India’s Coconut Sector, Production, Export, Initiatives, Challenges

India’s coconut sector is an important agricultural and rural livelihood sector, with India ranking first globally in coconut production. The sector is expanding from traditional cultivation towards higher productivity, plantation rejuvenation, value addition, processing and exports, supported by the Coconut Development Board and the Coconut Promotion Scheme under Union Budget 2026-27.

About India’s Coconut Sector

Coconut, regarded as the “Kalpavriksha” or tree of life, has been part of India’s culture and agrarian economy for nearly three thousand years. Its diverse uses in food, drink, medicine, fibre, timber and fuel have also supported the growth of a modern value-added coconut industry.

• Around 30 million people, including about 10 million farmers, depend on the coconut sector, with cultivation largely undertaken by small and marginal farmers.
• India ranks first globally in coconut production and third in area under cultivation, accounting for 31.24% of global production and 17.90% of global area, respectively.
• During 2024-25, India produced 20,301.22 million nuts from 2.19 million hectares, with average productivity of 9,249 nuts per hectare.

Major Coconut-Producing States

The distribution of coconut cultivation and productivity varies considerably across States.

• 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 the country in coconut production.
• Andhra Pradesh records the highest productivity, followed by West Bengal and Tamil Nadu.
• Coconut cultivation is also expanding into newer areas, with Bastar in Chhattisgarh emerging as an example of coconut-based multi-tier farming integrated with fruits, vegetables and other crops.

From Traditional Commodity to Export-Oriented Sector

India’s coconut industry has increasingly shifted from traditional products towards value-added products and diversified export markets.

• Exports increased from just ₹25.3 crore in 2001-02 to ₹7,038.35 crore (USD 794.70 million) in 2025-26. 
• The export basket has diversified into virgin coconut oil, coconut milk, coconut water and activated carbon, besides fresh, frozen and grated coconut. 
• India’s coconut products have expanded beyond the traditional Middle East market to Europe, the Americas and Australia.
• Major trading partners during the last five years include the United States of America, United Arab Emirates, Sri Lanka, Germany, Russia, Turkey, Belgium, United Kingdom and the Netherlands.

Government Initiatives for the India’s Coconut Sector

The Government is strengthening the coconut sector across the entire value chain, from quality planting material and cultivation to productivity improvement, rejuvenation, processing, exports, skill development and farmer incomes.

Coconut Development Board

The Coconut Development Board (CDB) is the main institutional body for the integrated development of coconut cultivation and industry in India.

• Established on 12 January 1981, the CDB functions under the Ministry of Agriculture and Farmers Welfare and is headquartered in Kochi.
• It works across 22 States/Union Territories with focus on quality planting material, expansion of cultivation, productivity improvement, pest and disease management, product diversification and by-product utilisation.
• During 2025-26, ₹147.21 crore was released for activities implemented under the Board.

Minimum Support Price for Copra

The Government provides price support for copra to improve returns to coconut growers.

• Copra, the dried kernel of coconut, is one of the 22 crops covered under the Minimum Support Price (MSP) regime.
• For the 2026 season, MSP has been fixed at ₹12,027 per quintal for milling copra and ₹12,500 per quintal for ball copra.
• The National Agricultural Cooperative Marketing Federation of India Limited (NAFED) and National Cooperative Consumers’ Federation of India Limited (NCCF) are the Central Nodal Agencies for copra procurement, along with State-level agencies.

Production of Quality Planting Material

The Government is strengthening the foundation of the coconut value chain by increasing the availability of quality seedlings.

• Demonstration-cum-Seed Production Farms (DSPFs) demonstrate scientific cultivation practices and produce quality coconut seedlings.
• During 2025-26, 2.41 lakh quality seedlings were produced through 11 DSPFs.
• Support is also provided through Nucleus Coconut Seed Gardens, Small Coconut Nurseries, nursery accreditation and public-sector nursery assistance

Expansion of Coconut Cultivation

The Government provides financial assistance and technical support to bring suitable new areas under coconut cultivation.

• Financial assistance of ₹56,000 per hectare is provided for planting coconut seedlings in new areas, released in two equal annual installments.
• During 2024-25, 2,979 hectares were brought under new coconut cultivation, benefiting 13,068 farmers.
• During 2025-26, about 2,175 hectares of new area were brought under cultivation across States including Keralam, Tamil Nadu, Karnataka, Andhra Pradesh, Odisha, West Bengal, Gujarat, Assam and Arunachal Pradesh.

