India’s Coconut Sector
India is focusing on strengthening the coconut sector through policy support, value addition and sustainable farming practices. Initiatives such as the Coconut Promotion Scheme announced in the Union Budget 2026–27 aim to address challenges including ageing plantations, pest attacks, diseases and low productivity while improving farmers’ income.
Known as the “Tree of Life”, coconut plays an important role in India’s agricultural economy, rural livelihoods, cultural traditions and export potential. The sector is gradually transforming from a traditional plantation activity into a diversified value-added industry.
India’s Position in the Global Coconut Economy
India has emerged as a leading player in global coconut production.
- India ranks first in coconut production and third in cultivation area globally.
- The country contributes around 31.24% of global coconut production and accounts for nearly 17.90% of global cultivation area.
- During 2024–25, India produced approximately 20,301 million coconut nuts from about 2.19 million hectares of cultivation area.
State-wise Contribution
- Keralam has the largest area under coconut cultivation.
- Tamil Nadu leads in total coconut production.
- Andhra Pradesh records the highest productivity, followed by West Bengal and Tamil Nadu.
Growing Importance of Coconut Exports
The coconut sector has become an important contributor to India’s agricultural exports.
India’s coconut product exports reached around ₹7,038 crore in 2025–26, registering significant growth compared to the previous year.
The export basket has also diversified beyond traditional products such as:
- Coconut oil.
- Copra.
- Desiccated coconut.
- Coconut shell charcoal.
New value-added products include:
- Virgin coconut oil.
- Coconut milk.
- Coconut water.
- Activated carbon.
Indian coconut products now reach markets in Europe, America, Australia and several Asian countries, including the USA, UAE, Germany, Russia, Belgium and the UK.
Government Support Measures for the Coconut Sector
Coconut Development Board (CDB)
The Coconut Development Board (CDB) was established on 12 January 1981 under the Ministry of Agriculture and Farmers Welfare.
Headquartered in Kochi, CDB works towards the integrated development of the coconut sector across India.
Its major functions include:
- Promoting coconut production and productivity.
- Providing quality planting material.
- Supporting processing and value addition.
- Developing domestic and export markets.
- Encouraging technology adoption.
Minimum Support Price (MSP) for Copra
Copra, the dried kernel of coconut, is included among the agricultural commodities covered under the MSP system.
The government provides MSP support to ensure remunerative prices for coconut farmers.
India produces two major types of copra:
Milling Copra
Used mainly for coconut oil extraction after drying the coconut kernel.
Ball Copra
Used as edible copra and for religious purposes, prepared by drying whole mature coconuts.
Procurement operations are supported by agencies such as:
- National Agricultural Cooperative Marketing Federation of India (NAFED).
- National Cooperative Consumers’ Federation (NCCF).
Major Schemes Supporting Coconut Development
Production of Quality Planting Material
The government promotes the availability of healthy coconut seedlings through:
- Seed gardens.
- Nurseries.
- Quality certification systems.
- Demonstration farms.
The Coconut Development Board establishes Demonstration cum Seed Production Farms (DSPFs) to promote scientific cultivation practices.
Expansion of Coconut Cultivation
The programme encourages cultivation in suitable regions through financial assistance and technical support.
Farmers receive assistance for:
- Establishing new plantations.
- Scientific cultivation practices.
- Expansion of coconut-growing areas.
During 2025–26, new coconut cultivation areas were developed across states including Keralam, Tamil Nadu, Karnataka, Andhra Pradesh, Odisha and Assam.
Improving Productivity Through Sustainable Practices
The Productivity Improvement Through Coconut-Based Cropping System (PICCS) promotes sustainable productivity enhancement.
It encourages:
- Integrated farming systems.
- Better irrigation facilities.
- Organic farming.
- Farm mechanisation.
- Scientific plantation management.
The initiative helps farmers improve productivity while reducing production risks.
Replanting and Rejuvenation of Coconut Gardens
The scheme focuses on replacing:
- Diseased coconut palms.
- Old and unproductive trees.
- Low-yielding plantations.
It supports:
- Removal of unhealthy palms.
- Plantation of improved varieties.
- Scientific rejuvenation practices.
This helps increase productivity and restore the health of coconut plantations.
Coconut Promotion Scheme
Announced in the Union Budget 2026–27, the Coconut Promotion Scheme aims to modernise the coconut ecosystem.
Major objectives include:
- Improving productivity.
- Promoting integrated crop health management.
- Supporting value-added processing units.
- Enhancing exports.
The scheme is part of broader efforts to strengthen high-value agriculture and improve farmer incomes.
Skill Development and Enterprise Promotion
The Coconut Development Board promotes entrepreneurship through:
- Skill training programmes.
- Coconut harvesting and processing training.
- Promotion of coconut-based micro-enterprises.
Initiatives such as Kera Kaushal Kendra encourage rural entrepreneurship and value addition.
During 2025–26, CDB conducted several awareness and training programmes on scientific cultivation and coconut processing.
Conclusion
India’s coconut sector represents the integration of agriculture, rural employment, cultural heritage and export opportunities.
With improved productivity measures, value addition, sustainable farming practices and government support, coconut cultivation is moving beyond traditional production towards a modern and competitive industry.
Strengthening the coconut ecosystem can enhance farmer incomes, promote rural entrepreneurship and contribute towards the vision of Viksit Bharat @2047.
Frequently Asked Questions About India’s Coconut
What is India’s position in global coconut production?
India ranks first in coconut production and third in coconut cultivation area globally, contributing significantly to the international coconut economy.
Which state leads India in coconut production?
Tamil Nadu leads India in total coconut production, while Keralam has the largest area under coconut cultivation.
What is the role of the Coconut Development Board?
The Coconut Development Board (CDB) promotes coconut production, productivity, quality planting material, processing, value addition, technology adoption and domestic and export markets.
What is the Coconut Promotion Scheme?
The Coconut Promotion Scheme, announced in the Union Budget 2026–27, aims to improve coconut productivity, support crop health management, promote value addition and enhance exports.
Why is coconut called the “Tree of Life”?
Coconut is called the “Tree of Life” because it provides food, oil, beverages, fibre and other products while supporting rural livelihoods, agriculture, cultural practices and export activities.
