Mechanisation and Coir Industry in Kerala: Channels of State Interventions

The present article is an attempt to explore the role of government in mechanising the coir industry of Kerala, which is expected to yield wider policy implications regarding the channels of state interventions in the coir industry for its betterment. The analysis of the government support received by the private sector coir manufacturers reveals that the financial support aims to develop the infrastructure of the firm. However, non-financial assistance like government procurement and participation in government-sponsored trade fairs positively influence the mechanisation index (MI), whereas the provision of subsidised raw materials has a negative influence on MI. In this respect, 'Coir Kerala' is a good initiative by the government to mechanise and thus improve the coir industry of Kerala. The study concludes that proper market interventions are required for efficient utilisation of the production capacity of the firms and thus to improve the performance of the traditional coir industry of Kerala. This, in turn, will boost the mechanisation and thus the performance again. This chain of actions and reactions will help the industry to overcome all its vulnerabilities and will lead it to prosperity.