Productivity Improvement Through Coconut-Based Cropping System

The Productivity Improvement Through Coconut-Based Cropping System (PICCS) promotes integrated farming by combining coconut with suitable intercrops, helping farmers make better use of land and generate income from multiple crops. The approach is illustrated by Bastar in Chhattisgarh, where farmers have adopted coconut-based multi-tier farming with fruits, vegetables and other crops.

• Under PICCS, farmers receive 100% subsidy of the cost, amounting to ₹42,000 per hectare, subject to a maximum of 2 hectares per beneficiary.
• During 2025-26, the scheme covered 18,800 hectares, benefiting 48,696 farmers organised into 266 clusters.
• An additional 5,935 hectares were covered through convergence with State Governments across four States/Union Territories.
• The programme also supports water-resource creation, organic farming and farm mechanisation to improve the productivity and sustainability of coconut-based farming.

Replanting and Rejuvenation of Coconut Gardens

The programme addresses ageing, diseased and unproductive coconut plantations. It supports the removal of diseased and senile palms, replanting with quality seedlings and rejuvenation of existing palms. Assistance of up to ₹54,000 per hectare is provided over two years. During 2025-26, 1,672 hectares were covered under replanting and rejuvenation.

Coconut Promotion Scheme

The Coconut Promotion Scheme was announced in the Union Budget 2026-27 to address major productivity and sustainability concerns in the sector.

• It focuses on large-scale production of quality seedlings, expansion into potential areas, phased replanting and rejuvenation, holistic crop-health management and integrated coconut processing units.
• The scheme is part of a broader ₹350 crore allocation for high-value agriculture, covering coconut, cashew and cocoa.
• It seeks to improve farmer incomes, value addition, sustainability and export competitiveness, with the objective of strengthening India’s position in global coconut and coir exports.

Strengthening Value Addition and Markets

The Government is also seeking to increase the value captured from coconut beyond primary production.

• The CDB supports processing, technology demonstration, quality testing, product diversification, certification, branding and export promotion.
• It functions as the Export Promotion Council for coconut products other than those made from husk and fibre.
• Coconut-based product exports increased from ₹3,236.83 crore in 2021-22 to ₹7,038.35 crore in 2025-26.
• The Board promotes trade fairs, buyer-seller meets, procurement centres and primary processing centres to improve market access and farmer bargaining power.

Skill Development and Enterprise Creation

Skill development programmes aim to create employment and strengthen the human resources required across the coconut value chain.

• The Friends of Coconut Tree (FoCT) programme trains unemployed youth in mechanical palm climbing, plant protection, entrepreneurship and communication skills; 378 climbers were trained during 2024-25.
• Cocomitra, introduced in 2025, organises trained climbers into registered units equipped with modern climbing and plant-protection equipment.
• Kera Kaushal Kendra promotes organised handicraft production using coconut shell, wood and fibre, with each approved centre eligible for ₹2.67 lakh assistance from 2026-27.
• The Neera Tapping and Processing Technician Training Programme develops skilled technicians for scientific tapping and processing of Neera.
• The Kera Suraksha Insurance Scheme provides accident insurance coverage to coconut tree climbers, Neera technicians, hybridisation workers and coconut labourers.

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India’s Coconut Sector Challenges

Despite strong production and export potential, the sector needs continued intervention to improve productivity, plantation health and farmer returns.

• Ageing and unproductive plantations require faster replanting and rejuvenation.
• Pest outbreaks and root wilt disease continue to threaten plantation productivity.
• Small and marginal holdings make mechanisation, aggregation and efficient marketing difficult.
• Inter-State productivity differences indicate scope for wider adoption of scientific cultivation and improved planting material.
• Greater value addition is needed to move further from raw and traditional products towards higher-value processed products.
• Skill and enterprise development needs wider coverage to match the large population dependent on the sector.

Way Forward

India can consolidate its position in the global coconut economy by combining productivity improvement with value addition and stronger farmer participation.

• Accelerate replanting, rejuvenation and disease management in ageing coconut plantations.
• Expand access to quality seedlings, irrigation, mechanisation and scientific cultivation practices.
• Strengthen Farmer Producer Organisations (FPOs) and processing centres to improve aggregation and bargaining power.
• Promote value-added products and integrated processing to raise farmer and enterprise incomes.
• Expand international markets, quality certification and branding to improve export competitiveness.
• Scale up skill development and coconut-based rural enterprises for employment and diversified livelihoods.