Traditional Industries in Kerala

Traditional Industries are labor-intensive sectors support the rural economy and employ around one million people in Kerala. The Department of Industries and Commerce, Kerala Government oversees the traditional sectors across the state. It works to protect traditional livelihoods and promote sustainable manufacturing. Kerala's major traditional industries include coir, handlooms, khadi & village industries, cashew processing, handicrafts, rubber industries and bamboo & screw pine manufacturing. These industries generate large scale employment in the state, especially for women from relatively marginalised sections. Traditional industries create value and represent an important part of Kerala’s heritage and culture. They play an important role in promoting inclusive development.

Coir Industries

Kerala aggregates 95 percent of the entire coir and coir product production in India. Kerala produces white fibre, accounting for 61% of coconut production and over 85% of coir products. Coir sector provides employment directly and indirectly to nearly 1 lakh coir workers. About 88,000 are enrolled as members in the Kerala Coir Workers Welfare Fund Board (KCWWF) of which around 80% are women. The entire processes in coir industry of the state can be divided into three major segments, namely fibre extraction, spinning and products sectors. In Kerala, the Coir Public Sector Undertakings like Kerala State Coir Corporation (KSCC) and Foam Mattings (India) Limited along with Coirfed are engaged in export actvities of coir products. Kerala Government declared the year 2010 as the 'Year of Coir'. The Slogan of Kerala Coir is ‘Golden Yarn of God's Own Country'. The first Coir village (gramam) is Vayalar. The Coir Board was established in 1954. The Coir Board was started by the Central Government under Coir Industry Act 1955. Coir Research Institute is located at Kalavoor. The apex federation in the coir sector of kerala is Kerala State Coir Co-operative Marketing Federation (COIRFED). It is located in AIappuzha (1979). PSUs in the coir sector of Kerala are Kerala State Coir Corporation Ltd (KSCC) and Foam Mattings (India) Ltd (FOMIL). The National Coir Training and Designing Centre established in 1965 is situated in Alappuzha. The National Coir Research and Management Institute (NCRMI) is situated at Thiruvananthapuram.

Handloom Industries

The handloom industry is a traditional industry of the state mainly concentrated in the districts of Thiruvananthapuram, Kannur, Kasargod, Kozhikode, Palakkad, Thrissur, Ernakulam, and Kollam districts. The industry is dominated by the Co-operative sector which accounts about 84% of total looms and the remaining 16% of looms is owned by private entrepreneurs. The major products in the handloom sector of the state are dhotis, shirting, furnishing, sarees, bed sheets and lungi. The procurement and marketing of handloom fabrics are handled by Kerala State Handloom Weaver’s Co-operative Society (HANTEX) and Kerala State Handloom Development Corporation (HANVEEV). The apex body of handloom co-operatives in the state is HANTEX established in 1961. HANVEEV is started in 1968. The earlier name of HANVEEV is 'The Kerala State Handloom Finance Corporation' (1968). The objectives of HANVEEV are providing assistance in manufacturing and marketing products. Its corporate office is at Kannur. 

Handicrafts Industries

Kerala has a rich tradition of handicrafts with variety of materials including metals, ivory, cloth, bamboo, stone, palm leaves, clay, lacquer ware, seashells, wood, coconut shells, coir, and more. Kerala has 32 unique crafts like wood and horn carving, bell metal casting, ivory carving,  hand embroidery, and coconut shell carving, which are commercially important. SURABI, HDCK and KADCO are entrusted with the promotion of handicraft industry in Kerala. SURABI is Kerala State Handicrafts Apex Cooperative Society. The major promotional agencies in the handicrafts industry are Handicrafts Development Corporation of Kerala (HDCK) and Kerala Artisans Development Corporation (KADCO). HDCK was established in 1968. It is engaged in procuring and marketing handicrafts products by giving fair returns to artisans through its Kairali emporia. KADCO is established in 1981. 

