Table of Contents
Relevance: GS Paper III: Agriculture, food processing, exports and farmers’ income
For Prelims:
- Coconut Development Board, milling copra, ball copra, NAFED, NCCF, PICCS, Neera, TMOC
For Mains:
- Multi-tier farming, plantation rejuvenation, value addition, farmer collectivisation, export diversification
Why in News?
India ranks first globally in coconut production. In 2025–26:
- Coconut-product exports reached ₹7,038.35 crore, registering a 62% annual increase.
- Around 2,175 hectares were added under cultivation.
- Nearly 1,672 hectares were covered under rejuvenation.
The Union Budget 2026–27 also announced the Coconut Promotion Scheme to address diseases, aging plantations, low productivity and limited processing.
Importance of Coconut
- Coconut is known as Kalpavriksha, the “Tree of Life” or the “Tree of a Thousand Uses.” It provides food, oil, beverages, medicine, fibre, coir, timber, fuel, handicraft material and industrial raw materials.
- Coconut cultivation in India has a history of nearly 3,000 years. The sector supports around 30 million people, including approximately 10 million farmers, most of whom are small and marginal cultivators.
India in the Global Coconut Economy
| Indicator | India’s Position |
| Global rank in production | 1st |
| Global rank in cultivation area | 3rd |
| Share in global production | 31.24% |
| Share in global area | 17.90% |
| Production in 2024–25 | 20,301.22 million nuts |
| Cultivated area | 2.19 million hectares |
| Average productivity | 9,249 nuts per hectare |
Leading States
- Kerala: Largest cultivated area—about 7.54 lakh hectares
- Tamil Nadu: Highest production
- Andhra Pradesh: Highest productivity
- West Bengal and Tamil Nadu follow Andhra Pradesh in productivity.
Kerala produces approximately 5,149.87 million nuts. Cultivation is also expanding into Odisha, Gujarat, Assam, Arunachal Pradesh and Chhattisgarh.
Coconut-Based Multi-Tier Farming
Multi-tier farming involves growing compatible fruits, vegetables, spices and plantation crops between coconut palms.
Benefits
- Provides income before palms begin yielding
- Improves land, water and sunlight utilisation
- Creates year-round employment
- Diversifies farmers’ income
- Reduces dependence on a single crop
Bastar Example
A farmer in Chhattisgarh planted around 2,500 coconut palms and integrated them with pineapple, dragon fruit, mango, citrus, banana, coffee and vegetables. The farm generated about ₹5–6 lakh annually from coconut and nearly ₹10 lakh from intercrops, showing the potential of coconut-based diversified farming.
Growth of Coconut Exports
- India’s coconut exports increased from only ₹25.3 crore in 2001–02 to ₹7,038.35 crore in 2025–26.
- During 2021–22 to 2025–26, export turnover rose from ₹3,236.83 crore to ₹7,038.35 crore.
Major Export Products
- Activated carbon
- Coconut oil and virgin coconut oil
- Coconut milk and water
- Fresh, frozen and grated coconut
- Copra
- Desiccated coconut
- Activated carbon accounts for the largest export volume.
- The market has expanded from the Middle East to Europe, the Americas and Australia. Major partners include the USA, UAE, Sri Lanka, Germany, Russia, Turkey, Belgium, the UK and the Netherlands.
Coconut Development Board
- The Coconut Development Board (CDB) was established on 12 January 1981. It functions under the Ministry of Agriculture and Farmers Welfare and is headquartered in Kochi.
- It works across 22 States and Union Territories and received ₹147.21 crore in 2025–26.
Major Functions
- Production of quality seedlings
- Expansion of coconut cultivation
- Productivity improvement
- Pest and disease management
- Replanting and rejuvenation
- Processing and product diversification
- Skill and enterprise development
- Market and export promotion
- Recommendations on MSP and trade policies
The CDB is the Export Promotion Council for coconut products other than husk and fibre products.
Minimum Support Price for Copra
Copra is the dried kernel of a mature coconut.
| Milling Copra | Ball Copra |
| Kernel is removed and dried | Whole coconut is dried with kernel inside the shell |
| Mainly used for oil extraction | Used as edible dry fruit and for religious purposes |
NAFED and NCCF are the Central Nodal Agencies for copra procurement under the Price Support Scheme.
MSP for the 2026 Season
| Type | MSP | Increase over 2025 |
| Milling copra | ₹12,027 per quintal | ₹445 |
| Ball copra | ₹12,500 per quintal | ₹400 |
Coconut
About Coconut
Global Distribution Coconut is widely grown in:
Distribution in India Major coconut-growing States include:
Uses Coconut is used as:
Climatic Conditions
|
Major Government Initiatives
1. Quality Planting Material
The programme supports seed farms, seed gardens, nurseries, accreditation and certification.
Demonstration-cum-Seed Production Farms
- ₹30 lakh for establishing a farm during the first two years
- Up to ₹1 lakh per hectare annually from the third year until yield stabilisation
- 2.41 lakh seedlings produced through 11 farms in 2025–26
Other achievements included:
- Twelve new nurseries with a capacity of 1.06 lakh seedlings
- Maintenance support to six nurseries
- ₹239.35 lakh for public-sector nurseries
- Production of 11.97 lakh planting materials, sufficient for about 6,850–7,500 hectares
2. Expansion of Cultivated Area
Assistance of ₹56,000 per hectare is released in two annual instalments.
- Maximum: Two hectares per beneficiary
- Minimum: 0.08 hectare or 20 cents
In 2024–25, 2,979 hectares were added, benefiting 13,068 farmers. In 2025–26, ₹632.77 lakh supported new plantations in Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Odisha, West Bengal, Gujarat, Assam and Arunachal Pradesh.
