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| Last Updated:: 27/09/2018

Industry

 

 

Department: In Kerala,the department of industies and commerce is headed by a Principal Secretary to Government. This department is responsible for promoting/ sponsoring, registering, financing and advising industries in the state. The department and its agencies also guide the entrepreneurs in the selection of appropriate industrial ranges in the private, public, joint and co-operative sectors. Directorates of industries and Commerce, Handloom and Textiles, Coir Development, Mining and Geology and 72 Public Sector undertakings fall under this department. Visit Kerala's position is 12th in the industrial ranking among the major 16 States in India . It was reported that about 22.5 % of the total income of the State came from the secondary sector during 1980-81, which was only 17% during 1970-71. The industrial sector of Kerala employed 15% of the total workers against the national average of 9%.

 

Industrial Growth Centres:As per scheme announced by the Central Government, Government of Kerala has entrusted Kerala State Industrial Development Corporation Ltd (KSIDC) for developing and managing Industrial Growth Centres in various locations in the state. Accordingly KSIDC has acquired /purchased land at four industrially backward locations in the following districts:

 1.Kannur  - Valiyavelicham (Kuthupramba)

2.Kozhikode - Kinalur (Balusserry)

3.Malappuram - Panakkad (Malappuram)

4.Alappuzha - Pallippuram (Cherthala)


 

             The Industrial Growth Centres at the above locations are under various stages of development and basic infrastructural facilities such as road, water, power, telecommunication etc are already put in place. Steps are being taken to improve the facilities further.Industrial plots are available at these Growth Centres and entrepreneurs can get the same for setting up industrial units, on long lease for a period of ninety years. The units coming up in the IGC are supported by Single Window Clearance Mechanism of State Govt.

 

Major Industrial Locations: Most of the industrial and commercial establishments in Kerala are concentrated in the coastal zone.Among the coastal districts, Ernakulam and Trivandrum have fairly large number of industries along the coast, followed by Alappuzha, Kollam, Kozhikode , Kannur, Kasargod and Malapuram. Eloor- Edayar- Ambalamugal area is the major industrial area located in the coastal zone in the city of Kochi in Ernakulam District along the banks of the Cochin backwaters.

 

Major Industries such as

  • Fertilizer and Chemicals Travancore Ltd.(FACT)
  • Kochi Refineries Ltd.(KRL)
  • Hindustan Organic Chemicals (HOC)
  •  Cominco Binani and Cochin Shipyard are located in Kochi availing the advantage of the port facilities.

          The world famous Chavara placer deposits of the Kollam district support three major mineral industries in Kerala viz.

  • The Indian Rare Earths Ltd. (IRE) 
  • Kerala Minerals and Metals Ltd.(KMML) at Chavara (Kollam)
  • The Travancore Titanium Products (TTP) at Veli (Trivandrum).

 

            These units are situated closer to the sea. The Excel Glass factory situated near Cherthala utilizes the silica sands of the coastal zone of Alappuzha district for the manufacture of glass. Most of the seafood and coir industries in Kerala are located in the coastal area and are concentrated in Alappuzha district. There are 101 seafood factories in the coastal zone with a freezing capacity of approximately 1868 t /day, of which 47 are approved by the European Union. Besides, there are 210 peeling sheds and 217 ice plants. Cashew processing industries, a traditional enterprise in the state are mainly situated in the coastal area of Kollam district.There are about 300 large and medium scale industries and 1,66,000 small scale industries, most of them are located in the coastal area (KSPCB, 20002). Of these 250 large and medium scale industries and 5000 small scale industries are polluting significantly to the environment.   

 

District-wise break up of Medium and Large Scale Industries in Kerala as on 31-03-2007

 

Map of Kerala showing important Fishing Harbors & Ports.  

 

Industrial sector in Kerala

 

                       Industrial sector in Kerala comprises medium and large industries, micro, small and medium enterprises (MSME) and traditional industries. The departments/agencies that deal with medium and large industries are Kerala State Industrial Development Corporation Ltd (KSIDC), Kerala Industrial Infrastructure Development Corporation (KINFRA), Public Sector Restructuring and Internal Audit Board (RIAB), Bureau of Public Enterprises (BPE) and Centre for Management Development (CMD). The agencies dealing with MSME and traditional industries are Department of Industries and Commerce, Directorate of Handloom and Textiles, Directorate of Coir Development, Khadi and Village Industries Board and Capex. Department of Mining and Geology also comes under this sector. The subsector-wise outlay and expenditure in the Twelfth Five-Year Plan and Annual Plan 2016-17 and 2017-18 are shown in the table below:

 

Sub Sector-wise Outlay and Expenditure, in lakh

 

 

Sl. No

Name of Department/Scheme

XII Five-Year Plan

Annual Plan  2016-17

Annual Plan 2017-18

Outlay

Expenditure

Outlay

Expenditure

Outlay

Expenditure (as on Oct 2017)

