India's Coconut Sector: Production, Exports, and Policy Support
India's coconut sector represents a significant agricultural and economic force, supporting approximately 30 million people including 10 million farmers, predominantly small and marginal holders. The country ranks first globally in coconut production, accounting for 31.24% of world production, and third in cultivation area with 17.90% of global area. During 2024-25, India produced 20,301.22 million nuts from 2.19 million hectares with average productivity of 9,249 nuts per hectare. Regional leaders include Keralam with the largest area (7.54 lakh hectares), Tamil Nadu leading in production, and Andhra Pradesh achieving the highest productivity.
Export Performance and Market Diversification
Coconut exports have demonstrated remarkable growth, reaching ₹7,038.35 crore (USD 794.70 million) in 2025-26, representing a 62% increase over the previous year's ₹4,349.03 crore. This marks substantial progress from 2001-02 when exports were only ₹25.3 crore. The export basket has evolved from traditional products to value-added items including virgin coconut oil, coconut milk, coconut water, and activated carbon, which dominates export volumes. Key markets have expanded beyond the Middle East to include the USA, UAE, Sri Lanka, Germany, Russia, Turkey, Belgium, UK, and Netherlands. The Coconut Development Board has registered 8,299 exporters as of 2025-26 and 8,700 as of July 31, 2026.
Institutional Framework and Government Support
The Coconut Development Board (CDB), established in 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 CDB activities. The government maintains a Minimum Support Price regime for copra, with 2026 season MSP set at ₹12,027 per quintal for milling copra (increase of ₹445) and ₹12,500 per quintal for ball copra (increase of ₹400). NAFED and NCCF serve as central nodal agencies for procurement.
Scheme Implementation and Achievements
Multiple schemes have been implemented to strengthen the coconut ecosystem. The Production of Quality Planting Material scheme produced 2.41 lakh quality coconut seedlings through 11 Demonstration cum Seed Production Farms in 2025-26. The Expansion of Area Under Coconut scheme provided financial assistance of ₹56,000 per hectare (max 2 hectares per beneficiary), adding 2,175 hectares of new cultivation in 2025-26 across multiple states with ₹632.77 lakh financial assistance.
The Comprehensive Programme for Sustainable Productivity Improvement covered 18,800 hectares through Productivity Improvement Through Coconut-Based Cropping System (PICCS) with 100% subsidy of ₹42,000 per hectare, benefiting 48,696 farmers in 266 clusters at a cost of ₹3,943 lakh. Additionally, state government convergence covered 5,935 hectares in four States/UTs with ₹1,246 lakh assistance. Replanting and Rejuvenation schemes covered 1,672 hectares in 2025-26 with assistance up to ₹54,000 per hectare over two years.
New Initiatives and Skill Development
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) to address pest outbreaks, root wilt disease, and aging plantations. The scheme focuses on quality seedling production, cultivation expansion, replanting, rejuvenation, crop health management, and integrated processing units.
Skill development initiatives include the Friends of Coconut Tree programme training 378 palm climbers in 2024-25, Cocomitra (Coconut Climbers Task Force) organizing climbers into registered units, Kera Kaushal Kendra establishing handicraft production groups with ₹2.67 lakh financial assistance, and Neera Tapping Technician Training programmes. During 2025-26, the Board conducted 414 awareness training programmes covering scientific cultivation and value addition.
Market Development Activities
The Board facilitated significant market outreach including 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 conferences were held in Hyderabad (February 2023) and Coimbatore (August 2025), with representation at the World Coconut Congress in Manila (September 2025).