Kerala coir exporters seek urgent government help after U.S. slaps 50% tariff

The Federation of Indian Coir Exporters Associations (FICEA) has sought urgent government intervention to tackle the crisis that has arisen following the 50% tariff imposed by the U.S. on coir imports from India.

In a letter to Minister for Industries and Coir P. Rajeeve, FICEA chairperson Roby Francis and secretary general Sajan B. Nair said the present crisis needed to be treated as an “emergency.”

“The sudden and steep tariff increase has severely impacted our competitiveness in the U.S. market. The industry cannot afford a standstill situation as any delay will result in irreparable damage,” the letter read.

Noting that coir products are highly seasonal, FICEA said that if shipments, especially those meant for Christmas and New Year, were not executed immediately, the finished goods would turn into dead stock, leading to massive financial strain on manufacturers, exporters and allied sectors.

Large-scale layoffs

“The impact is not only financial but also social. The cancellation and suspension of orders and the stoppage of production will inevitably lead to large-scale layoffs. A significant percentage of our workers, many of them women from rural areas, depend entirely on this seasonal industry for their livelihood. Moreover, with Onam and the festive season fast approaching, a slowdown in production will result in wage and employment losses. Without urgent intervention, thousands of families will be directly affected, causing severe socio-economic and financial distress in the State,” it said.

FICEA called for the State government assistance to “reduce immediate costs and sustain operations,” along with making strong representations to the Union government to ensure maximum financial and policy support.

It urged the Union government to provide export subsidies, particularly for shipments to the U.S. and to initiate discussions on a Free Trade Agreement and Bilateral Trade Agreement between India and the U.S. to arrive at a solution. FICEA also requested the State government to provide a transport subsidy for the movement of raw materials within Kerala and for exports shipped from Kochi to the U.S. ports.