1

Medium and Large Industries

130643.0

99932.0

29178.0

18023.3

48296.0

20407.0

2

Department of Mining and Geology

893.0

536.1

84.00

48.8

135.0

88.33

3

Village and Small Scale Industries

169198.0

152328.1

36631.0

39593.9

40446.0

13048.3

Total

300734.0

252796.2

65893.0

57666.0

88877.0

33543.6

Source: Budget Estimate

           

                  The Government earmarked Rs.3,007.3 crore for the industries sector during the Twelfth Five-Year Plan and the expenditure was Rs.2,528 crore (84.1 percent). In Annual Plans 2016-17 and 2017-18, the outlays for the sector were Rs.658.9 crore and Rs.888.8 crore respectively. The expenditure in Annual Plan 2016-17 was Rs.576.7 crore (87.5 percent) and in 2017-18, the expenditure reported as on October 2017 was Rs.335.4 crore (37.7 percent). The amount earmarked in Annual Plan 2017-18 for industry sector was 35 per cent higher than the previous year.

 

 Micro Small and Medium Enterprises (MSMEs)

 

            The Micro, Small and Medium Enterprises (MSME) sector is fast emerging into a major income generating and employment providing sector in Kerala with relatively lower investment. Kerala is one of the main centres of MSMEs in the country. As per the MSME survey & Quick Results of 4th Census 5.62 % of all India share of MSME enterprise is in Kerala. MSME sector can lead the State economy by increasing exports through quality production techniques and products. Government provides various schemes in MSME sector, targeting various social groups like SC, ST, Women, Youth, and Physically Handicapped etc. In Kerala, Government and banks are providing lot of facilities for MSME Sector.

           

            Within the MSME Sector there is a significant increase of Micro Enterprises, both in terms of working enterprises and employment. There are over 6000 various MSME products ranging from traditional to high-tech items which are manufactured in this sector. MSMEs play a critical role in innovation, and have ability to experiment with new technologies on small scales. However, they often suffer from funds, lack of entrepreneurial spirit, inability to take technology developments risks and face the difficulty of attracting skilled manpower. The industries coming under this sector are handicrafts, Handloom, Khadi, Food processing industries, Garment making and Textile industries, industries related to coir/wood/bamboo/Plastic/rubber/ leather/clay products etc.Performance of the sector for the past 5 years

 

            The total number of SSIs/MSMEs registered in Kerala as on 31.3.2013 is 219444 against 205987 in the previous year indicating a growth of about 7 percent. Out of the total SSIs/MSMEs, 4 percent are promoted by SCs, approximately 1 percent by STs and 25 percent by women entrepreneurs. The total investment was  Rs 1212674 lakh in 2012-13 against  Rs 1083169 lakh in the previous year, with an increase of almost 12 percent and the total number of employment generated was 1103126 indicating more than 8 percent over the previous year which was 1021162. Details of enterprises are given here .                

  

         The number of New Enterprises filed Memorandum under MSMED Part II during the year 2012-13 was 13043. Out of which 413 MSMEs are by SC, 66 by ST and 3122 by Women. The number of new enterprises that filed Memorandum during 2012-13 shows 18 percent increase against 11079 of the previous year. Investment on the sector decreased by 3 percent from  Rs 190642.75 lakh of the previous year to Rs 185074.41 lakh in 2012-13 while employment generated increased by about 4 percent from 79181 to 81964. The value of goods and services produced in 2012-13 has been increased by 6 percent ie, Rs 621424.55 lakh over Rs 584985.35 lakh in the previous year. The details are given here . During the current year (as on 30.11.2013) 9048 new enterprises have filed memorandum with an investment of Rs 134207.07 lakh to provide employment to 54707 persons.

 

              Variations in investment, production & employment in MSME sector over the last 7 years is shown in the figures 1 &2. The Investments and production had been increased since 2008-09 but employment generated is almost constant. This shows that the MSME sector in the state is more capital intensive rather than labour intensive. The data is given  here [Fig 1: Investment, Production & Employment in MSME sector over 2007-13] [Fig 2: MSME units & Employment generated in MSME sector over 2007-13]

  

                In Kerala, during the current year (as on 30.09.2014) 6944 new enterprises have filed memorandum with an investment of Rs. 114829.70 lakh to provide employment to 39651 persons. The total number of working SSIs/MSMEs registered in Kerala as on 31.03.2014 is 234251 ie. 7% more than 219444 that of previous year.  Out of the total SSIs/MSMEs, 3.8% are promoted by SCs, 0.7% by STs and 25% by women entrepreneurs. The total investment was ` 1435301 lakh in 2013-14 against ` 1212674 lakh of previous year indicating an increase of 18% while the total value of goods and services produced was ` 5084827 lakh which indicates an increase of 17% over ` 4336994.79 lakh of previous year. The total number of employment generated was 1190944 while in the previous year it was 1103126 indicating an increase of about 8%. The details are given in here      

 

