India, Aug. 18 -- The Government of India has issued a release:
India's coconut sector supports rural livelihoods, agricultural growth, and cultural traditions. Nearly 30 million people, including around 10 million farmers, depend on the sector. India ranks first in global coconut production, with Keralam leading in area, Tamil Nadu in production, and Andhra Pradesh in productivity. India's export basket has expanded from traditional products to value-added products like virgin coconut oil, coconut milk, and activated carbon. The Government, primarily through the Coconut Development Board, implements a range of schemes to strengthen the coconut ecosystem. During 2025-26, about 2,175 hectares were added under cultivation, while 1,672 hectares were covered under rejuvenation. The Union Budget 2026-27 further introduced the Coconut Promotion Scheme to strengthen sustainability, exports, and farmer incomes. With continued policy support, India's coconut sector is steadily advancing across production, value addition, exports, and livelihoods.
In the Bastar Plateau of Chhattisgarh, farmers traditionally depended on paddy, millets, maize, and minor floret produce. Through the efforts of the Coconut Development Board's DSP Farm, Kondagaon, coconut cultivation gradually emerged as a promising livelihood option. Farmers were trained to utilize the vacant spaces between young coconut palms with suitable intercrops. The practice provided income until coconut production commenced.
Coconut-Based Multi-Tier Farming in Chhattisgarh
Production of Quality Planting Material
Demonstration Cum Seed Production Farm (DSP)
Other schemes supporting the production of quality planting material include:
Expansion of the Area Under the Coconut
During 2024-25, Rs.209.24 lakh was utilized for bringing an additional area of 2,979 hectares under new coconut cultivation. The initiative benefited 13,068 farmers across various states in the country.
Comprehensive Programme for Sustainable Productivity Improvement in Existing Coconut Holdings
During 2025-26, the scheme covered 18,800 hectares across multiple States. It benefited 48,696 farmers organized into 266 clusters, with a financial outlay of Rs.3,943 lakh. In addition, State Government convergence covered another 5,935 hectares in four States/Union Territories with financial assistance of Rs.1,246 lakh. These included Tamil Nadu, Andhra Pradesh, Keralam, Assam, Goa, and Puducherry.
Replanting and Rejuvenation of Coconut Gardens
Over the last five years, the scheme has covered an area of 25,517 hectares at a cost of Rs.130.46 crore. During 2025-26, 1,672 hectares were covered under the scheme for rejuvenation. Activities included the removal of diseased palms, the replanting of new seedlings, and the rejuvenation of existing plantations.
During 2025-26, major emphasis was placed on expanding the area under coconut cultivation. About 2,175 hectares of new area were brought under cultivation across several states. These included Keralam, Tamil Nadu, Karnataka, Andhra Pradesh, Odisha, West Bengal, Gujarat, Assam, and Arunachal Pradesh. Financial assistance of Rs.632.77 lakh was provided for the establishment and maintenance of plantations, contributing to the enhancement of long-term production potential.
Keralam accounted for a significant share under PICCS, with over 8,089 hectares covered, benefiting 33,250 farmers during 2025-26.
Among them, Shri Eshansh Singh Rathore, a 36-year-old MBA graduate from Bakawand block, became a leading example. Coming from a farming family and having worked in the corporate sector, he adopted coconut cultivation systematically after receiving technical guidance from the Board. He established 2,500 coconut palms, mostly dwarf varieties, of which about 500 had started yielding.
During the current year, the scheme is being implemented across the country over an area of 22,430 hectares, covering major coconut-growing states.
Shri Rathore adopted a multitier cropping system that integrates high-value fruits and vegetables. Under his coconut plantation, he cultivated 4,000 pineapple plants, 800 dragon fruit plants, 1,000 mango trees, 600 citrus trees, along with banana, guava, papaya, litchi, coffee, strawberry, and seasonal vegetables. This diversified model enhanced the productivity of his land and ensured continuous income. His farm generated Rs.5-6 lakh annually from coconut cultivation. Intercrops added around Rs.10 lakh, making coconut farming highly profitable. His success encouraged many farmers in Bastar to view his coconut-based system as a sustainable, replicable model.
