Context:
The Government of India highlighted that India is the largest global producer of coconut (30.37%). In this backdrop, the Coconut Promotion Scheme announced in Union Budget 2026–27 is under formulation to enhance productivity, farmer income, and global competitiveness.
Key Highlights:
- Government Initiative / Policy Details
- A Central Sector Scheme targeting coconut-growing regions.
- Announced under a broader ₹350 crore allocation for high-value crops (coconut, cashew, cocoa).
- Focus on improving productivity, quality, and value addition.
- Key Features of the Scheme
- Replantation & Rejuvenation:
- Replacement of old and low-yielding trees with high-yielding varieties.
- Improved Varieties:
- Promotion of disease-resistant and climate-resilient cultivars.
- Productivity Enhancement:
- Adoption of better agronomic practices, irrigation, and nutrient management.
- Value Addition & Export Promotion:
- Encouragement for processing, branding, and export of coconut products.
- Farmer Support:
- Targeted interventions to improve livelihoods of coconut farmers.
- Scheme Status
- Currently under formulation.
- State/UT-wise fund allocation yet to be finalised.
- Data & Statistics
- Global Rank: 1st largest producer.
- Share in global production: 30.37%.
- Area under cultivation (India): 2165.20 thousand hectares.
- Global area: ~12390 thousand hectares.
- Annual production: 21373.62 million nuts.
- Average productivity: 9871 nuts/hectare.
- Livelihood dependence: ~30 million people (including ~10 million farmers).
- Stakeholders Involved
- Ministry of Agriculture & Farmers Welfare.
- Coconut Development Board (likely implementing agency).
- Coconut farmers, processors, exporters.
- Significance
- Strengthens high-value agriculture and diversification.
- Enhances export potential and agro-processing sector.
- Supports climate-resilient agriculture.
Relevant Prelims Points:
- Coconut Development Board (CDB) functions under Ministry of Agriculture.
- Coconut is a major plantation crop grown in states like Kerala, Tamil Nadu, Karnataka, Andhra Pradesh.
- India leads global production but faces productivity challenges compared to some countries.
- Plantation crops contribute significantly to agricultural exports and rural livelihoods.
- High-value crop schemes aim to promote value chains and agro-processing.
Relevant Mains Points:
- Importance for Agricultural Economy
- Coconut sector supports millions of farmers and workers.
- Promotes diversification from traditional cereals to high-value crops.
- Challenges in Coconut Sector
- Aging plantations and low productivity.
- Vulnerability to climate change and pests/diseases.
- Limited value addition and branding.
- Role in Rural Development
- Enhances income stability through diversified products (oil, copra, coir, etc.).
- Boosts agro-processing industries and employment generation.
- Export Potential
- Scope to increase India’s share in global coconut product markets.
- Need for quality standards, certification, and branding.
- Way Forward
- Promote cluster-based coconut development.
- Strengthen processing infrastructure and cold chains.
- Encourage Farmer Producer Organisations (FPOs).
- Enhance research & development for climate-resilient varieties.
- Improve global market linkages and export facilitation.
UPSC Relevance:
• GS 3: Economy (Agriculture, allied sectors, value chains)
• GS 3: Environment (Climate-resilient agriculture)
• Prelims: Government schemes, plantation crops, agricultural data