            According to the recent reports published in the Economic Review 2014, the MSMEs sector showed a consistent growth of 11% till 2010-11, whereas growth rate was 19% in 2011-12 and 14% in 2012-13. In India, service sector have grown up very rapidly. As per the latest estimates (2014) MSMEs contribute 30% to the GDP in the Services Sector. The Ministry of MSME has been allocated outlays of   Rs. 2,700.00 crore, Rs. 2,835.00 crore, Rs. 2,977 crore and Rs. 3,327.00 crore for 2011-12, 2012-13, 2013-14 and 2014-15 respectively for promotion of MSMEs in the country. During Twelfth Five Year Plan an outlay of Rs. 24,124.00 crore has been allocated for Ministry of Micro, Small and Medium Enterprises (MSME), which represents an increase of 133.53% over the XIth Five Year Plan allocation of Rs. 10,330.00 crore.             

 

           The Data are given here: [Trends in investment, production & employment in MSME sector over the period from 2011-12 to 2014-15 and the number of MSMEs registered for the same period]

 

           According to Economic Review report 2015, the Fourth All India Census of the MSME total number of MSM enterprises were 3.61 crore, of which 0.16 crore are registered enterprises. These MSMEs, contribute 37.5 per cent of India’s GDP, have a critical role in boosting industrial growth and ensuring the success of the Make in India programme. A number of schemes are being implemented by Ministry of MSME, Government of India, for the establishment of new MSMEs and growth and development of existing ones. 

 

          During Twelth Five Year Plan an outlay of 24,124.00 crore has been allocated for Ministry of MSME, which represents an increase of 133.53% over the XIth Five Year Plan allocation of 10,330.00 crore. The Ministry of MSME has been allocating outlays of 2251.00 crore, 2610.00 crore and 2612.51 crore for the years 2013-14, 2014-15 and 2015-16 respectively under Plan for promotion of MSMEs in the country.

 

          The number of New Enterprises filed Memorandum under MSMED Part II in Kerala during the year 2014-15 was 15455, 3.05% more than that of previous year which was 14997. Out of 15455, 600 (4%) MSMEs were registered by SC, 85 (0.5%) by ST and 3735 (24%) by women. Investment on the sector increased by 7.57% to Rs.238794.75 lakh from Rs.222412.30 lakh in the previous year while employment generated decreased by 5% from 87789 to 83500 numbers. The value of goods and services produced in 2014-15 increased by 5.4% to Rs.675597.11 lakh in the previous year. The details are given here. In Kerala, during the current year (as on 30.09.2015) 6915 new enterprises have filed memorandum with an investment of Rs.157799.62 lakh to provide employment to 38280 persons. The details are given here. As on 31.03.2015, the total number of working SSIs/MSMEs registered in Kerala is 249696. Out of the total SSIs/MSMEs, 4% were promoted by SCs, 0.7% by STs and 25% by women entrepreneurs. The total investment was Rs.1673851.70 lakh while the total value of goods and services produced was Rs.6444288.56 lakh which indicates an increase of 26% over 50848.27 lakh of previous year. The total number of employment generated was 1274385 as on 31.03.2015. The details are given here.      

 

         The number of new enterprises filed Memorandum under MSMED Part II in Kerala during the year 2015-16 up to September 17, 2015 was 7705. Out of these, 301 (3.9%) MSMEs were registered by entrepreneurs belonging to the SC community, 31 (0.4%) by entrepreneurs belonging to ST and 1805 (23.42%) by women. Investment in the sector during the period was 1,29,356.95 lakh while employment generated and the value of goods and services produced were 45407 Nos. and 3,38,001.36 lakh respectively. The details are given in here.

 

          As on September 17, 2015, the total number of working SSIs/MSMEs registered in Kerala are 2,57,466. Out of the total SSIs/MSMEs, 3.84per cent were promoted by SC entrepreneurs, 0.72per cent by STs and 24.97per cent by women entrepreneurs. The total investment was 17,98,646.38 lakh while the total value of goods and services produced was 67,65,143.93 lakh and the total number of employment generated was 13,18,666 Nos. The details are given in here.

 

      EM Part II had stopped in DIC from September 18, 2015 and online registration in UdyogAadhar has started. From September 18, 2015 till March 31,2016 the number of UdyogAadhar Memorandum filed were 11317 Nos with investment in plant & machinery of 1,90,735 lakh and the employment generation of 75402 nos. (www.udyogaadhar.gov.in). The details are given in here. Trends in investment & employment in MSME sector over the period from 2011-12 to 2015-16 is shown below:

 

Production, Investment & Employment in MSME sector, 2011-12 to 2015-16

 

                                               Source: Directorate of Industries &Commerce

 

             The investment in the sector during the period from 2011-12 to 2014-15 has increased on an average by 9.73 percent. The investment has shown a steady upward trend over the period. The value of production shows an enormous increase of 25 percent during 2013-14. The employment has remained more or less constant over the period. The value of production and employment generation were at their peak during 2013-14.

