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District Industries Centre

District Export Action Plan for Thiruvarur District

District Profile

Thiruvarur district was formed on 01-01-1997 by carving out nine blocks from the composite Nagapattinam district and one block from Thanjavur district with Thiruvarur as district headquarters. It is a very small district with a total geographical area of 2097.09 Sq. Kms. constituting 1.6% of the total area of State This district shares boundaries with Nagapattinam district, Thanjavur district and Palk strait in south.

Agriculture continues to be the most predominant sector of the District economy, as 90% of the population is engaged in Agriculture and allied activities for their livelihood. The District has Net Area sown of 156732 hectares constitutes 74% percent of the total geographical area and the net cultivated area of around 3,22,859 Ha. Paddy is the principal crop of the district and the district forms part of the rice bowl of Tamilnadu.

The Government policy and objectives have been to ensure stability in agricultural production and to increase the agricultural production in a sustainable manner to meet the food requirement of growing population and also to meet the raw material needs of agro based industries. thereby providing employment opportunities to the rural population.

State Seed Farms at Deevambalpattinam, Nedumbalam, Kanchikudikadu, Keeranthi, Moongilkudi to multiply the breeder seeds and foundation seeds and distribute them for the further mass multiplication of these seeds as certified seeds for Paddy,Blackgram,Gingelly and Groundnut.Coconut Nursery at VaduvurThenpathi to produce and distribute good quality Dwarf and Tall Coconut Seedlings.

Bio- Fertilizer Production Unit at Needamangalam for production of

BioFertilizersuchasAzospyrillum(Paddy),Azospyrillum(Others),Rhizobium(Pulses),Rhizobium(Groundnut) in liquid and carrier based solid form to reduce the chemical fertilizer application and improve the soil health status.Fertilizer Control Laboratory at Thiruvarur to make sure that the Fertilizer produced and sold in the Private dealers and PACCS are taken and sent to Fertilizer Control Laboratory for analysis thereby restricting the movement Non-standard fertilizers.

More than 70% of the total work force is dependent upon agriculture. Around 14 % are cultivators and the rest agricultural labourers.

Thiruvarur District has been one of the Districts in the state with a creditable performance in agricultural production with the farmers relatively more responsive and receptive to changing technologies and market forces.

Thiruvarur has got natural gas deposits. Two large scale power generation plants and few more natural gas units have already been started in the district. Due to fluctuation in gas availability, further natural gas based units are not encouraged.

The district possesses 2452 hectares of land under forest constituting a meager 1.17 % of its geographical area and a meager 0.11 % of the forest area of the state. The entire forest area is located in Muthupet Block only. Timber is the only forest produce available.

Introduction

TamilNadu, an export hub since Sangam Era, accounted for 9% of the national exports in FY 2020-21, with a major contribution from automobiles, textile, machinery, etc. The export basket of Tamil Nadu is highly diversified with the top 10 products contributing to 70% of the export share. Based on ITC Trade Map, Tamil Nadu has an estimated untapped export potential of Rs. 1.6 lakh crore (USD 22 billion) Unlocking the export market share in the Champion Sectors, where the State has a competitive edge, would have a larger economic benefit. Thiruvarur District has the potential of Exporting Rice, Pulses, Coir, Marine Products, Ground Nut.

Export and Economy

India’s vision of becoming a USD5 trillion economy by 2024 and TamilNadu’s cherished dream of a trillion USD economy are intricately linked with an export-oriented approach. Export promotion is beneficial at a national and State level. It creates employment, enhances labor productivity, leverages economies of scale, accelerates technological progress, generates greater capacity utilization, improves the allocation of scarce resources throughout the economy, eases the current account pressures for foreign capital goods by increasing the country’s external earnings and attracting foreign investment, increases the total factor productivity, and consequently, the well-being of the country.

Policy Formulation

India is regarded as the fastest growing economy globally, and export has become a crucial constituent for this growth. Export-oriented policies have enhanced innovation and have been instrumental in increasing the country’s Foreign Direct Investment flows. It should be noted that National level export policy would not capture the complexities and the challenges faced by each state at the ground level. Export competence differs spatially across India; thus, export policies need to be more context-specific so that the state governments can identify the gaps and formulate a way forward to reduce such discrepancies. The growth-trajectory of our economy would be incomplete without considering the export ecosystem at the state-level. For a country as vast and geographically diverse as India, the state of preparation to strengthen exports needs to be understood at the regional level; a policy measure at the national level will not suffice. Each state needs to have its own policy measure, and understand its unique strength and valuable resources, so that exports get a shot in the arm at the regional level. The strategies and action plans are to be drafted at district level.

