Description

In pursuance of Section 10(1) of Coir Industry Act 1953,Coir Board has been taking various measures for popularizing coir and coir products and expanding the domestic market. Establishment and maintenance of Showroom and Sales depots, participation in fairs / exhibitions organized by Showroom and Sales depots, participation in fairs / exhibitions organized by other agencies and organizing exclusive fairs for Coir and coir goods within the country, providing Market Development Assistance to State supported organizations for enlarging marketing network, organizing generic publicity through press, television, website and radio and erection of hoardings, fixing of quality standards, inspection and a certification of quality of coir goods are some of the measures taken by Coir Board towards achieving the objective. The activities undertaken by the Board for the purpose are publicity, participation in domestic exhibitions, Extension of performance linked Market Development Assistance, construction/renovation/interior decoration of new and existing showrooms/market development centres of the Board and field demonstration/displays.

Nature of assistance 

The component proposes to provide financial assistance to the Apex Co-operative Societies, Central Co-op. Societies, Primary Co-operative Societies, Public Sector Enterprises, franchisees appointed by Coir Board in the coir industry and the Showroom and Sales Depots / Hindustan Coir of the Coir Board. The MDA is granted at the rate of 10% of their average annual sales turnover of coir products including coir fibre, coir pith, coir pith block, coir pith products, coir pith organic manure, coir yarn, mats, matting, rubberized coir goods, coir geotextile, garden articles, coir bags, coir umbrella, coir chapel, coir ornaments, coir garden articles, coir bags, coir umbrella, coir chapel, coir ornaments, coir handicrafts, coir wood and other innovative products during the preceding three financial years, subject to the condition that 5% increase should have been achieved over the immediate previous year. This Assistance will be shared on 1:1 basis between the Central Government and the concerned State/Union Territory Government. The disbursement of Central share of MDA will be subject to the budgetary outlay available with the Coir Board under the relevant schemes.

Reason for the Domestic Market Promotion Scheme

The main goal of the introduction of DMP is to develop a strong and stable domestic market for coir and coir products. Such a strong and stable domestic coir market would enable increasing returns to the manufacturers; growth of employment /entrepreneurship development, increase in the utilisation of raw-material etc.

Through the Scheme, the Board targets popularising coir and coir products and expanding the domestic market thereon. The Board is undertaking the following activities for achieving the required targets:

• Publicity:
  • One of the main activities of the Board is to give huge publicity for popularising the coir and coir products.
• Establishment and maintenance of showrooms and sales depots:
  • The Board is maintaining around 30 showrooms and 2 sales depots. The main purpose of maintaining such showrooms and sales depot is the improvement of the market of coir and coir products and preventing unfair competition.
  • In such board’s maintained showrooms and sales depots, the coir goods are received from various small scale manufacturers; co-operative societies and other government units, helping them to market their products.
• Participation in Domestic Exhibitions:
  • With an aim to popularise coir and coir products and enhancing the sales through the board’s showrooms, the Board is actively participating in important exhibitions organised all over the country.

Qualifying Applicant

The following lists are the qualifying applicant who can apply under the DMP scheme:

• Apex co-operative societies;
• Central co-operative societies;
• Primary co-operative societies;
• Public Sector Enterprises;
• Franchisees (appointed by the coir board in the coir industry); and
• Showroom and sales depots (eligible).

Quantum of Available Assistance

The Scheme assists at the rate of 10% of average annual sales turnover during the preceding three financial years of coir products. Please note such coir products includes coir pith; coir pith block; coir pith organic manure; coir pith products; coir fibre; coir yarn; matting; mats; rubberised coir goods; garden articles; coir geotextile; coir umbrella; coir bags; coir ornaments; coir chapel; coir handicrafts; coir woods and other innovative products.

The assistance is available subject to a condition that the beneficiary/unit has achieved a 5% increase in the turnover of the previous year.

Utilisation of the Assistance

The assistance received under the scheme can be utilized only for the following purposes:

• Opening of a new showroom or new sales outlet,
• Renovation of current sales outlet,
• Godown,
• Publicity (including both print and electronic),
• Market Study,
• Innovative marketing strategies (including payment of discounts and other sales campaigns),
• Setting up of market intelligence network or upgradation of design facilities like installation of computer; engagement of qualified designers; aided design Centre; computerisation of showrooms; introduction of e-commerce facilities etc.

Submission of Claims under the Scheme

• The beneficiary unit is required to submit their claims to the concerned state government or union territory government in Annexure I. It should be noted that the primary societies are required to submit their claims in Annexure-II.
• The State Government of the union territory government shall in-turn submit the consolidated claims received to the coir board.
• The Franchisee is required to file their claim in Annexure-III directly to the coir board.
• Along with the claim, the beneficiary is required to submit a utilisation certificate. The utilisation certificate certifies that the assistance received under the scheme during the preceding year was effectively utilised for the approved purpose only. The certificate is required to be countersigned by the designated authority of the state government or the union territory government.