 

             The rate of growth of the number of MSME units has been increasing though at a declining rate from 2011-12 to 2014-15. However for the year 2015-16 from April- September 2015 there has been a growth rate of 10.95 % that is from 6944 as on September 2014 to 7705 as on September 2015 and is shown below:

 

Growth rate of MSME units registered in MSME sector over the last 4 years

 

          The growth rate of employment generated over last 4 years is given below. There has been increase in employment generation for the years 2012-13 and 2013-14. But the employment generated has decreased by 4.88 percent in 2014-15. However for the year 2015-16 from April- September 2015 there has been a growth rate of 14.51 percent, that is, from 39651 as on September 2014 to 45407 as on September 2015.

 

Growth rate of Employment generated in MSME sector over the last 4 years

 

Source: Directorate of Industries & Commerce

                 

                         According to DIC, 15535 new MSME units were started in Kerala in 2016-17 with a total investment of Rs.138,711.73 lakh, and generating employment for 57,445 persons. A total of Rs.1,691.98 crore was provided for the development of the MSME sector in the 12th Five-Year Plan period and the expenditure incurred was Rs.152.38 crore (90.02 per cent).The details shown below:

 

Number of Micro, Small and Medium Units Registered Under Manufacturing and Services Sector, 2016-17

 

      

District wise achievements

 

           District wise analysis reveals that during the year under review, Ernakulam occupies highest position in all aspects with 1878 new MSME units and Idukki was at the lowest position except in total investment. Idukki has only 193 new MSME units. The Wayanad District shows the minimum investment of Rs 3296.74 lakh. But the maximum number of SSI/MSME units is in Thiruvananthapuram with 29720, Thrissur at second position. District wise investment, Value and Employment of Enterprises registered in Kerala during 2012-13 and 2013-14 (up to 30.09.2013) are given here.

 

        District wise analysis reveals that during the year under review, Ernakulam occupies highest position in all aspects with 2248 new MSME units and 15468 numbers of employment generated and Idukki was at the lowest position with 302 new MSME units and 1608 numbers of employment generated. Wayanad District shows the minimum value of goods and services produced of 7837.90 lakh.

  

         District wise analysis reveals that during the year under review, Thiruvananthapuram occupies highest position with 298 new MSME units and Ernakulam tops in numbers of employment generated with 10105 and Wayanad was at the lowest position with 184 new MSME units and 777 new jobs generated. In case of online registration from September 18, 2015 to March 2016 Ernakulam occupies the top position in all aspects with 2129 new MSME units, 48371lakh investment and 18857 employments generated. The details are given here.

 

 

                  Based on the Economic Review 2017, Ernakulam occupies the top position with 2267 new units and 8981 employees in the MSME sector. Wayanad was at the lowest position with 216 new MSME units, generating employment for 634 persons. The details are given are given here.

 

Industrial Growth 2011

 

            It had been a satisfying year for industry and allied sectors in Kerala. While, the manufacturing sector for the country as a whole registered a growth rate of 8.2% during 2010-11, in Kerala it recorded a wee bit higher at 8.74%.According to the statistics report published by the department of Economics and Statistics, the growth rate for the period from 2005-06 to 2010-11 averaged 7.9% at constant prices and 15.66% at current prices. The contribution of the manufacturing sector to GSDP at constant and current prices during 2010-11, was 8.28 %t and 9 % respectively.The income from manufacturing sector to GSDP and is growth rate are given here 

 

 

            According to the latest estimates available on the Index of Industrial Production (IIP), the index of mining, manufacturing and electricity registered growth rates of 1.8 percent, 0.2 percent and 2.8 percent respectively during second quarter of 2012-13 as compared to the growth rate of (-) 4.1percent, 3.4 percent, and 10.5 percent in these industries in second quarter of 2011-12. The key indicators of construction sector, namely, cement production and steel consumption have registered growth rates of 5.1 percent and 2.3 percent respectively during second quarter of 2012-13. In Kerala, the manufacturing sector recorded a decline in growth rate of nearly 13.5 percent in GSDP at current prices during 2011-12 compared to the growth of almost 15 percent in the previous year. The contribution of income from manufacturing sector to GSDP at constant and current prices during 2011-12 is 7.4 percent and 7.3 percent respectively. The income from manufacturing sector to GSDP and its growth rates from 2007-08 to 2011-12 are given here. A drastic decline can be observed in the growth rate of manufacturing during 2009-10 and after that there was an increase and again declined during 2011-12. 

