The research imperatives in composites containing natural fibres, such as sisal and sunhemp, and certain agro-wastes like rice husk, corn and peanut shell, are discussed. These materials are classified into two categories: (i) particulate, and (ii) fibrous types of fillers. This paper highlights the economics of using natural fibres and hybrid composites as compared to unfilled and glass fibre reinforced plastics. It is predicted that for an equivalent stiffness, a mica-natural fibre hybrid will cost less than half of a glass-fibre-reinforced polyester, with significant weight savings. Further, for equivalent strength, a natural fibre (500 MPa fibre strength) composite at 0. 5 fibre volume fraction (V//f) will be more cost effective than a 0. 2 V//f glass-reinforced plastic (GRP). High water absorption and poor interfacial bonding have been identified as the major bottlenecks in large scale use of these composites.