Export Promotion Strategy

TamilNadu has drafted and released TamilNadu Export Promotion Strategy in 2021. The state provides land allotment for companies with a clear roadmap for Export based business. Along with this, there are sector-specific export plans for industries such as Automobiles, IT and Marine products. Finally, the state government provides financial aid to deserving exporters on the recommendation of Export Promotion Councils, to meet legal costs and other associated expenses.

District Export Promotion Committee

Tamil Nadu has constituted District Export Promotion Committees chaired by the District Collector, in all districts. The Government of Tamil Nadu in conjunction with the Government of India has identified products with higher export potential for each of the 38 districts in the State which shall be supported by a district-wise export plan. DEPC has to act as a one-point facilitator for export promotion at the district level along with the SEPC to convert the district into an Export Hub. It has to

  • Prepare District Export Action Plan to avail support from the Department of Commerce/DGFT under the ‘District as Export hub initiative’. The District level plans will also include a strategy to enhance logistics and infrastructure at the district level and better utilization of the Market Access Initiative (MAI) Scheme of the Department of Commerce for inviting foreign buyers under reverse buyer-seller meets at the district-level, suitably gathering district level commodity and services exports data including through GSTN and Customs ICEGATE System and publishing District Export Matrix for each district on a quarterly basis by the State Government.
  • Ensure knowledge dissemination on periodic updates on regulations to exporters; conduct outreach programs targeted at the existing manufacturers and niche exporters, to impart the training on the basics of export processes and procedures, identification of product segments and markets
  • Constitute District level coordination committee to organize frequent stakeholder interactions with commodity boards/export councils to capture export-related issues and represent them to the State coordination committee
  • Formulate of District export desk – District export desk shall organize frequent stakeholder interactions with commodity boards/export councils to capture export-related issues and represent them to the State coordination committee Export Promotion Agencies Export Councils Guidance DGFT SEPC/DEPC Testing &Certifi­cations Export Inspection Agency NABL Financial Institutions EXIM Bank of India Chennai Customs Customs& Taxes TNTDP Technology Promotion & Development Port related services & storage Major ports in State Railways Central & State warehousing corporation Maritime Board Tamil Nadu ICD,CFS Highways Department. DIC, AE and AD are the trained person’s on Export guidance officers for facilitating the Entrepreneurs.

Formation of DEPC for Thiruvarur

As the first step in converting Thiruvarur into an Export Hub, the District Export Promotion Committee (DEPC) had been formed and notified by the Government of Tamil Nadu for the district. DEPC for Thiruvarur district notified vide G.O (Ms) No.29 dated 16.03.2020 has the following composition:

1. The District Collector, Thiruvarur – Chairperson
2. The Office of Zonal Additional DGFT, Chennai – Co-Chairman
3. General Manager, District Industries Centre, Thiruvarur – Convener
4. Lead BankManager,Indian Overseas Bank – Member
5.Representative of Coir Board , Government of India- Member
6. Representative, MSME – Chennai – Member
7. Representative, Department of Fisheries, Government of Tamil Nadu- Member
8.Representative, Department of Agriculture, Government of Tamil Nadu- Member
9.The Manager, NABARD,Tamil Nadu – Member

The DEPC constituted for steering the district towards becoming an Export hub, will meet once every six months. The Convener’s office will be the secretariat of the DEPC and records and files on the program will be maintained there as per laid down rules and procedures. The DEPC will formulate, co-ordinate and facilitate the implementation of various programs and projects of the District Export Hub Program. The DEPC will monitor projects, and develop systems for exporter facilitation within the district and act as a coordination authority with the various state and central Govt agencies and departments. The Committee, with the assistance from the sub-groups, will perform the role of resolution, escalation and monitoring of issues concerning exports from the district. DEPC will act as one point facilitator for export promotion at the district and report to State Export Promotion Committee (SEPC). DEPC will review the export performance of the district once in six months during its sitting and take necessary action to ensure that the desired export performance from the district is achieved and take remedial measures so that exports from the district is accelerated.