 

                                     In Kerala the manufacturing sector registered a growth rate of 12.4 percent at current prices during 2012-13 compared to the growth rate of 15.4 percent in the previous year. The contribution of income from manufacturing sector to GSDP at constant and current prices during 2012-13 was 7.7percent and 7.6 percent respectively. The income from manufacturing sector to GSDP and its growth rates from 2007-08 to 2012-13 are given here. The percentage contribution of Manufacturing sector to GSDP from 2007-08 to 2013-14 did not show a definite trend. A drastic decline can be observed during 2009-10 and after that there was an increase, which again declined during 2011-12 as shown here                             

 

          As per Quick Estimate of Gross Value Added (Economic & Statistics Department) the manufacturing sector of Kerala grew by 12.33 per cent at current prices during 2014-15 compared to 6.92 per cent in the previous year. At constant prices (2011-12), the sector registered a growth of 8.92 per cent in 2014-15 as against 1.97 percent in 2013-14. The share of manufacturing sector to GVA at constant and current prices during 2014-15 was 10.82 per cent and 10.19 per cent respectively. The income from manufacturing sector to GVA from 2011-12 to 2014-15 is given here. The trend in growth rate of income from manufacturing sector in Kerala on the basis of GVA at constant prices for the period from 2012-13 to 2014-15 is shown below. The income from manufacturing sector in Kerala which registered 12.47 per cent growth in 2012-13 witnessed a decline during 2013-14 (1.97 per cent) and recorded a moderate growth of 8.92 per cent during 2014-15.

 

Industries in Kerala: Kerala, with all its limitation, is putting efforts for speedy Industrial Development in the state. traditional industries are handloom, cashew, Coir and Handicrafts where the persons employed are from weaker sections of the community. Other important industries are rubber,tea, ceramics, electric and electronic appliances, telephone cables, transformers, bricks and tiles, drugs and chemicals, general engineering, plywood splints and veneers, beedi and cigar, soaps & oils, fertilizers and khadi and village industry products.There are a number of manufacturing units for production of precision instruments, machine tools, petroleum products, paints, pulp paper, newsprint, glass and non-ferrous metals.Principal export products are cashew nut, tea, coffee, spices, lemon grass oil, seafood, rose wood and coir. The land of Kerala is endowed with a number of deposits of good quality china clay and beach sands containing a variety of valuable minerals. Heavy mineral sands and china clay contribute more than 90 percent of the total value of mineral production in the state. Kerala possesses one of the world – class deposits of mineral sands in the coastal tracts between Neendakara and Kayamkulam. Gold occurs in Kerala both as primary and placer deposits and the known occurrences are mainly in Wayanad and Nilambur regions.

 

1. Handicraft industry : Handicraft industry is one of the traditional industries of Kerala. Kerala has the tradition of making beautiful handicrafts with ivory, bamboo, palm leaves, seashells, wood, coconut shells, clay, cloth, coir, metals, stone, lacquer ware, and so on. Many old handicraft classics can be seen in palaces, old heritage homes and museums in the State. A vast majority of the traditional artisans belong to socially and economically backward classes.

 

Importance of Handicraft Industry: Kerala State Handicrafts Apex Co-operative Society (SURABHI), Handicrafts Development Corporation, and Artisans Development Corporation are the major agencies for the promotion of the handicraft industry in Kerala.

 

2. Bamboo Industry: Bamboo is a highly productive renewable and eco-friendly resource and has several applications. It is widely used in environment protection, as a nutrient food, high-value construction material and in about 1,500 other applications. It is estimated that about 2.5 billion people use bamboo in one form or the other at the global level. Advanced research activities are conducted to utilize bamboo for efficient fuel generating system.

 

                               In Kerala, 28 species of bamboo are found. Bamboo from the Kerala forest are being supplied mainly to the pulp and rayon units under concessional rates. It is estimated that there are about one lakh people in the State dependent on bamboo for their livelihood. A unique feature of Kerala is that 67.3 percent of the extracted bamboo comes from home gardens rather than from the forests (Source: http://www.keralabamboomission.org).

 

3. Handloom Industry: Among traditional industries of Kerala, handloom sector stands second only to the coir sector in providing employment. Kerala’s textile industry comprises traditional handloom sector, power loom and the spinning sector. The handloom industry in the State is mainly concentrated in Thiruvananthapuram and Kannur District and in some parts of Kozhikode, Palakkad, Thrissur, Ernakulam, Kollam and Kasaragod Districts. The industry is dominated by the co-operative sector, covering 96 per cent of total looms. The remaining 4 percent of handloom units are owned by industrial entrepreneurs.

 

4. Cashew:   Cashew is an important commercial horticulture crop of India. The overall production of raw cashew nuts in India during 2010-11 was estimated at 653000 MT as against the estimated production of 613000 MT in 2009-10, showed an  increase of 6.53 percent. Kerala has a long tradition both in cashew cultivation and cashew nut processing.  Though the production of raw cashew nuts  in Kerala shows an upward trend, during 2010-11 it has increased from 66000 MT in 2009-10 to 71000 MT. An estimate of domestic production of raw cashew nuts in various states during 2010-11.The total export of Cashew Kernels from India during 2010-11 was 91559 MT, valued at Rs.2598.15 crore which registered a heavy decline of 15.32 percent in quantity and 10.59 percent in value as com-pared to the previous year.  Similarly, the total export of cashew kernels from Kerala during 2010-11 was 49692 MT valued at Rs.1417.28 crore.  It showed a decreasing trend of 3.2 percent in quantity and 4.7 percent in value.  Nearly 54 percent of total exports of India is from Kerala. The details of export of cashew kernels from Kerala and India from 2000-01 to 2010-11 are:

