All India Rubberised Coir Manufacturer's Association-Kerala Chapter president George L Mathew told The Financial Express that the imposition of excise duty on rubberised coir industry would lead to increased competition mainly from synthetic polyurethene foam which is based mostly on imported raw materials whereas the rubberised coir industry is fully indigenous.

In the memorandum submitted to the finance minister, the association has pointed out that the excise duty imposition will lead to loss of employment in rural areas and erosion in income and wealth in the coconut producing areas. The total revenue by way of Excise Duty will be meagre as it will not exceed Rs 10 to Rs 15 crore a year, the memorandum pointed out.

It also pointed out that rubberised coir is eco-friendly and the end-product is bio-degradable where as its competing product, synthetic foam is non-biodegradable and its use has been restricted in many advanced countries due to its toxic and pollutant nature.

"We understand that as per World Trade Organisation norms, eco-friendly products would be encouraged for their growth with no taxation and duties," the memorandum said.

The memorandum argued that while the coir industry can be termed 100 per cent agro-based industry, the rubberised coir manufacturing was only a value addition to the coir industry.

It added that by using the coconut fibre, rubberised coir industry has been promoting the creation of wealth in rural coconut growing areas among the poorest of the society.