Coir Board with the approval of Ministry had been operating a Rebate Scheme for liquidating the stocks lying with the Manufactures/Producers and to develop the Internal Market of Coir products.  The Rebate Scheme was in operation from 1986-87 to 1999-2000. Under the scheme, the buyers of Coir products were entitled for a Rebate of 20% shared equally between the States and Central Government.  The beneficiaries of the Scheme were Public Sector Undertakings, State Governments, Coir Co-operative Societies, Government owned institutions, Coir Board SR &SDS and Hindustan Coir. The Rebate was provided only for 90 days in an year. It resulted in accumulation of coir yarn and coir products with the Co-operatives and Public Sector Undertakings awaiting major sales during Rebate period. Consequently the regular cash flow to the Co-operatives and Public Sector Undertakings was badly affected. Another important limitation under the Scheme was that the Rebate was sanctioned on an yearly basis, unless notified every year afresh there was an element of certainty about its continuance which resulted in the beneficiary organizations finding it difficult to plan their production, investment and marketing programmes in advance. As the benefits of rebate goes to the customer, the beneficiary organization do not get any direct benefit except a reimbursement of their production cost. Meanwhile, it was found necessary to have a more vibrant scheme by which the scheme can be more effectively in the Coir Sector round the year for the better development of internal marketing of  coir products and accordingly the then existing Rebate Scheme was discontinued and replaced by the Market Development Assistance ((MDA) Scheme w.e.f. 2000-01 onwards.  The Market Development Assistance is linked with the sales performance of concerned beneficiaries and aim at providing incentive for better performance. The following are the main objectives of the M D A Scheme:

To provide financial support on a continuing basis rounded  the year to the Co-operatives and Public Sector Enterprises who undertake market development programme in Coir.

Setting up of Market Intelligence net work/ up-gradation of design facilities like installation of computer, Aided Design Centre, engagement of qualified designers, introduction of e-commerce facilities, computerization of Showrooms etc.

              Inorder to continue the MDA Scheme during the XIth Five Year Plan period ie, from 2007-08 to 2011-‘12 the Board had already forwarded proposal to Government of India for getting its SFC/EFC approval from the Ministry. As a result, the Ministry has conveyed its approval vide their lr. No: 5(8)/ 2008/Coir/675 dtd 19-11-2008 to continue the Scheme in accordance with the existing guidelines during the XIth Five Year Plan period. Accordingly, a copy of MDA guidelines is enclosed for kind reference.