Economic Analysis and Determinants of Coir Yarn Production in Kerala’s Co-operative Sector

The study examined the economics and production determinants of coir yarn within Kerala’s co-operative sector, focusing on the cost-efficiency of different spinning technologies and the influence of labour and energy inputs. Primary data were collected from 60 co-operative societies in Alappuzha and Kollam, Kerala’s leading yarn-producing districts. Production was assessed for two yarn types – Vaikom coir yarn and Mangadan coir yarn, across varying technologies: Automatic Spinning Machines (ASM), electronic ratts, motorized traditional ratts, and traditional ratts. Cost and return analyses, along with multiple linear regression, revealed that ASM was the most cost-efficient method for both yarn types, yielding higher Benefit–Cost ratios and net returns. Regression results showed female labour and electricity consumption as significant production drivers, underscoring the gendered nature of the workforce and the importance of mechanization. The findings suggest that targeted policy measures—particularly those promoting mechanization, supporting female workers, and addressing capital constraints—can enhance the productivity and sustainability of Kerala’s coir co-operatives.

⓿ Production of Vaikom and Mangadan coir yarn using Automatic Spinning Machine (ASM) was found out to be the most cost-effective option.

⓿ Gradual mechanization adoption of ASM by coir co-operative societies can enhance the productivity.

⓿ The factors such as female labour and electricity (with the coefficients 3.85 and 0.02) significantly influenced the coir yarn production at 1 percent level of significance.

⓿ Since majority of the coir workers were female, empowering female workers is vital for sustaining Kerala’s coir cooperative societies in the yarn sector.