The State Budget for 2025-26 has evoked mixed responses from the crisis-ridden coir sector. A total outlay of ₹107.64 crore has been earmarked for the sector, the same as in the previous Budget.
Presenting the Budget on Friday, Finance Minister K.N. Balagopal announced an allocation of ₹22 crore for mechanisation, regulated mechanisation, and infrastructure development in the coir industry. Besides, ₹38 crore has been set aside to stabilise the prices of coir products and coir fibre. A sum of ₹5 crore has been earmarked for the Coco Peat Industries Development Project, “which has high commercial potential.”
Further, ₹13.50 crore has been allocated for the rejuvenation of Coir Cooperative Societies.
‘Grossly inadequate’
C. B. Chandrababu, president, Coir Workers Centre (CITU), said the announcements in the Budget would help revive the industry. “The allocated funds will help protect jobs and wages of ordinary workers. The industry can move forward only through modernisation and this Budget will ensure the necessary infrastructural development,” Mr. Chandrababu said.
However, M. Anilkumar, general secretary, Kerala Coir Goods Producers Association (INTUC), termed the allocations as “grossly inadequate.” “There is nothing in the Budget to revive the debt-ridden sector. It does not address joblessness or the declining demand for traditional coir products such as handloom mats and mattings, manufactured by small-scale units,” Mr. Anilkumar said.
