Kerala 2005 - of Planning Commission

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availability of raw material. However, such a situation can
be overcome to a limited extent, if the areas of comparative
disadvantage are located and compensating measures are
thought through. Wage cost is often mentioned as a source
of comparative disadvantage. Studies show that wage
costs (in terms of product wage i.e. wages paid as a share
of value added per worker) are not higher in Kerala in the
organised manufacturing sector. It is indeed true that wage
costs are comparatively higher in the small-scale and the
informal service sector such as handling materials. One
generalised solution to this problem is the need to introduce
technological changes and innovation in such areas as
production and marketing. This can be particularly relevant
in locally available raw material-based industries. Examples
of this are rubber, wood and coconut-based industries.
There are a number of small firms as well as a small
number of clusters around rubber-based activities
(mainly footwear), but the scope for the manufacture
of a number of products are reported to be quite
considerable. These are in such products as special
grades of latex concentrates, rubber compounds (master
batches), block rubber or technically specified rubber,
gloves and condoms, etc. In fact, it has been reported
that there are over 35,000 different products made out
of rubber and most of them can be grouped as non-tyre
products.
The wood-based industry, again dominated by firms in
the unorganised sector, is another one with considerable
potential for development. The high rate of growth of
construction activity, especially buildings, has given
rise to a high growth in the consumption of wood
products. Kerala consumes 2.1 lakh cubic metres of
imported hard wood that comes to around 10 per cent
of the country’s import. In addition, there is a rubberwood
based industry in Kerala with an annual supply of
6.75 lakh rubber timber (i.e. 35 per cent of the supply
of stem wood). More than half of this is currently used
for packaging and the rest for plywood and other uses.
There is considerable scope for manufacturing highvalue
products such as furniture that calls for modern
processing, technology and organisation of production.
A cooperative in Kerala (Rubco) has already successfully
entered this market and enjoys demand both within and
outside Kerala. The use of coconut wood is perhaps the
least of all wood available in Kerala. Given its sharp
and strong fibres, it is not amenable to processing in
Table 8.3: Industrial Parks in the Making
S. No. District/Location Selected Industries
1 Thiruvananthapuram Wood-based, printing, silk cloth, reed-based products and handicrafts
2 Kollam Food processing, wood-based
3 Pathanamthitta General engineering, food processing
4 Alappuzha Bronze and stone vessels
5 Kottayam Food processing, leather, rubber-based, readymade garments
6 Idukki Garments, limegrass oil, bamboo-based
7 Ernakulam Food processing, rice mills, wood and plywood, rubber, plastics, electrical and electronics, printing
8 Thrissur Diamond polishing, re-threading machines, tiles, pottery, eood-based and notebooks.
9 Palakkad Agricultural implements, bronze vessels, bamboo-based, food processing.
10 Malappuram Garments, wood-based, rubber-based, food processing, and general engineering
11 Kozhikode PVC footwear, jewellery, and food processing
12 Wayanad Food processing, garments, bamboo-based
13 Kannur Handlooms and garments, coir mattress, printing and plywood
14 Kasaragod Pottery, mats and related products