 

Export of Cashew Kernels from Kerala and India from 2000-01 to 2010-11 

 

Export of Cashew Kernels from Kerala and India      

 

                  Kerala during 2014-15, was at the 5th position in production of cashew nuts, after Maharashtra, Andhra Pradesh, Orissa and Karnataka, with a production of 80000 MT. The area under cultivation of raw cashew in Kerala is 84530 ha during 2014-15. Among the states Maharashtra and Andhra Pradesh have the major share of the total area under cashew cultivation. Production and yield of cashew in the states which are new to cashew cultivation, like Maharashtra, Andhra Pradesh, Odisha and Tamil Nadu have been increasing and with the state government’s support, these states were adopting high yielding variety seeds for plantation, which gives them high yield per acre in shorter time periods. Major cashewnut growing belts in the State are Kasaragod, Kannur, Malappuram, Kozhikode, Palakkad, Thiruvananthapuram and Kollam and recommended varieties of cashewnut are Madakkathara-1,2, Kanaka, Dhana, Amrutha, K-22-1 and Vridhachalam-3.

 

Exports of cashew kernels from Kerala has increased slightly both in terms of quantity and value, during the year 2014-15. In 2014-15, the export of cashew & cashew kernels through Cochin port was 68150 MT, while it was 65679 MT in 2013-14. The import of raw cashew was 213106 MT as against 188485 in the previous year, which is 212% more than the export.

 

                  The major centres of cashew processing in India are in the States of Kerala, Karnataka, Goa, Maharashtra (all along the West Coast); Tamil Nadu, Andhra Pradesh, Orissa (all along the East Coast), West Bengal, Chhattisgarh, Gujarat, Jharkhand, and the North Eastern States. At present, the area under cashew is 10.4 lakh ha with a production of 7.8 lakh MT and productivity 753 kg/ha. India needs about 16.00 lakh tons of raw cashew nut to meet the requirements of nearly 1,800 medium to large and 2,200 on farm level processing units. The balance requirement to the tune of 8.9 lakh MT of raw cashew nuts is being met by importing raw nuts from African and South East Asian countries. In 2016-17, India imported 7.7 lakh MT of raw cashew nuts.

(Source: DCCD, Kochi).

 

                        According to DGCI&S figures (Source: CEPCI, Kollam), cashew kernels exported from India in 2015-16 and 2016-17 were 96,346 MT and 82,302 MT respectively and they were valued at Rs.4, 952.1 crore and Rs.5, 168.8 crore respectively compared to 2015-16. Exports in 2016-17 decreased by 15 percent in quantity and increased by 4 percent in value. The major international markets for cashew kernels processed in India in 2016-17 were United States of America, United Arab Emirates (UAE), Japan, Saudi Arabia, Netherlands, France, Korea Republic of Germany, Belgium, Spain etc. Foreign exchange earnings of India from cashew industry, for the period from 2007-08 to 2016-17 is given here.

 

                       Among the major raw cashew producing states, the production and productivity is the highest in Maharashtra. Majority of plantations in Maharashtra make use of clones of high yielding varieties, adopt good management practices and provide irrigation facilities. According to DCCD figures, as on 2016-17, Kerala ranks 5th in the production of raw cashew nuts. The State wise estimated area and production of cashew nut in India is given here.

 

                    In 2016-17, the export of cashew and cashew kernels through Cochin port was 38,054 mt. Kerala accounts for 11 percentage of cashew production and 35 per cent of all cashew processing units in India. The State needs around 6 lakh mt of raw cashew in a year for catering to its 800 factories. As per the estimates of DCCD, Kochi, the area under cashew in Kerala is 90,870 Ha with a production of 83,980 MT and the productivity is 962 Kg/Ha. (Source: DCCD, Kochi). However, as per statistics of Directorate of Economics and Statistics, the area under cashew in Kerala is 41,660 Ha with a production of 27,944 MT and the productivity is 671 Kg/Ha. In case of Directorate of Cashew Nut and Cocoa Development, Kochi, basic data survey was carried out in 1990 to find out the exact area under cashew. Based on the data arrived in 1990, area expansion by the developmental departments in subsequent years is added to arrive at the current area under cashew. The production data is collected based on research parameters on sample survey basis. The data from both these directorates needs reconciliation.

 

               With respect to production of raw cashew nuts, Kerala had the top rank among Indian states in the early 1990’s, but its position has now dropped to the 5th, behind Maharashtra, Andhra Pradesh, Orissa and Karnataka. Area as well as production of cashew for the period from 2010-11 to 2016-17 are depicted below:

 

Area under Cultivation and Production of Cashew in Kerala

Source: Directorate of Cashew nut and Cocoa Development, Kochi and Cashew Export Promotion Council, Kollam. 

