Authors:Muraleedharan, P.K; Anitha, V; Rugmini, P
Abstract:A change in the policy approach of the Indian government from providing protection to capacity enhancement as a consequence of globalization since 1991 has left its mark on all sectors in the economy. The rattan-based industry in Kerala, India which was initially the prerogative of the indigenous people has become more organised and market-oriented. A comparison of selected variables namely, the structure of capital, profitability, value addition, and marketing of the products before and after 1991 has revealed some interesting trends. The study highlighted the inefficiency of the cooperative sector during globalization because of its inability to withstand competition within the industry and to mobilise capital and also to overcome administrative weakness. The globalization process brought about change in the ownership pattern in the private sector. The cost of production indicated a reduction in the percentage share of raw materials and electricity due to lay-off. It also showed only a marginal increase in the percentage share of labour cost. In the marketing front, the industry has witnessed significant changes. Before 1991, the marketing of rattan products was mostly confined to within Kerala. But at present about 55 per cent units export their products to other states of which 20 per cent of them export to other countries also, aiming to get a higher price for the products. In addition, product diversification, sales promotion activities, like publicity through the print and electronic media, and quality control are being undertaken to capture the market. While globalization opens up new opportunities for the rattan industrialists, it has had an adverse impact on the livelihood security of the workers.
Keywords:canes and rattans; diversification; labour; marketing; ownership; policy; profitability; protection; qu