Coconut Sector Drives Rural Economy, India Emerges as World’s Largest Producer
Nearly 30 million people depend on the sector; exports cross ₹7,000 crore as government steps up support for farmers
New Delhi: Coconut is no longer confined to India’s cultural and religious traditions. It has emerged as an important pillar of the rural economy, supporting the livelihoods of nearly 10 million farmers and around 30 million people across the country. India is the world’s largest coconut producer, while government initiatives are expanding cultivation, rejuvenating old plantations, promoting value addition and strengthening exports.
Known as the “Kalpavriksha” or tree of life, the coconut palm provides food, water, oil, fibre, fuel, timber and raw material for a wide range of industries. Its diverse uses are creating new employment and income opportunities for rural households.
Coconut Farming Opens New Opportunities in Bastar
Coconut cultivation is emerging as a promising livelihood option in Bastar, Chhattisgarh, where farmers traditionally depended on paddy, millets, maize and minor forest produce.
The Coconut Development Board’s demonstration-cum-seed production farm at Kondagaon has been helping farmers adopt scientific coconut cultivation.
Ishansh Singh Rathore, a farmer from Bakawand, has planted around 2,500 coconut trees. He has also adopted a multi-layer farming model with pineapple, dragon fruit, mango, citrus, banana, guava, papaya, litchi, coffee, strawberry and seasonal vegetables.
The diversified model has generated around ₹5-6 lakh annually from coconut cultivation and nearly ₹10 lakh from intercrops, demonstrating the potential of integrated farming to increase farm income.
India Ranks First in Global Coconut Production
India ranks first in the world in coconut production and third in terms of area under coconut cultivation.
During 2024-25, the country produced around 20,301.22 million coconuts from approximately 2.19 million hectares, with average productivity of 9,249 nuts per hectare.
Among Indian states, Kerala has the largest area under coconut cultivation, while Tamil Nadu leads in production and Andhra Pradesh records the highest productivity.
Coconut Exports Rise Sharply
India’s coconut industry has moved beyond traditional commodities and is increasingly focusing on value-added products such as virgin coconut oil, coconut milk, coconut water and activated carbon.
Coconut product exports reached ₹7,038.35 crore in 2025-26, registering an increase of around 62 per cent compared with ₹4,349.03 crore earlier.
India’s major trading partners include the United States, UAE, Sri Lanka, Germany, Russia, Türkiye, Belgium, the United Kingdom and the Netherlands.
Activated carbon, coconut oil, fresh or grated coconut, copra and dried coconut are among the major export products.
Higher MSP Gives Relief to Coconut Growers
The government has increased the Minimum Support Price (MSP) for copra for the 2026 season.
Milling Copra: ₹12,027 per quintal
Ball Copra: ₹12,500 per quintal
The MSP has increased by ₹445 per quintal for milling copra and ₹400 per quintal for ball copra compared with 2025.
The move is aimed at ensuring remunerative returns to coconut growers while encouraging higher production.
2,175 Hectares Brought Under New Coconut Cultivation
Government efforts have also focused on expanding coconut cultivation to new areas. During 2025-26, around 2,175 hectares of new area was brought under coconut cultivation with financial assistance of ₹632.77 lakh.
At the same time, efforts are underway to rejuvenate old, diseased and unproductive plantations. During 2025-26, 1,672 hectares were covered under plantation rejuvenation and rehabilitation.
‘Coconut Promotion Scheme’ Announced in Union Budget 2026-27
The Union Budget 2026-27 announced the ‘Coconut Promotion Scheme’ to address challenges such as pest attacks, root-wilt disease and ageing plantations.
The scheme focuses on:
Large-scale production of quality planting material
Expansion of coconut cultivation in suitable areas
Replanting and rejuvenation of old plantations
Integrated crop health management
Establishment of integrated coconut processing units
Strengthening value addition and exports
The initiative is expected to provide further momentum to sustainable coconut cultivation and farmer incomes.
Coconut Development Board Strengthens the Sector
Established on 12 January 1981, the Coconut Development Board plays a key role in the integrated development of India’s coconut sector.
Its major areas of focus include production of quality planting material, expansion of coconut acreage, improvement of plantation productivity, pest and disease management, product diversification and promotion of value-added products.
During 2025-26, ₹147.21 crore was released for activities under the Board.
The Board’s 11 demonstration-cum-seed production farms produced around 2.41 lakh quality coconut seedlings during the year.
Skill Development Creates New Rural Employment
The coconut sector is also creating employment opportunities through skill-development initiatives.
Under the ‘Friends of Coconut Tree’ (FoCT) programme, young people are trained in tree climbing, plant protection and related skills. In 2024-25, 378 coconut tree climbers were trained across the country.
The ‘Cocomitra’ initiative further seeks to organise trained climbers into registered groups so that farmers can receive timely plantation and harvesting services.
From Cultural Heritage to Global Agribusiness
India’s coconut sector is undergoing a major transformation. From traditional cultivation, the industry is moving towards integrated farming, processing, value addition and global exports.
With better planting material, plantation rejuvenation, MSP support, skill development, modern processing and the new Coconut Promotion Scheme, the sector is opening new avenues for farmers and rural entrepreneurs.
For centuries, coconut has been revered in India as the “Kalpavriksha”. Today, it is emerging not only as a symbol of cultural heritage but also as a powerful engine of rural livelihoods, agricultural growth and India’s global agri-export ambitions.
