The Coconut Promotion Scheme is a Central Sector Scheme announced in the Union Budget 2026-27 to strengthen India’s coconut sector through replantation, better varieties, higher productivity and value addition. India is the world’s largest coconut producer with a 30.37 per cent share of global output, and the scheme is part of a broader Rs 350 crore allocation for high-value crops – coconut, cashew and cocoa.
Context
- The Government of India announced the Coconut Promotion Scheme in the Union Budget 2026-27 to enhance productivity, improve quality and promote value addition in coconut.
- It sits within a Rs 350 crore allocation for three high-value crops – coconut, cashew and cocoa.
- At the time of announcement the scheme was under formulation and state-wise fund allocation was yet to be finalised.
Objectives
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- Increase coconut production and productivity.
- Enhance farmer income and rural employment in coconut-growing regions.
- Improve the global competitiveness of Indian coconut products.
- Promote value-added exports – oil, coir, desiccated coconut, coconut water, activated carbon.
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Key Features
- Replantation and rejuvenation: replacing old, senile and low-yielding palms with high-yielding plants.
- Improved varieties: disease-resistant and climate-resilient cultivars, including hybrids.
- Productivity enhancement: better agronomy, efficient irrigation and scientific nutrient management.
- Value addition and processing: support for coconut-based industries, branding and exports.
- Farmer livelihood support: targeted interventions to strengthen income security.
India's Position in Coconut
- Global rank: first; share of world production: 30.37 per cent; annual production: about 21,374 million nuts.
- Kerala, Karnataka, Tamil Nadu and Andhra Pradesh account for roughly 90 per cent of output; Lakshadweep has the highest productivity.
- The Coconut Development Board (1981, headquartered at Kochi) under the Ministry of Agriculture and Farmers Welfare promotes the crop; World Coconut Day is observed on 2 September.
- Coconut is a plantation crop grown mainly by small holders; price volatility, root-wilt disease and ageing palms are the main challenges.
Why It Matters
- Coconut supports about 1.2 crore people in India’s coastal and southern states, with coir and processed products giving rural employment, especially to women.
- Value addition – tender coconut water, virgin coconut oil, neera, coir products – fetches far higher returns than raw copra.
Important Facts for Examsmost asked
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- India: largest coconut producer, 30.37 per cent of world output, about 21,374 million nuts a year.
- Coconut Development Board: 1981, Kochi; World Coconut Day: 2 September.
FAQs
What is a Central Sector Scheme?
A scheme fully funded and implemented by the Central Government, unlike Centrally Sponsored Schemes where states share the cost.
Which states grow the most coconut?
Kerala, Karnataka, Tamil Nadu and Andhra Pradesh, followed by Odisha, West Bengal, Gujarat and Maharashtra.
Why is coconut important for NABARD Grade A?
Plantation crops, the Coconut Development Board and production statistics are regular ARD questions.
