Coir Vikas Yojana: Reviving Coir Industry through Entrepreneurship

The coir sector has long been a symbol of India's rich heritage. However, despite its historical significance, the Indian coir industry faced challenges due to decentralized operations, unorganized processes, and a lack of structured functioning. In response to these issues, the Coir Board, functioning under the Ministry of Micro, Small, and Medium Enterprises (MSMEs), initiated the Coir Vikas Yojana (CVY). This transformative initiative weaves the power of entrepreneurship with the richness of coir, creating new avenues for growth and sustainability.

What is the Coir Vikas Yojana (CVY)

Coir Vikas Yojana, often referred to as CVY, is a scheme aimed at revitalizing the Indian coir industry. It is operated by the Coir Board, a statutory body established by the Government of India to promote and regulate the coir and coir-based industry. CVY encompasses a wide range of objectives and activities designed to uplift this traditional sector.

The Need for Coir Vikas Yojana

The Indian coir industry, despite its historical roots, has struggled with issues related to product quality, unskilled labor, and lack of organized training. Substandard quality and workers' involvement in production activities without sufficient training have hindered the industry's growth. Recognizing these challenges, Coir Vikas Yojana was conceived to address them comprehensively.

The primary need for CVY arises from the decentralized nature of the coir industry. Traditional methods are often passed down from generation to generation, leading to variations in product quality. To overcome this, CVY focuses on providing effective training and skill development, fostering entrepreneurship and employment opportunities, enhancing raw material utilization, undertaking welfare activities for coir workers, and empowering women in the industry.

Scheme Highlights

CVY brings several benefits to the coir industry and its stakeholders:

1. Subsidized Equipment Provision - Under CVY, the Mahila Coir Yojana offers 75% subsidies on coir spinning equipment, machinery, and materials. This initiative aims to empower women in the industry and promote gender inclusivity.

2. Quality Enhancement - One of CVY's key objectives is to instill quality consciousness at the grassroots level. Workers are educated about standardized production methods for high-quality yarn, fiber, and coir products.

3. Entrepreneurship  Promotion - CVY raises awareness among entrepreneurs and coconut growers about the potential of coir-based production units. It encourages the establishment of new units and modernization of existing ones, leading to improved quality, productivity, and earnings.

Mahila Coir Yojana (MCY)

The coir industry, being labor-intensive, involves a significant number of female workers, approximately 80% of the workforce. However, many of these women lacked training and worked in unorganized settings. This had adverse effects on both production and quality.

To address this gender disparity and skill gap, the Coir Board initiated the Mahila Coir Yojana (MCY) in 1994. MCY focuses on providing trained and skilled women artisans with a 75% subsidy on machinery and rates. During the training period, woman artisans receive a stipend of Rs.1,000/- per month.

Skill Upgradation

CVY emphasizes skill development through various programs such as awareness campaigns, entrepreneurship development initiatives, exposure tours, seminars, and workshops. These programs equip workers with the necessary skills to create value-added coir products. Participants in these training programs are eligible for stipends.

Entrepreneur Development Program

Entrepreneur development programs, organized by regional or sub-regional officers of the Coir Board, play a vital role in CVY. These programs are conducted by professional agencies with expertise in the field. They cover a range of topics over a 3-day duration, including field visits to coir processing units.

How to apply for the Coir Vikas Yojana?

The Coir Vikas Yojana is a great initiative for the weavers, entrepreneurs, and coir industry. To apply and reap the benefits of the Coir Vikas Yojana, interested parties can visit the Startup India website or click here to learn about the program in detail. 

Impact and Future Prospects

The Coir Vikas Yojana has already made significant strides in the coir industry. The focus on quality, skill development, and entrepreneurship has led to an average 6% annual increase in the global market for coir products. Furthermore, providing training and insurance coverage to workers and artisans has proved beneficial for both the workforce and the industry as a whole.

The Coir Vikas Yojana is a transformative initiative that not only preserves the cultural heritage of coir but also empowers the industry for the future. By emphasizing quality, training, and entrepreneurship, CVY paves the way for sustainable growth and success in the coir sector.