With new promotional schemes announced in the Budget, coconut has been elevated from a traditional plantation crop to a high-value product, reinforcing its role as the backbone of India’s coastal economy. The move is expected to ensure that the “Kalpavriksha” continues to support livelihoods, while unlocking new opportunities in global markets.
Finance Minister Nirmala Sitharaman said, “To diversify farm outputs, increase productivity, enhance farmers’ incomes, and create new employment opportunities, we will support high value crops such as coconut…” About 30 million people, including nearly 10 million farmers, depend on coconuts for their livelihood.
“To further enhance competitiveness in coconut production, I propose a Coconut Promotion Scheme to increase production and enhance productivity through various interventions including replacing old and non-productive trees with new saplings/plants/varieties in major coconut growing States,” she said.
Industry sources said the government has laid out a clear blueprint for India — already the world’s largest coconut producer — to emerge as a dominant player in the high-end and value-added coconut segment. A major focus of the initiative is the rejuvenation of ageing plantations through the systematic replacement of senile and unproductive trees with high-yielding, pest-resistant varieties across key growing States such as Kerala, Tamil Nadu, Karnataka and Andhra Pradesh.
Officials at the Coconut Development Board said the promotional schemes would significantly strengthen the sector, which supports nearly 30 million people, including around 10 million farmers. Nearly 30 per cent of coconut trees in traditional growing regions are senile, and the budgetary support is expected to accelerate plantation rejuvenation while easing the financial constraints faced by farmers.
₹125 cr for various initiatives
The recognition of coconut as a high-value crop is also expected to aid branding and marketing of Indian coconut and value-added products in international markets, providing a major boost to the farming community.
Under the 2025-26 scheme for the development of coconut industry, the government has allocated ₹125 crore for various initiatives, including value addition — an increase of two to ten times compared to allocations in the previous year. Exports of coconut and coir products, registered a 26 per cent rise in 2024-25 to reach ₹8,692 crore, compared to 2023–24, officials said.
The newly announced scheme seeks to strengthen the competitiveness of the coconut sector through a range of targeted interventions including the replacement of senile and non-productive coconut palms with quality planting materials.
Rejuvenation needed
Vinod Kumar P, Chairman of the Consortium of Coconut Producer Companies said the promotion scheme will benefit farmers to increase production. Currently, the productivity in Kerala is 120 nuts per hectare and measures have been taken to enhance it on par with neighbouring Tamil Nadu and Karnataka.
Joshy Joseph, Director of IndCarb Activated Carbon Pvt Ltd, said increasing coconut production would help activated carbon producers with more raw material availability of coconut shells. Currently, there is a shortage of raw materials and farmers will be benefited out of selling coconut shells to the industry.
KK Devraj, a consultant in the coconut oil industry, said coconut is a backyard crop in Kerala and majority trees are 40-50 years old. A rejuvenation is necessary to enhance production which would be beneficial in the long term considering the recent drop in production.
Published on February 1, 2026