As a part of implementation of the District Export Action Plan, subgroups/sub-committees of each identified potential export product or for specific projects, will be created by the DEPC. The Subgroups will be tasked for working comprehensively on a project or a product. The sub-groups will comprise of Industry heads, implementing departmental officials, artisans and will mostly be chaired by the District collector or his representative. The Sub-groups have to not only frame proposals (vis-à-vis) the product or project assigned to them, but would also follow-up and monitor the implementation of the approved proposals. The various sub–groups proposed for the district are: sub-group on agro products, subgroup on marine, Sub-group on infrastructure, Sub-group on grievance redressal, sub-group on training, etc. The sub-groups will meet frequently (at least once every two months) directly or over video –conferencing and work on their agenda. The sub-groups will be the main drivers of the DEPC’s agenda & action plan and will be implementing the tasks assigned to it.

The base line export for the district is the exports of the year 2018-19 originating from the district and the target is to convert the district into an Export Hub. Data obtained from the GST, District Industries Centre, Thiruvarur, MSME, Govt of India, Chennai, MPEDA, Govt of India can be analyzed to understand the export trends in the district and undertaking targeted approach to resolve issues and increase export competitiveness.

Action Plan for Thiruvarur

This District Export Action Plan enlists the plan of action and strategies for converting the district of into a district with export potential and as a hub of export for the identified core products. The Aim is to achieve this through the DEPC, as a facilitating body for the purpose and by undertaking constructive district specific initiatives, implementing export oriented schemes & customizing export enhancing programs for the district. The ultimate goal is to convert district into an Export Hub. To make the District Export Action Plan relevant, and to achieve its goal, there needs for a proper understanding of district’s strengths, opportunities and export related challenges. Being Rice Bowl of Tamilnadu, varieties of traditional Rice can also be cultivated in future.

Economic Profile

Thiruvarur district’s economy is predominantly agricultural-based. Accounting for about 56% of the district output in 2016-17, the services sector dominates the economy of the district. The share of services has increased by 10 percentage points from 2011-12 to 2016-17. This district has seen a decrease in share of agriculture and allied sector since 2011-12. The industrial sector has seen almost no change in its sectoral share between2011-12 and 2016-17. The share of agriculture has gone down by almost 10% points, at a CAGR of negative 7% between 2011-12 and 2016-17. From 2013-14 to 2014-15, bumper crop production happened which saw an exponential rise in growth for those years.

At sector level, Real Estate, Trade and tourism, Construction, Agriculture & amp; BFSI are the major contributors to the district’s economy.

Agriculture and Allied Sector

Agriculture continues to be the most predominant sector of the District economy,as 90 percent of the population is engaged in Agriculture and allied activities for their livelihood. Agriculture and allied sector has growth has slowed at a CAGR of negative 7% between 2011-12 and 2016-17. The sector experienced huge growth in 2013-14 owing to strong crop production. The momentum continued until 2014-15 with a growth rate of 3%. Since this district is situated in the heart of the delta and one of the major producers of paddy, it is called the rice bowl of Tamil Nadu. Agriculture alone accounted for about half of the agricultural and allied sector in the district in 2016-17. The district has as an area of 3,28,869 Ha with a net cultivated area of around 3,22,859 Ha. Paddy, Blackgram, Greengram, Groundnut, Gingelly, and Cotton are the major crops growing in the district. The Production of Rice, Blackgram, Greengram, Groundnut, Gingelly, and Cotton viz., 35.43 Lakhs MT, 4462 MT, 11339 MT, 9503 MT, 967 MT, and 14761 MT respectively. Among the rice production Traditional rice covers 743 ha with 705 MT production. It is followed by Fishing, which accounts for 23% of the share. Muthupettai is the only block in this district in which includes 14 Marine Fishing Villages. Livestock accounted for 22 % of the share of agricultural and allied GVA in 2016-17.

Industrial Sector

Construction (86%) and manufacturing sectors(9%) account for almost all of the industrial sector output. The sector has experienced a stagnant growth with a CAGR of zero percent between 2011-12 to 2016-17. The key manufacturing sectors by output include Manufacturing of food products, grain mill products among others. The aforementioned sectors employ around 63 % of the workers according to the ASI 2014-15 data.

The large scale industries in this district are Southern Energy Development Corporation Limited in Nallur andTNEB Power Generation Plant, Kovilkalappal, Kottur Block. Medium Scale Enterprises like Southern India Edible oil, Karppur, Thiruvarur Golden Vats PVT limited, Mannargudi. TNCSC Modern Rice Mill, Sundarakottai, Mannargudi. TNCSC Modern Rice Mill, Thiruvarur. Tvarur Oils & Fats Limited, Adiyakkamangalam, Thiruvarur are present in the district. Since large scale industries are less, the scope for Vendorisation / ancillarisation is very limited.

