Coconut Promotion Scheme 2026: India’s Strategy to Boost Productivity and Exports

Source: TOI

Context:

The Government of India, in the Union Budget 2026–27, announced the Coconut Promotion Scheme to strengthen the coconut sector, where India is the largest producer globally with a 30.37% share.

The scheme is part of a broader ₹350 crore allocation for high-value crops, including coconut, cashew, and cocoa.

What is the Coconut Promotion Scheme?

The Coconut Promotion Scheme is a Central Sector Scheme aimed at:

• Enhancing coconut productivity
• Improving quality of produce
• Promoting value addition and exports
• Strengthening farmer livelihoods

Scheme Status

• Currently under formulation
• State-wise fund allocation yet to be finalised

Objectives of the Scheme

Increase Production and Productivity

• Replace low-yielding and ageing plantations
• Promote modern farming practices

Enhance Farmer Income

• Improve yield and market value
• Encourage diversification into value-added products

Improve Global Competitiveness

• Enhance quality standards
• Boost exports of coconut-based products

Promote Value Addition

• Support processing industries
• Develop branding and export-oriented products

Key Features of Coconut Promotion Scheme

1. Replantation and Rejuvenation

• Replacement of:
  • Old and senile coconut trees
  • Low-yielding varieties
• Introduction of high-yielding cultivars

2. Improved Varieties

• Promotion of:
  • Disease-resistant varieties
  • Climate-resilient cultivars

This ensures sustainability under changing climatic conditions.

3. Productivity Enhancement

• Adoption of:
  • Scientific agronomic practices
  • Efficient irrigation systems
  • Balanced nutrient management

4. Value Addition and Processing

• Encouragement for:
  • Coconut-based industries
  • Processing units
  • Branding and exports
• Focus on products like:
  • Coconut oil
  • Coir products
  • Coconut water
  • Processed coconut goods

5. Farmer Livelihood Support

• Targeted interventions to:
  • Improve income security
  • Generate rural employment
  • Strengthen the coconut value chain

India’s Position in Coconut Production

• Global Rank: 1st
• Share in Global Production: 30.37%
• Annual Production: 21,373.62 million nuts

India’s leadership highlights the importance of improving productivity and export competitiveness.