Coconut: A Livelihood and Cultural Asset
Revered as the "Kalpavriksha," the tree providing all necessities of life, the coconut is rooted in India's heritage, culture, and agrarian economy. Celebrated across civilizations as a tree of a thousand uses, the coconut's enduring symbolism is rooted in its remarkable versatility. It provides food, drink, medicine, fibre, timber, fuel, and a diverse range of raw materials. These resources sustain households, traditional practices, and a growing ecosystem of value-added industries.
In India, coconut cultivation has a well-documented history spanning nearly three millennia and remains a critical driver of rural employment and economic resilience. About 30 million people, including 10 million farmers, depend on the coconut sector, making it vital to rural livelihoods. Predominantly cultivated by small and marginal farmers, coconut aligns closely with inclusive growth and the strengthening of farm-based economies. One such example of its growing significance can be seen in Chhattisgarh, where farmers have begun adopting coconut cultivation as a viable livelihood option.
India in the Global Coconut Economy
India holds a prominent place in the global coconut economy. The country ranks first in production and third in cultivation area, accounting for 31.24 percent and 17.90 percent of global totals, respectively. According to the DA&FW statistics, India produced about 20,301.22 million nuts of coconut during 2024-25 from 2.19 million hectares. Average productivity stood at 9,249 nuts per hectare.
Within the country, Keralam has the largest area under coconut cultivation, covering nearly 7.54 lakh hectares and producing about 5,149.87 million nuts. Tamil Nadu leads coconut production, while Andhra Pradesh records the highest productivity, followed by West Bengal and Tamil Nadu.
Beyond primary production, the coconut sector has emerged as an important contributor to agricultural exports, supporting India's export ambitions. The Government aims to achieve USD 2 trillion in exports by 2030 and USD 21 trillion by 2047.
Supporting these export ambitions, India's coconut exports have recorded sustained growth in recent years. Coconut product exports reached Rs.7,038.35 crore (USD 794.70 million) in 2025-26. This marked a 62 percent increase over Rs.4,349.03 crore recorded in the previous year. This underscores the growing global demand for coconut products from India. The growth also highlights the significant progress made since 2001-02, when exports were only Rs.25.3 crore. During that period, exports were largely restricted to traditional products such as coconut shell charcoal, coconut oil, coconut, desiccated coconut, etc.
Over time, India's coconut export basket has evolved from traditional commodities to a diversified range of value-added products. The sector now caters to global demand for virgin coconut oil, coconut milk, and coconut water. It also supplies other application-oriented products, strengthening India's competitiveness in international markets. Market outreach has expanded beyond the Middle East, once the primary destination. Exports now reach markets across Europe, the Americas, and Australia.
Over the past five years, the USA, UAE, Sri Lanka, Germany, Russia, Turkey, Belgium, UK, and Netherlands have emerged as major trading partners. Key export products include activated carbon, coconut oil, fresh/frozen/grated coconut, copra, and desiccated coconut. Among these, activated carbon has consistently dominated export volumes.
Institutional Backbone: Role of Coconut Development Board
The Coconut Development Board (CDB), established on 12 January 1981, functions under the Ministry of Agriculture and Farmers Welfare. It oversees the integrated development of coconut cultivation and industry in India. Headquartered in Kochi, the board has been at the forefront of uplifting and transforming the sector across 22 States/UTs. Its key thrust areas include:
During 2025-26, Rs.147.21 crore have been released for the implementation of activities under CDB.
Government Support Measures for the Coconut Sector
The Government has adopted a multi-pronged policy approach for the coconut sector. The approach integrates minimum support price for copra, targeted development schemes, and focused initiatives for skill development and enterprise creation across the value chain.
MSP for Copra 2025-26: Ensuring Remunerative Returns
Copra, the dried kernel of coconut, is among the 22 mandated agricultural crops covered under the Minimum Support Price regime. India primarily produces two types of copra: milling copra and ball copra. Milling copra is primarily used for oil extraction and involves drying the coconut kernel after it is removed from the shell. Ball (edible) copra is consumed as a dry fruit and for religious purposes. It is prepared by drying whole mature coconuts until the kernel hardens inside the shell.
The National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) and the National Cooperative Consumers' Federation (NCCF) are the Central Nodal Agencies for copra procurement. In addition, State-level agencies are suitably engaged to support procurement operations.
