coir workers households had

thatched house. It declined to 56.9 in 2001. (i.e. 31.53% decline over 1988).

In Kollam and Alappuzha the corresponding figures were 42,40 (35.48%

decline over 1988) and 48.46 and 35 (27.78 % decline over 1988). The

95.40% 90.00%

N.A

l6 Government of Kemla (1988): "Report on Coir Workers Census in Kerala 1988". Op.cit., P.14.

number ofhouseholds with tiled roof increased from 15.28 to 32.2% in 1988 to

2001 (i.e. 110.73 % increase over 1988) in Thiruvananthapuram. InKollam it

was increasing from 116.24 to 46 (i.e. 26.93 % increase over 1988). In Alappuzha

it increased from 511.17 to 58 (i.e. 13.35% increase over 1988).in 1988 to

2000. Similarly, the number of households who had R.C.C houses also increase

in all the three areas. There respective increases were 1.62 to 10.9 in

Thiruvananthapuram (i.e. 5 12.83 % increase), 1.76 to 14% in Kollam (i.e.

695.46 %increase) and 0.37 to 7% in Alappuzha (i.e. 1791 3 9 % increase) in

1988 to 2000.

Table 7.24

Percentage of Distribution of Coir Workers households according to types of roof of houses

Source: Same as table 7.23 '-'sign indicate % decline over1988

From the above analysis of the indicators and characteristics of

technological change in the Coir Industry of Kerala, it is very clear that there is a

considerable improvement in the mechanisation in different process of coir

production, number of skilled and educated labour force, infrastructure and

expenditure for infrastructure, productivity, employment, earnings and housing

conditions. This is an indication that technological progress achieved in the Coir

Industry of Kerala to a very great extent.