The Hindu Business Line : Moderate growth in tourism, food processing in Kerala

Kochi, April 16 The findings of the Bi-annual Industry Monitor Survey, conducted by CII-Southern Region for October 2007-March 2008, revealed a moderate growth in tourism and food-processing industry in Kerala.

The top five sectors surveyed in the State were rubber, coir, chemical & fertilisers, tourism, and food processing.

Tourism industry

The tourism industry performed moderately during October 2007–March 2008. The inflow of tourists increased by 5 per cent resulting in increased revenues of 8-12 per cent and an occupancy rate of 2-3 per cent.

The next six months are predicted to be a lean season for the tourism industry which is expecting a decrease in demand, inflow of tourists, revenue and occupancy rate by 5 per cent each during April 2008-September 2008.

The industry feels that improved road infrastructure and availability of skilled workforce will enhance the growth of the tourism sector.

Food processing

The food processing industry also recorded a moderate performance, as it witnessed an increase in its production by 5-10 per cent and sales up to 5 per cent.

However, the exports declined by 20-25 per cent.

The industry expressed its concern over the lack of skilled manpower and infrastructure.

Chemicals and fertilisers

The production of chemical and fertilisers industry went up by nearly 10 per cent. The sales and exports went up by 10-20 per cent and up to 10 per cent respectively.

Rising costs of raw materials is a key concern of the industry, especially SSI units, which are pushed to face the competition from large players.

Rubber

The rubber industry witnessed a downward trend in most of its performance parameters and the production declined by 20-25 per cent, sales by 10-15 per cent, export by 30 per cent and capacity utilisation by 20 per cent.

The 15 per cent decline in price brought down the profit margins by 10-12 per cent.

The rising price and the declining production are major concerns of the industry.

The industry leaders suggested that the rubber import should be rationalised in such a way that it will not affect the domestic rubber industry.

Coir

The production in the coir industry grew by 15 per cent and subsequently, the sales by 15-20 per cent. The capacity utilisation levels went up by 10-15 per cent and the inventory by 10 per cent.

The industry predicts a flat trend in demand during April to September in production and sales.

The exports are expected to decline up to 3 per cent.

The declining availability of raw materials is one of the major constraints for the industry and it suggests improved road and rail connectivity and uninterrupted power supply to enhance the growth, the survey report said.

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