For the 2026 season, the Union Cabinet has approved an enhanced MSP for copra to ensure remunerative prices for coconut growers. The MSP for milling copra is fixed at Rs.12,027 per quintal, while ball copra is fixed at Rs.12,500 per quintal. This marks a rise of Rs.445 per quintal for milling copra and Rs.400 per quintal for ball copra over 2025 MSP.
A higher MSP ensures more remunerative returns for coconut growers. It incentivizes farmers to increase copra production to meet the rising domestic and global demand for coconut products.
Key Initiatives for Coconut Cultivation and Productivity
The Government, primarily through the Coconut Development Board, implements a range of schemes to strengthen the coconut ecosystem. These improve access to quality planting material, expand cultivation, enhance productivity, promote technology adoption, and support market development.
The scheme strengthens the coconut value chain at the foundation stage by ensuring the availability of quality planting material. Key interventions under the scheme include establishing seed production farms, seed gardens, and nurseries, as well as quality certification systems.
Under the scheme, the Coconut Development Board (CDB) undertakes the establishment of new Demonstration cum Seed Production Farms (DSPFs) in various States. The DSPFs demonstrate scientific coconut cultivation practices and commercially produce quality coconut planting materials.
The financial assistance under the scheme is structured as follows:
During 2025-26, the Board produced 2.41 lakh quality coconut seedlings in 11 DSPFs established across the country.
The programme focuses on providing financial and incentive-based subsidies, along with technical support, for scientific coconut cultivation in suitable new areas. It also stabilizes existing coconut-growing areas, enhancing overall coconut production.
Under the scheme, financial assistance of Rs.56,000 per hectare is provided for planting coconut seedlings in new areas. The financial assistance is released in two equal annual instalments. The subsidy is available for a maximum area of 2 hectares and a minimum area of 0.08 hectares (20 cents) per beneficiary.
The scheme seeks to improve the production and productivity of coconut holdings through integrated farming practices, including coconut-based cropping systems.
Productivity Improvement Through Coconut-Based Cropping System (PICCS)is a major component under this comprehensive programme. It is implemented on a cluster basis through the Departments of Agriculture/Horticulture of the concerned State Governments, as well as directly by the Coconut Development Board. Subsidy is provided at 100 percent of the cost, amounting to Rs.42,000 per hectare, limited to 2 hectares per beneficiary. It is released in two equal annual instalments.
Other than PICCS, the scheme includes the following other components as well:
The scheme aims to enhance coconut production and productivity by replacing disease-affected, unproductive, old, and senile palms with quality seedlings. It also focuses on rejuvenating the remaining palms through an integrated package of practices. The scheme is implemented on a project-by-project basis, addressing state-specific problems. Assistance up to Rs.54,000 per hectare is provided over two years.
Complementary Initiatives Strengthening the Coconut Ecosystem
Apart from major interventions, the Coconut Development Board (CDB) implements several complementary schemes to strengthen the coconut value chain:
Coconut Promotion Scheme: A New Push for the Sector
In order to address pest outbreaks, root wilt disease, and aging plantations, the Coconut Promotion Scheme was announced in the Union Budget 2026-27. The scheme seeks to enhance coconut production and productivity through targeted interventions, which include:
The initiative forms part of a broader Rs.350 crore allocation for high-value agriculture, including cashew and cocoa sectors. Through these measures, the scheme aims to strengthen sustainability and resilience in the coconut sector. It also envisions positioning India as a global leader in coconut and coir exports by the 2030s, while improving incomes for coconut farmers.
Skill Development and Enterprise Creation Initiatives
The Coconut Development Board (CDB) implements flagship skill development programmes for the coconut sector. These programmes create a trained, self-reliant, and enterprise-ready workforce across harvesting, processing, and value addition.
For over a decade, the Board has been implementing the Friends of Coconut Tree (FoCT) programme. The programme trains unemployed youth in coconut palm climbing using mechanical climbing devices, plant protection, entrepreneurship, and communication skills. During 2024-2025, 378 palm climbers were trained under programmes conducted across various states of the country.
Additionally, the Coconut Handicraft Training programme equips unemployed youth with aesthetic skills to produce handicraft items using various parts of the coconut plant.
