MSc

The study entitled "Production of coir in co-operative sector in Kerala: An economic analysis" was conducted during 2024-25. This study focuses on analyzing the economic dimensions of coir yarn production within Kerala's cooperative societies, with particular attention on the costs and returns in the production of coir yarn, the factors influencing coir yarn production, the socio-economic conditions of coir workers, and the constraints that impact both coir workers and coir co-operative societies. The study was conducted in Alappuzha and Kollam districts of Kerala which were purposively selected as they have the largest number of coir co-operative societies. Alappuzha district in Kerala, formerly known as Alleppey, is regarded as the birthplace of the Indian coir industry. 30 coir co-operative societies were selected from each of the two districts, thus, making a total of 60 coir co-operative societies. From each of the selected societies, 4 workers were selected randomly, hence making a total sample size of 240. Primary data were collected through pretested well structured interview schedule, while secondary data were collected from the Coir Board of India, Ministry of Micro, Small & Medium Enterprises (MSME), Coirfed, Kerala State Coir Corporation Ltd, and Directorate of Coir Development. Out of the 60 coir co-operative societies selected (30 societies from Alappuzha district and 30 societies from Kollam district), 38 societies were involved in the production of Vaikom coir yarn variety and 22 societies were involved in the production of Mangadan coir yarn. All the 30 societies selected from Alappuzha district were producing Vaikom type of coir yarn, while out of the 30 societies selected from Kollam district, eight societies produced Vaikom coir yarn and 22 societies produced Mangadan coir yarn. This classification of coir yarn is based on the fact that the yarns produced in different areas have specific characteristics with respect to colour, twist, etc. brought about by variations in methods of production. The cost of production of Vaikom and Mangadan coir yarns using different machinery in the Alappuzha and Kollam districts, were analysed. In the Alappuzha district, Vaikom coir yarn was produced by seven societies using ASM (Automatic Spinning Machine) and 30 societies employed electronic ratts. In Kollam district, eight societies used electronic ratts for Vaikom coir yarn production. In the Mangadan coir yarn production, two societies used ASMs, 20 societies used motorized traditional ratts, and two societies employed traditional ratts in Kollam district. The study showed that production of Vaikom coir yarn in Alappuzha district using ASM had a total cost of ₹3,357.13 per quintal, which was lower than ₹4,114.74 per quintal using an electronic ratt, due to differences in total variable cost (TVC). In Kollam, production of Vaikom coir yarn with electronic ratts was slightly higher at ₹4,253.15 per quintal. In the production of Mangadan coir yarn, the total cost of production using ASMs (₹3,750.47 per quintal) was lower than that using motorised traditional ratts (₹5,365.86 per quintal) and traditional ratts (₹6,172.23 per quintal). The net returns from the production of both Vaikom coir yarn and Mangadan coir yarn using ASMs (₹546.58 and ₹1,149.53 per quintal respectively) was much higher than that using other machinery. The Benefit-Cost analysis showed that production of Vaikom coir yarn and Mangadan coir yarn using ASMs had the highest B-C ratio of 1.16 and 1.3 respectively. In essence, ASM was the most cost-effective option for producing both types of coir yarns in the two districts. Multiple linear regression model was fitted to study the influence of factors such as female labour, electricity, and male labour on coir yarn production in cooperative societies producing Vaikom coir yarn and Mangadan coir yarn. The results revealed that female labour and electricity consumption had positive and statistically significant effect on production at one percent level of significance, as indicated by their regression coefficients of 3.85 and 0.02, respectively. On the other hand, male labour was found to be statistically insignificant, indicating that changes in male labour do not have a profound impact on the coir yarn production within the cooperative sector. In brief, the analysis underscores the critical role of female labour and electricity consumption in driving coir yarn production, suggesting that coir cooperative societies could benefit from focusing on optimizing these resources to enhance productivity. The analysis of socio-economic profiles of the coir workers revealed that the majority (97 percent) of the respondents in the study area were female, aged between 50 and 60 years, and belonged to the OBC category, with education up to the primary level. Most had 20 to 30 years of work experience, an average annual income between ₹50,000 to 1 lakh, and no other working member in their families. They were members of the Kerala Coir Workers’ Welfare Fund (Kshemanidhi). Additionally, most owned a house, which was typically roofed with iron sheets, relied on wells for drinking water, and none of them were indebted. The constraints related to coir production faced by the coir workers as well as the coir co-operative societies were analysed using Garrett’s ranking technique. Work-related health problems, inadequate wages, and irregular employment were considered as the major constraints faced by the coir workers in coir yarn production. Shortage of labour, delay in receipt of payment from the Coirfed for the coir sold by the society, and lack of financial support from higher organisations/inadequate funding were identified as the major constraints faced by the coir co-operative societies in the production of coir yarn. In brief, the analysis highlighted that ASM machinery was the most profitable for both Vaikom and Mangadan coir yarn production, with relatively higher returns per rupee of investment. Therefore, a gradual introduction of ASMs can reduce the labour-intensiveness of production and lower the variable cost. Hence, mechanization is crucial for achieving higher productivity in coir yarn production in the co-operative sector of Kerala. ASMs can handle a greater work load, reducing the need for manual intervention, which can help in achieving higher productivity and efficiency. This can also attract the younger generation to the coir workforce. The introduction of ergonomic measures- such as supporting equipment, adjustable chairs, etc. can be introduced to reduce the physical strain of coir workers during spinning. Hence, the constraint of work-related health problems among the workers can be tackled. Introduction of performance-based incentives apart from the wages and bonuses received during festivals such as onam, can encourage them to improve their efficiency and productivity, and attract youngsters. Timely payments from the 121 COIRFED for the coir yarn purchased from cooperative societies can significantly support these societies in disbursing wages to worker in time, and also aid in efficiently managing production costs, thereby ensuring smooth and sustainable operation of the cooperatives.