3. Productivity Improvement Through Coconut-Based Cropping System
PICCS is implemented through State departments and the CDB on a cluster basis.
Assistance
- 100% of eligible cost
- ₹42,000 per hectare
- Maximum two hectares per beneficiary
- Released in two annual instalments
Performance in 2025–26
- 18,800 hectares covered
- 48,696 farmers benefited
- 266 clusters formed
- ₹3,943 lakh provided
- State convergence covered another 5,935 hectares
The broader programme also supports farm ponds, community tanks, organic farming, mechanisation and post-harvest equipment.
4. Replanting and Rejuvenation
The programme replaces disease-affected, old and unproductive palms and improves the remaining gardens.
- Assistance: Up to ₹54,000 per hectare over two years
- Coverage during the previous five years: 25,517 hectares
- Expenditure: ₹130.46 crore
Technology, Processing and Marketing
Technology Mission on Coconut
The Technology Mission on Coconut supports:
- Pest and disease-management technologies
- Processing technologies
- Product diversification
- Commercial adoption of innovations
The CDB also provides quality testing, incubation, training and consultancy services.
Market Development
Up to 2025–26, the Board registered 8,299 exporters, increasing to around 8,700 by 31 July 2026.
During the previous five years, it facilitated:
- 72 entrepreneurs in 20 domestic trade fairs
- 224 exporters in international trade fairs
- 392 domestic buyer-seller meetings for 215 entrepreneurs
- Brand promotion for nine units
- Establishment of 15 retail kiosks
Procurement and primary processing centres help FPOs and cooperatives aggregate produce, reduce intermediaries and process milling copra, ball copra and tender coconuts.
Skill Development and Enterprise Creation
Friends of Coconut Tree
The programme trains unemployed youth in mechanical palm climbing, plant protection and entrepreneurship. It trained 378 climbers in 2024–25.
Cocomitra
It organises trained climbers into registered units of 6–10 members and provides climbing devices, tools and mobility support.
Kera Kaushal Kendra
It creates registered 15-member handicraft groups producing items from coconut shell, wood and fibre. Each approved centre is eligible for ₹2.67 lakh from 2026–27.
Neera Technician Training
Neera is the fresh, unfermented and zero-alcohol sap collected from coconut inflorescences. seven-day programme trains workers in scientific tapping and processing through licensed FPOs.
Kera Suraksha Insurance Scheme
It provides accident insurance to coconut climbers, Neera technicians, hybridisation workers and coconut labourers.
Coconut Promotion Scheme
Announced in the Union Budget 2026–27, the scheme addresses root wilt disease, pest outbreaks and aging plantations.
Key Components
- Large-scale production of quality seedlings
- Expansion into suitable areas
- Phased replanting and rejuvenation
- Holistic crop-health management
- Integrated processing units
- Value addition and export promotion
The scheme is part of a broader ₹350 crore allocation for high-value agriculture, including coconut, cashew and cocoa. It aims to improve farmers’ incomes and position India as a global leader in coconut and coir exports by the 2030s.
Significance
- Secures the livelihoods of small and marginal farmers.
- Generates employment in harvesting, processing and handicrafts.
- Promotes crop and income diversification.
- Expands exports of high-value products.
- Encourages rural enterprises and FPOs.
- Enables complete use of shells, husks, wood and fibre.
Challenges
- Aging and unproductive plantations
- Root wilt and pest outbreaks
- Droughts, cyclones and water stress
- Small and fragmented holdings
- Shortage of trained climbers
- Limited farm-level processing
- Price fluctuations
- Weak market access
- Strict export quality requirements
Way Forward
- Replace senile palms with high-yielding, climate-resilient varieties.
- Strengthen pest surveillance and crop-health services.
- Expand multi-tier farming and micro-irrigation.
- Develop processing clusters near production centres.
- Increase mechanical harvesting services.
- Strengthen FPO-led aggregation and marketing.
- Improve testing, traceability, packaging and certification.
- Promote complete utilisation of coconut by-products.
Conclusion
India’s coconut sector is moving from traditional cultivation to a diversified and export-oriented value chain. Higher productivity, plantation rejuvenation, value addition and organised marketing will be essential to make coconut farming more resilient, remunerative and globally competitive.
CARE MCQ
1. Consider the following statements regarding India’s coconut sector:
- India ranks first in global coconut production.
- Tamil Nadu has the largest area under coconut cultivation in India.
- Andhra Pradesh records the highest coconut productivity in India.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3
Answer: (b) 1 and 3 only
Explanation: India ranks first globally in coconut production. Kerala, not Tamil Nadu, has the largest area under cultivation. Tamil Nadu leads in total production, while Andhra Pradesh records the highest productivity.
FAQs
1. Why is coconut called Kalpavriksha?
Almost every part of the tree provides food, oil, fibre, fuel, timber or industrial raw material.
2. What is the Coconut Development Board?
It is a statutory body established in 1981 under the Ministry of Agriculture and Farmers Welfare to develop India’s coconut sector.
3. What are the main types of copra?
- Milling copra: Mainly used for oil extraction.
- Ball copra: Used as edible dry fruit and for religious purposes.
4. What is multi-tier coconut farming?
It involves growing fruits, vegetables and spices between coconut palms to increase land productivity and farm income.
5. What is PICCS?
It is a cluster-based programme that promotes productivity improvement through coconut-based cropping systems.
6. What is Neera?
Neera is the fresh, unfermented and zero-alcohol sap collected from coconut inflorescences.
