The Hindu : Business : Demand to exempt rubberised coir from sales tax

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Wednesday, Sep 20, 2006
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Demand to exempt rubberised coir from sales tax

Staff Reporter

`The exemption will boost production'

KOCHI: The All India Coir Mattress Manufacturers' Association has urged the Government to exempt rubberised coir from sales tax and excise duty. Association president Sundaresan said such a move would help increase the production. Competitive products such as PU foam and latex foam are charged a lower tariff in different States. Coir has to fight an unfair competition in this circumstance, he said.

Rubberised coir is an eco-friendly product and all the raw materials are from nature. It can be considered as an agro-based product. As it is bio-degradable, it causes least environmental pollution, he pointed out.

He demanded that cluster-based development should be organised in coconut growing areas. There has been a substantial improvement in the utilisation of husk during the last three years. Thanks to good monsoon and subsequent good crop of coconut, the availability of coconut fibre has vastly improved over the last year.

The Coir Board should encourage these industries by guiding them to keep quality for producing a better product, he said.

Mr.Sundaresan said the Coir Board should help the existing industry by providing liberal loans for technological upgradation.

A separate wing may be formed in Central Coir Research Institute for research and development. He called for efforts to expand the use of rubberised coir mattresses in hospitals and other medicare centres.

He recalled that the coir mattress manufacturing sector has grown from eight units in the 1960s to more than 85 units. The annual sales in the sector is to the tune of Rs.1,000 crore.

The industry has registered an approximate growth of about 10 per cent per annum since 1995, he said.

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