The Central government will set up a dedicated coir testing laboratory in Pollachi, Union Minister of State for Micro, Small and Medium Enterprises (MSME) and Labour and Employment Shobha Karandlaje announced here on Saturday.

Speaking at a seminar-cum-industry meet organised by the Coir Board, she said the lab will be established on five acres of land in Thippampatti village. It will focus on testing and certifying coir products for export, improving market access, and helping producers meet international benchmarks.

The Minister noted that MSMEs across the country still lack adequate access to skilled labour and modern technology—both essential for the sector’s growth. She urged stakeholders to engage the younger generation through Industrial Training Institutes (ITIs) and institutions like the Indian Institute of Science (IISc), and to prioritise skilling and upskilling.

She called for greater investment in research and development to diversify coir products, including value-added innovations such as coir plywood and activated carbon. The Minister assured the stakeholders that the government would bring in advanced technologies from across the world, responding to a key demand raised by industry associations during the meet.

Stakeholders flag challenges

Stakeholders from across the coir value chain flagged several challenges, including constraints in boosting exports, limited access to working capital and technology, the need for quality upgrades, and global pricing pressures.

In response to industry appeals for policy support to blend coir fibre with banana waste, jute, bamboo, and other natural materials, Ms. Karandlaje said the Coir Industry Act, 1953, would be amended to allow such blending. She added that financial support under the Prime Minister’s Employment Generation Programme (PMEGP), including a 30% subsidy, would continue.

She encouraged entrepreneurs to register on the Udyog Aadhaar Memorandum (UDYAM) and Government e-Marketplace (GeM) portals to access Central procurement benefits.

Highlighting the underutilisation of coconut husk, she said only 50% is used in Tamil Nadu, 10% in Karnataka, and 12–15% in Kerala, while a significant share is still being burnt. She called for a joint effort by the Indian Council of Agricultural Research (ICAR), the Coir Board, and the Coconut Development Board to generate value for coconut farmers.

Later, speaking to reporters, the Minister criticised the Tamil Nadu government over electricity tariff hikes, saying they were adversely affecting the MSME sector — the second-largest employer in the country after agriculture. She also cited concerns over corruption, land and drug mafias, and governance issues in the State.

Ms. Karandlaje demanded that the State release a white paper on what she called “its financial crisis” and questioned the lack of accountability in public spending.

Later in the evening, the Minister visited Agri Intex 2025 in Coimbatore and interacted with MSME and agri-entrepreneurs. She urged to focus on ready-to-cook and ready-to-eat food products to boost exports.

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