 

5. Beedi Industry: Beedi Industry in Kerala is concentrated in Kozhikkode, Kannur and Kasaragod.  The Kerala Dinesh Beedi Workers Central Co-operative Society Ltd. was the only agency in the State to promote beedi industry in the organized sector. During the period under review, the society concentrated on the upliftment of units for the diversified products for the rehabilitation of  about 7000 beedi workers under the society. The society distributed Rs.466.03 lakh as Relief Pension to beedi workers and  Rs.600.00 lakh as gratuity to the workers who retired from service from the year 2006-07 to 30.09.2009.

 

As part of product diversification programme, the Society started a Dinesh Garment unit, Dinesh Umbrella unit and Dinesh Foods. Dinesh Garment unit, Thana, Kannur provided employment to 150 workers. During 2010-11, the profit of the unit was Rs.57.58 lakh and the sales turnover was Rs.6.52 lakh. Two more units of Dinesh Garment at Chala , Kannur  and Cheruvathur, Kasargod which will provide employment to 250 workers were initiated functioning with training to workers and the development activities of Dinesh Cocunut milk unit is also started.
 

Industrial Export: Performance of the export of Cashew Kernels during 2006-07 has recorded a negative growth of 16 per cent compared to the previous year. At the same time export of Tea, Coir products, Coffee etc. recorded positive growth. Details of major commodities exported from Kerala (through Cochin Port ) for 2005-06 and 2006-07 are given here.

 

 

                  As per the export-import statistics, the share of agricultural products in the total export earnings of the country in 2015-16 was 6.84 percent and cashew kernels ranked 6th among them contributing 4.28 percent of the agri product exports. The total exports of cashew kernels from India in 2016-17 was 82,302 MT valued at Rs.5168.78 crore as against 96,346 MT valued at Rs.4952.12 crore in 2015-16. There has been a decrease of 14.58 percent in quantity and increase of 4.38 percent in value terms. The major markets for Indian cashew kernels in 2016-17 were USA, UAE, Japan, Saudi Arabia, Netherlands, France, Spain, Germany, Belgium, Korea, etc. In the history of Indian cashew industry, it is the first time that UAE became the largest importer of cashew kernels from India moving USA to the second position. UAE’s share is 23 percent of the total and that of USA is 21 percent. Among major markets, Singapore, Qatar, Algeria and Jordan recorded an increase and other major markets showed a decreasing trend in terms of quantity.

 

Export of Cashew Kernels – Kerala and India (2010-2017),

Quantity in MT, Value in crore 

 

 

Year

Kerala*

India

Share of Kerala
(per cent)

Quantity

Value

Quantity

Value

Quantity

Value

2010-11

56578

1478.67

105755

2819.39

53.50

52.45

2011-12

68655

2295.84

130869

4383.82

52.46

52.37

2012-13

53624

2138.47

100105

4046.23

53.57

52.85

2013-14

65679

2861.75

114791

5058.73

57.22

56.57

2014-15

68150

3098.75

118952

5432.85

57.29

57.04

2015-16

50652

2579.49

96346

4952.12

52.57

52.09

2016-17

38054

2415.32

82302

5168.78

46.24

46.73

*Export through Cochin Port.                                                  Source: The Cashew Export Promotion Council of India

                 

Exports of Coffee: Export of coffee from India during 2016-17 was reported as 35,5665 MT (provisional) valued at Rs. 5,634.84 crore. There is an increase of 11.83 percent in quantity and 8.87 percent in value over the previous year in which export was 31,8039 MT valued at Rs. 5,175.61 crore. Export of coffee from Kerala through Cochin Port during 2016-17 was 5,5874 MT valued at Rs.885.22 crore, as against 54720 MT valued at Rs.858.16 crore in 2015-16. The 3 percent decrease in the value is due to the fall in price of coffee.

 

Exports of Tea: Export of tea from India during 2016-17 was reported as 227,630 MT valued at Rs.4,632.50 crore against 2,329,209 MT valued at Rs.4,493.1 crore in 2015-16. The export slightly decreased by 2.27 percent while the value increased by 31.02 percent. Export of tea from Kerala ports stood at 69,706 MT valued at Rs.1,025.34 crore in 2015-16 as against 69,343 MT valued at Rs.948.78 crore in 2014-15. The exports slightly increased by 0.52 percent in volume and 8.07 percent in terms of value.The details are shown below:

 

Export of Tea from Kerala Ports and India (2010-2017),

Quantity in MT, Value in crore 
 

Year

Kerala

India

Quantity

Value

Quantity

Value

2010-11

48104

552.12

222019

3058.31

2011-12

71784

742.87

214355

3304.83

2012-13

69017

904.62

216231

4005.93

2013-14

75036

1064.67

225764

4509.09

2014-15

69343

948.79

199077

3823.64

2015-16

69706

1025.34

232920

4493.10

2016-17*

-

-

227630

4632.50

*April-September.                                                                                                                  Source: Tea Board, India.