Fisheries production

This district has a coast line of 47.2km. The district has good fishing potential in view of its rich coastal area. The inland fish production is more than coastal fish production and the production has increased steadily in the inland area but it has fluctuations in the coastal area. Further, Thiruvarur district have 31400 ha of Brackish water area, in which 6300 ha Potential area readily available for Aquaculture (as per www.fisheries.tn.gov.in).

  • No. of coastal blocks – 1
  •  No. of coastal centres – 13
  •  Marine fish production (tonne) – 2410
  •  Inland fish production (tonne) – 11700
  • No. of fisherman engaged (Marine/Inland) – 3244 / 4553

Potential Products

The Coir Industries, Agriculture Products and Marine Products as the main products with export potential to patronize and promote as a part of the “Districts as Export Hubs”.

Traditional Rice, Fine grain Rice, Blackgram, Groundnut, Coconut, and flour are the potential export products in the Thiruvarur District.

Traditional Rice viz., Karuppukavuni, Mappilai Sambha, Poongar, and Thooyamalli have an export market in Middle east countries due to their nutritional value.

Fine grain rice varieties have an export market in Middle East and South Asian countries viz., Singapore and Malaysia.

During the 2023-24 financial year, Rs. 29.87 crores valued Parboiled Rice, Blackgram, Jaggery, and Flour were exported from Thiruvarur District.

Challenges and Bottlenecks

Even though the district of Thiruvarur has a vibrant rural and coastal economy, it is not able to increasingly cater to the global market and taste. The district needs to harness its assets and turn its entrepreneurs into global players. Some of the challenges for exports found in the district are:

Sea Port infrastructure and connectivity:

The nearest port facility for Thiruvarur District is the Karaikal Port, which is part of the UT of Pondicherry. This port started operations in 2009 and has handled cargo such as coal, pet coke, raw sugar, fertilizer, cement, and project cargo and construction materials. However, the Port needs to improve its capacity and infrastructure in order to accommodate the agro and marine processed products for exports. The proposed NH67 Road is still not fully laid for many years and the work is on progress.

The feasibility study on cargo movement for small ships from Nagapattinam to Kankesanthurai, Sri Lanka, shows that the small ships can currently handle about 82,000 tons of cargo annually, requiring approximately 211 trips based on types of cargo, In the next five years, the total projected cargo volume is expected to rise to 123,000 tons, necessitating about 319 trips. This represents a substantial growth opportunity for trade. This increase presents a significant opportunity for expanding regional trade. Cargo barge and sailing ship transport to Chennai and other major and minor ports along the east coast of India will help the business community transport their goods at lower costs, reduce road traffic congestion, and provide an eco-friendly option for goods transportation.

Tamilnadu Maritime Board planed to dredge the channel as required and develop other necessary infrastructure at Nagapattinam Port soon. This will enhance the port’s capabilities and support the proposed initiatives.

Active utilisation of Nagapattinam Port can open opportunities for international commerce and attract larger vessels, amplifying economic growth.

Cold Storage

For Agro and Marine value addition to takes place, cold storage is important to increase the shelf life of the agro and Marine products, especially which it is to be exported. There is lack of cold storage facilities for agro products in the district of Thiruvarur resulting in minimal holding capacity. And due to lack of cold storage facilities, marine products from Thiruvarur districts are mostly transported to other places like Tuticorin, Kerala.

Lack of exposure and export promotion

Thiruvarur has many exportable products and resources. But the products lack international exposure and marketing. The marine fish from this region will have international demand, but it is untapped and export promotion and exposure of the product is required. Similarly for coir and coir products, there is a potential demand in the international market which is still untapped by the farmers.

Technology

Though Thiruvarur has export potential agro products, there is no sufficient value addition, with very minimal attention given to branding, packaging, standardization, etc. For value addition of agro products there is a need for more dissemination of technical know-how from research centers to field. Indian Institute of Food Processing Technology, Thanjavurhas state-of-the-art technologies in the field of value addition, standardization, etc. There is need to transfer these technologies from the labs to farmers and agro producers.

