India's Coconut Sector Performance and Policy Support
India's coconut sector has demonstrated significant growth, particularly in exports, which reached ₹7,038.35 crore (USD 794.70 million) in 2025-26, marking a 62% increase from the previous year's ₹4,349.03 crore. This represents substantial progress from 2001-02 when exports were merely ₹25.3 crore and consisted mainly of traditional products. The export basket has now diversified to include value-added products such as virgin coconut oil, coconut milk, coconut water, and activated carbon, with major markets expanding beyond the Middle East to include the USA, UAE, Sri Lanka, Germany, Russia, Turkey, Belgium, UK, and Netherlands.
Production and Global Position
India maintains its global leadership in coconut production, ranking first in production with 31.24% of global output and third in cultivation area with 17.90% share. During 2024-25, India produced 20,301.22 million nuts from 2.19 million hectares, achieving an average productivity of 9,249 nuts per hectare. Regional distribution shows Keralam leads in cultivation area (7.54 lakh hectares), Tamil Nadu leads in production, and Andhra Pradesh records the highest productivity followed by West Bengal and Tamil Nadu.
Institutional Framework and Funding
The Coconut Development Board (CDB), established on 12 January 1981 under the Ministry of Agriculture and Farmers Welfare, serves as the primary institutional body overseeing sector development across 22 States/UTs. During 2025-26, ₹147.21 crore was released for implementing various activities through CDB. The board also functions as the Export Promotion Council for coconut products (except husk and fiber), having registered 8,299 exporters by 2025-26 and 8,700 by 31st July 2026.
Government Schemes and Interventions
Multiple schemes were implemented to strengthen the coconut ecosystem. During 2025-26, 2,175 hectares were added under new cultivation across Keralam, Tamil Nadu, Karnataka, Andhra Pradesh, Odisha, West Bengal, Gujarat, Assam, and Arunachal Pradesh with financial assistance of ₹632.77 lakh. The replanting and rejuvenation scheme covered 1,672 hectares during the same period, while over the last five years, 25,517 hectares were covered at a cost of ₹130.46 crore.
The Productivity Improvement Through Coconut-Based Cropping System (PICCS) covered 18,800 hectares benefiting 48,696 farmers organized into 266 clusters with financial outlay of ₹3,943 lakh in 2025-26. Additionally, state government convergence covered another 5,935 hectares in four States/UTs with ₹1,246 lakh assistance. Keralam accounted for 8,089 hectares under PICCS, benefiting 33,250 farmers.
Minimum Support Price and Procurement
The Union Cabinet approved enhanced MSP for copra for the 2026 season, with milling copra fixed at ₹12,027 per quintal (increase of ₹445) and ball copra at ₹12,500 per quintal (increase of ₹400). NAFED and NCCF serve as Central Nodal Agencies for copra procurement alongside state-level agencies.
Quality Planting Material and Infrastructure
The Board produced 2.41 lakh quality coconut seedlings through 11 Demonstration cum Seed Production Farms (DSPFs) in 2025-26. Financial assistance includes ₹30 lakh for new DSPFs establishment and up to ₹1.00 lakh per hectare per year for maintenance from the third year onward. Other initiatives include Nucleus Coconut Seed Garden (₹24 lakh allocated, ₹20.29 utilized), establishment of 12 new nurseries with 1.06 lakh seedlings capacity, and assistance to public sector nurseries amounting to ₹239.35 lakh producing 11.97 lakh planting materials.
Export Promotion and Market Development
The Board facilitated participation of 72 entrepreneurs in 20 Domestic Trade Fairs and 224 exporters in International Trade Fairs over five years. It organized 392 Domestic Buyer Seller Meets for 215 entrepreneurs, including a Virtual Trade Fair in April 2022 with 53 manufacturers and 347 buyers. International events included an International Conference on Trade and Marketing in February 2023 and International Coco Health Conference in August 2025.
Skill Development and Enterprise Creation
The Friends of Coconut Tree programme trained 378 palm climbers in 2024-2025. New initiatives include Cocomitra (organizing climbers into registered units), Kera Kaushal Kendra (handicraft centers with ₹2.67 lakh assistance), and Neera Tapping Technician Training. During 2025-26, the Board conducted 414 awareness training programmes covering scientific cultivation and value addition.
New Policy Initiative
The Union Budget 2026-27 introduced the Coconut Promotion Scheme as part of a ₹350 crore allocation for high-value agriculture (including cashew and cocoa). The scheme aims to address pest outbreaks, root wilt disease, and aging plantations through large-scale seedling production, cultivation expansion, replanting, rejuvenation, crop health management, and integrated processing units to position India as a global leader in coconut exports by the 2030s.
Socio-Economic Impact
The coconut sector supports nearly 30 million people including approximately 10 million farmers, predominantly small and marginal farmers, making it vital to rural livelihoods and economic resilience. Successful case studies demonstrate the profitability of integrated farming models, such as Shri Eshansh Singh Rathore's farm in Chhattisgarh generating ₹5-6 lakh annually from coconut cultivation and ₹10 lakh from intercrops.