 

                 

Exports of Spices: Indian spices exports continue its upward trend and attained an all time record in 2016-17 in both volume and earnings. During the above period, a total of 947,790 MT of spices and spice products valued at Rs. 17,664.61 crore was exported from India, as against 843,255 MT with a value of Rs. 16,238.23 crore in 2015-16. It indicates an increase of 12.39 percent in volume and 8.78 pe cent in value.

 

                             The export of spices from Kerala (through Cochin and Thiruvananthapuram Ports) decreased to 84,656.95 MT valued at Rs. 3,857.88 crore in 2016-17 from 10,0076 MT with a value of Rs. 3,905.18 crore during 2015-16, registering a decline of 1.21 percent in value and 15.41 percent in volume. Pepper, cardamom, chilli, turmeric, coriander, cumin, fenugreek, other seed spices, nutmeg and mace, other miscellaneous spices, curry powder/mixture, spice oils and olernes and mint products are the main spices exported through Kerala’s ports. Even though total export of spices from Kerala decreased during 2016-17, export of certain spices like turmeric, cumin, celery, fennel, fenugreek, garlic, nutmeg, mace and curry powder/mixture increased both in volume and value during the review period compared to the previous year. 

   

Small-Scale Industry (SSI): Small-scale Industry has emerged as a major determining factor in the growth of our economy in terms of employment generation. The sector contributes maximum production for domestic and export markets and produces variety of products ranging from traditional to hightech. Out of the total number of registered working SSI units 195960 units, 41305 units are promoted by women, 6834 by SCs, 1414 by STs and 146407 by others. The additional investment made by the SSI units during 2006-07 (up to 1.10.2006) is Rs.8815 lakh and the employment provided is 12352. The details of district wise number of working SSI units during 2006 - 07 (up to 1.10.2006) and as on March 2007 with investment, employment provided and value of production are given in the table .The working status of SSI units in Kerala is given in the table.Out of the total 195960 units registered so far in the State, the number of units identified as sick as on March 2007 is 7586. Among the sick units, 2376 units are registered for revival and 1280 units are revived. The District Industries Centres revived eight sick units at Kollam, four at Wayanad, two at Kannur and one at Thrissur during 2006-07 is given here.

 
 

 

Special Economic Zone: Special Economic Zone provides high quality and world class infrastructure designed to render cost of products, delivery, logistics and transactions competitive on global basis. The special policy disseminated by the Central Government provides for setting up of SEZs in the public, private, joint sector or by State Governments. The units operating in Special Economic Zones are excluded from the sectoral restrictions prevalent in the conventional manufacturing sector. Apart from this, these units also enjoy other benefits like single - window clearance, 100 per cent exemption of income tax for the first five years, self certificate of activities exemption from routine customs check etc. In India , the total number of valid formal approvals of Special Economic Zone as on August 2007 is 366 of which 142 are notified SEZs. The total investment made in the notified Special Economic Zones comes to Rs.46705 crore with an employment of 40153 during 2006-07.The export from these Special Economic Zones was for Rs.34787 crore with a growth of 52 percent over the previous year.

 

Cochin Special Economic Zone (CSEZ): The Cochin Special Economic Zone (CSEZ) is one of the seven Special Economic Zones of Central Government. It was set up as a Multi - Product Export Processing Zone in 1984 to boost exports from the State. The Cochin Export Processing Zone was converted into a Special Economic Zone in November 2000. Spread over an area of 103 acres in the newly emerging Kakkanad, mere five kilometers away from the city center, on the Cochin Seaport Airport Highway, it is well connected to the National Highway network. CSEZ is a multi product zone with 81 working units and four under implementation units (as on 31.3.2007) in sectors as varied as software, hardware, engineering, readymade garments, food processing, rubber products, gem & jewellery, manufacturing and with more than 7800 employees making it the single largest employment destination in the State. Both Multi National Corporations and domestic corporates have set up their units in this zone. Export during 2006-07 was of Rs.1037.52 crore as against Rs.696.00 crore during 2005-06, thereby registering a growth of 49.07 percent. During 2006-07, 61 units have been in operation and 19 under implementation units in Kerala. One unit operates in Lakshadweep. Export from EQUs of Kerala was of Rs.1071 crore during 2006-07 and the export during 2007-08 is projected as Rs.1250 crore. Five Special Economic Zones have been notified in Kerala during 2006-07, of which three are IT / ITES zones and two Port Based Zones. After the Special Economic Zone Act followed by SEZ Rules of Government of India, along with other States, Kerala has also experienced a rapid increase in the number of proposals and approved SEZs. Eight SEZs have been notified for Kerala after SEZ Act 2005 and the details are given here. 

 

 

 

 Classification of industries for consent managemet

 Final Document on Revised classification of Industrial Sector under Red, Orange, Green and White Categories

 

Useful links


http://www.ksidc.org

 

(Source : MoEF & CC,SoE 2005, Economic Review 2007-2017)