Skill Deficiency

There is huge need to cultivate and enhance the international entrepreneurial skill among the businessmen and the farmers in the district, apart from helping them explore international markets. In addition, in order to sustain in the agro products exports, exportersneeds to be well informed about Sanitary and phyto sanitary (SPS) measures of various countries and the Codex Alimentarius international food standards, guidelines and codes of practices, etc which are essential for them to be efficient international players. Thiruvarur have potential of coir processing. But there is lack of skill development in this potential sector.

Ancillary Infrastructure

The district has very minimal ancillary infrastructure for exports like testing facilities, certification labs, etc., that are essential in establishing the superior quality of the marine and agro products produced in this district and are mandatory requirements for exports.

Hazard Profile of Tiruvarur District

Heavy rains during the months of October, November and December inundates low-lying areas, Coastal areas and the areas nearby major irrigation sources. Cyclones are also part of the North East monsoon. Due to floods, sudden outbreak of several water borne diseases was also experienced in the past.

Tiruvarur District consist of eight taluksie., Tiuvarur, Nannilam, Kodavasal, Valangaiman, Needamangalam, Mannargudi, Koothanallur and Thiruthuraipoondi. Among these, Thiruthuraipoondi is the only coastal taluk that has been protected by the Lagoon and Mangrove forest from heavy wind, Cyclone and Tsunami. However, most of the rivers flowing through this taluk drain in the lagoon. Since the gradient is not high, instead of draining, water spreads across the land masses inundating most of the places. Along with this, most of the surplus as well as runoff water from Pudukottai, Thanjavur and Thiruchirapalli flows into Tiruvarur district, making the situation difficult during incandescent rains.

The other challenges for growth of exports in the district can be summarized as follows:

  • Merger availability of dry land to establish MSME’s.
  • Non availability of Industrial estate and other infrastructure in the district.
  • Inadequate Availability of power & and its fluctuations
  • Financial institution Reluctance to finance MSMEs.
  • Poor Road and Railway connectivity for movement of goods &maintenance of the existing Highways to be improved.

District Export Action Plan

The action plan is outlined for the district of Thiruvarur, as below to harness and enhance the export potential in the district and to facilitate the promotion & growth of exports from the district in a concerted manner.

  • There is a need to create a database of exporters from the district. As a part of the District Export Action Plan, the General Manager of DIC along with the officials of the APEDA, Coir board, MPEDAwill cull out comprehensive data base of exporters for publication and administrative use. The DIC will be the Custodian of this data base. It will be electronically maintained and will be dynamic, with constant updating of new IECs. The Exporter data can also be a public document and if the DEPC desires, can be published in various portals for more visibility for the exporters and their products.
  • In order to address the numerous approvals and licenses required for manufacturing or setting up an export business, single window clearance mechanism already in place as part of ease of doing business shall be utilized.
  • In this digital era, creation of digital facilitation is essential. The action plan envisages that the DEPC will create an online portal, which will be a give a one stop access to all the links for all the digital requirements and compliances for any exporter. The Portal can also develop over the time to monitor the district’s DEPC projects and disseminate exporter data. NIC of the district can be tasked with this project to be implemented in a year and report to the DEPC.
  • For Value addition of Agro Food Products necessary training programs to be imparted for transfer of technologies from labs to the field by utilizing the existing skill development initiatives of Government in coordination with IIFPT, Thanjavur
  • APEDA can impart training to Farmers and Agro Exporters regarding Sanitary and phyto-sanitary (SPS) measures, The
    Codex Alimentarius international       food standards, guidelines     and        codes of     practices,   and   other regulations to boost exports from Thiruvarur.
  • Skill enhancement on coir production and value addition can be done by impart training in coordination with Coir Board, Thanjavur
  • The capacity of the existing Road connectivity to be Improvedfor seamless movement of goods like Widening of roads to Karaikal Port. A group has to be constituted to study and steer the road infrastructure initiatives in the district.
  • Need to develop necessary infrastructure at Nagapattinam Port including dredging of channel will enhance the port’s capabilities and support the proposed initiatives on fostering long –term trade relations.
  • New potential products to be identified for value addition and exports in coordination with District Administration.

Concluding note

The above District Export Action Plan for the district of Thiruvarur is not conclusive. The DEPC has the rights and powers to amend the District Export Action Plan according to the needs of the times and the prevailing contexts. The main focus will be to facilitate the growth of the identified sectors in such a way that the district of Thiruvarur moves towards SELF-RELIANCE and transforms itself into a HUB FOR EXPORTS from India