Coconut Promotion Scheme
Coconut Promotion Scheme
Context
In the Union Budget 2026–27, the Government of India highlighted India’s position as the largest global producer of coconuts, accounting for 30.37% of world production. To capitalize on this leadership, the Coconut Promotion Scheme is currently being formulated to enhance productivity and global competitiveness.
About the Coconut Promotion Scheme
What it is?
A Central Sector Initiative designed to boost coconut productivity, improve quality, and foster value addition across India's major coconut-growing belts.
Financial Outlay:
Announced as part of a broader ₹350 crore allocation in the 2026–27 Budget, specifically targeting high-value commercial crops including coconut, cashew, and cocoa.
Primary Objectives:
- To increase per-hectare production and overall yield.
- To improve farmers’ net income through better market linkages.
- To enhance India's brand equity in the global coconut product market.
Key Features of the Scheme
- Replantation & Rejuvenation: Focused efforts to replace old, senile, and low-yielding palms with high-yielding, modern varieties.
- Climate-Resilient Varieties: Promotion of cultivars that are disease-resistant (e.g., against Root Wilt) and adapted to changing climatic patterns.
- Modern Agronomic Practices: Integrated nutrient management and micro-irrigation techniques to optimize resource use.
- Value Addition & Export: Providing incentives for processing units (desiccated coconut, virgin coconut oil, neera) and supporting branding for international markets.
- Livelihood Support: Targeted interventions to support the 10 million farmers directly dependent on the crop.
Current Status: The scheme is currently under formulation. Specific State/UT-wise fund allocations and detailed operational guidelines are yet to be finalized by the Ministry of Agriculture and Farmers' Welfare.
India’s Coconut Production Profile
|
Parameter |
Data / Statistic |
|
Global Rank |
1st (Largest producer globally) |
|
Share in Global Production |
30.37% |
|
Area under Cultivation (India) |
2,165.20 thousand hectares |
|
Annual Production |
21,373.62 million nuts |
|
Average Productivity |
9,871 nuts per hectare |
|
Livelihood Dependence |
~30 million people (including ~10 million farmers) |
Challenges in the Coconut Sector
- Price Volatility: High fluctuations in the market price of copra and coconut oil affect farmer stability.
- Pest and Disease: Threats from the Rhinoceros beetle, Red Palm Weevil, and various leaf-eating caterpillars.
- Fragmented Holdings: Small and marginal landholdings make the adoption of large-scale mechanical harvesting difficult.
- Value Addition Gap: A significant portion of the harvest is still sold as raw nuts or low-value copra rather than processed high-value products.
Way Forward
- Strengthening the CDB: Empowering the Coconut Development Board (CDB) to act as a bridge between research institutions and farmers.
- Cooperatives and FPOs: Encouraging Farmer Producer Organizations (FPOs) to take up primary processing and collective bargaining.
- Diversification: Promoting intercropping (e.g., with cocoa or spices) to provide farmers with an additional layer of economic security.