In 2025, CDB transitioned from stand-alone training programmes to organized enterprise development through new initiatives:
Cocomitra (Coconut Climbers Task Force): Organizes trained climbers into registered units of 6-10 members. These groups are equipped with modern climbing devices, plant protection tools, and mobility support to deliver timely services to farmers.
Kera Kaushal Kendra: Seeks to nurture a network of Coconut Handicraft Centres across India specializing in products made from coconut shell, wood, and fibre. The initiative establishes 15-member handicraft production groups registered as legal entities.
Each approved Kera Kaushal Kendra is eligible for financial assistance of Rs.2.67 lakh from 2026-27. The assistance is provided for creating common facilities such as tools and equipment, furniture and fixtures, storage shelves and racks, utilities, and contingencies. The initiative also supports marketing activities for handicraft products. The programme promotes coconut-based micro-enterprises, rural entrepreneurship, and sustainable livelihoods.
Neera Tapping and Processing Technician Training Programme: Neera, a nutritious zero-percent-alcohol health drink, is the unfermented juice tapped from coconut palm inflorescences. The programme provides structured 7-day field-based training to develop skilled technicians for safe and scientific Neera tapping and processing. The training is conducted through FPOs holding Neera licenses.
During 2025-26, the Board conducted 414 awareness training programmes. The programmes covered CDB schemes, scientific cultivation technology, and coconut value addition.
Coconut Sector at the Crossroads of Tradition and Global Growth
Revered for generations as the "Tree of Life," the coconut remains deeply woven into India's cultural and rural landscape. Over time, the sector has expanded far beyond traditional cultivation practices. Strong policy support, farmer collectivization, and skill development initiatives have strengthened the coconut value chain.
Efforts to improve planting material, expand cultivation, and rejuvenate aging plantations are creating new opportunities for farmers. At the same time, rising demand for value-added coconut products is expanding India's presence in global markets. With sustained institutional support, India's coconut sector has evolved from a traditional cultural symbol to a globally prominent sector.
References:
Ministry of Agriculture & Farmers Welfare
https://coconutboard.gov.in/docs/icj/icj-2023-02.pdf
https://coconutboard.gov.in/docs/icj/icj-2025-11.pdf
https://coconutboard.gov.in/docs/icj/icj-2026-03.pdf
https://coconutboard.gov.in/docs/farming-success-story.pdf
https://coconutboard.gov.in/docs/icj/icj-2026-04.pdf
https://coconutboard.gov.in/docs/operational-guidelines.pdf
https://coconutboard.gov.in/About.aspx
https://coconutboard.gov.in/docs/FPO-concept-note.pdf
https://coconutboard.gov.in/ProducerSocieties.aspx
https://coconutboard.gov.in/docs/anreport2024-25english.pdf
https://www.pib.gov.in/PressReleasePage.aspx?PRID2203006®3&lang1
https://agriwelfare.gov.in/Documents/DAFW_AnnualReport_2025_26_En.pdf
https://sansad.in/getFile/loksabhaquestions/annex/185/AU2600_MjCQOQ.pdf?sourcepqals
https://sansad.in/getFile/annex/270/AS89_vpvBlL.pdf?sourcepqars
https://www.pib.gov.in/PressReleasePage.aspx?PRID2211783®3&lang2
https://sansad.in/getFile/loksabhaquestions/annex/187/AU4007_gp2V3z.pdf?sourcepqals
https://www.pib.gov.in/PressReleaseDetail.aspx?PRID2241416®3&lang1
https://www.pib.gov.in/PressReleseDetailm.aspx?PRID2236048®3&lang1
https://coconutboard.gov.in/docs/icj/icj-2024-01.pdf
https://sansad.in/getFile/annex/270/AS89_vpvBlL.pdf?sourcepqars
https://coconutboard.gov.in/docs/Handicraft-Training.pdf
https://coconutboard.gov.in/docs/icj/icj-2025-07.pdf
https://coconutboard.gov.in/docs/icj/icj-2026-02.pdf
Ministry of Finance
https://www.pib.gov.in/PressReleasePage.aspx?PRID2221410®3&lang2
PIB Backgrounders
https://www.pib.gov.in/PressReleasePage.aspx?PRID2253483®3&lang1
https://www.pib.gov.in/PressReleasePage.aspx?PRID2177219®3&lang2
Click here for the pdf file.
Disclaimer: Curated by HT Syndication.