Cashew Industries

The cashew industry is a major traditional agro-based industry in the State. Cashew kernels are obtained through processing (which includes roasting or steaming, shelling and peeling) of raw cashew nuts. The largest number of Cashew Industry Units is clustered in Kollam and largest producer of Cashewnut is Kannur. Kollam is traditionally known as the global cashew trading capital. The largest producer of cashew nut is Kannur. There are two public institutions engaged in the cashew processing industry in Kerala, namely CAPEX and KSCDC. Kerala State Cashew Workers Apex Industrial Cooperative Society Ltd (CAPEX) has its headquarters at Kollam. It is registered in 1984. The Kerala State Cashew Development Corporation (KSCDC) was incorporated in July 1969 and started in 1971. Its headquarters is also at Kollam. The Kerala Cashew Board (KCB) is engaged in the import of raw cashew nut for CAPEX and KSCDC. Kerala State Agency for the Expansion of Cashew Cultivation (KSACC) is also engaged in the promotion of cashew cultivation and adoption of new innovative technologies to develop in the area, production and productivity of cashew.

Rubber Industries

The first commercial Hevea plantations in the country and in the state were started at Thattekadu in 1902. Also the first Rubber Factory in the country as well as in state is Travancore Rubber Factory. It was founded in 1935 at Thiruvananthapuram. It is the first PSU in erstwhile Travancore. Rubber Board is a statutory body formed by the Central Government in 1947. Its headquarters is at Kottayam. Rubbermark is Kerala State Co-operative Rubber Marketing Federation Limited. It is the apex institution of the Primary Rubber Marketing Co-operatives in the state. It is the largest supplier of natural rubber in India. RUBCO is Kerala state Rubber Co-operative Ltd. It was established in 1997. Its corporate office is at Kannur.

Khadi and Village Industries

Khadi and village industries have the potential to create employment for the rural artisans in the state with a very low capital investment. There are 29 Khadi institutions including KKVIB and KVIC. Khadi and Village Industries Board (KKVIB) was formed as a statutory body. KKVIB aided 14 institutions. Its head office is at Ernakulam. Its chairman is Minister for Co-operation, Khadi & Village Industries. It was established in 1957. Khadi and Village Industries Commission (KVIC) aided institutions (14 numbers) engaged in Khadi production and sales. All India Khadi and Rural Development Board was formed in 1953.

Bamboo and Screw Pine Industries

Bamboo is considered as eco-friendly, sustainable and renewable natural resource having special properties of conducive in creating a wide range of everyday products. There are around 28 species of Bamboo are found in the state. Bamboo from Kerala forests is being supplied mainly to the pulp and rayon units at concessional rates. It is noteworthy that 67.3% of extracted bamboo comes from home gardens rather than from the forests. Workers weave screw pine leaves (Kaitha) and bamboo into durable mats, baskets, and eco-friendly utility goods. Kerala State Bamboo Mission (KSBM) was constituted in the year 2003 under the Department of Industries and Commerce to act as the Bamboo Development Agency (BDA) of the State. The interventions initiated after the formation of KSBM under K-BIP includes promoting the cultivation of bamboo, designing new innovative products with appropriate skill development, and the promotion of bamboo based modern industries with the aid of technology. The Kerala State Bamboo Corporation is an undertaking established in 1971 for the welfare, development and uplift of traditional bamboo workers in Kerala.

Modernising the traditional sector

Traditional industries in kerala are facing challenges. However, the Government has taken steps to support these industries to sustain the workers and ensure generation of value. Continued Government support will ensure employment and income to large number of workers who are depending these industries. Apart from providing funds to ensure continuous operations of such units, the Government is also taking steps to modernise the traditional industries. Modernisation of traditional industries includes mechanisation of production processes in these industries. This modernisation is undertaken by retaining the existing workers in these industries. Here the traditional industries want to encourage new products and evolve effective marketing and distribution strategies. Several measures are taken by the government to increase the marketing and distribution of the products of traditional sector domestically and globally. One unique feature of recent development in Kerala’s industrial sector has been the democratic nature of planning and implementation of schemes and distribution of benefits. The industrial landscape including traditional and modern industrilization in Kerala can be expected to make significant achievements in the near future.