Coconut Promotion Scheme

Context

Recently, Union Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2026–27, proposed a dedicated “Coconut Promotion Scheme” aimed at enhancing the competitiveness of India’s coconut sector.
The scheme prioritizes increasing productivity through interventions such as replacing old, senile, and non-productive trees with high-yielding saplings in major coconut-growing states.
This initiative is part of a broader shift toward supporting high-value plantation crops like coconut, cashew, and cocoa to diversify farm outputs and enhance farmers’ incomes.

Basic of Coconut

1. Production Status and Ranking

Global Position: India is the third-largest producer of coconuts in the world, following Indonesia and the Philippines.
Livelihood: Approximately 30 million people and nearly 10 million farmers in India depend on coconut cultivation for their livelihoods.
Major Producing States: The four southern states—Karnataka, Tamil Nadu, Kerala, and Andhra Pradesh—collectively account for about 90% of India’s total coconut production.
Expansion: Cultivation is expanding to non-traditional areas, including the North-Eastern states (Assam and Tripura) and coastal regions of Odisha and West Bengal.

2. Climatic and Geographical Requirements

Nature of Crop: It is essentially a tropical plant, typically grown between 20°N and 20°S latitudes.
Temperature: It requires an ideal mean annual temperature of 22°C-32°C Reproductive growth is hindered if temperatures fall below 10°C.
Rainfall: A well-distributed annual rainfall of 1300 mm to 2300 mm is preferred. In areas with uneven rainfall, irrigation is essential.
Sunlight: The palm requires plenty of sunlight (roughly 2000 hours of sunshine annually) and does not thrive in heavily shaded or cloudy regions.
Soil: It can grow in diverse soil types including laterite, coastal sandy, alluvial, and saline soils. A pH range of 5.0 to 8.0 is tolerable, provided there is proper drainage.

3. Institutional and Regulatory Framework

Coconut Development Board (CDB): It is a statutory body established in 1981 under the Ministry of Agriculture and Farmers Welfare. Its headquarters is located in Kochi, Kerala.
Mandate: The CDB focuses on integrated development, productivity increase, product diversification, and providing technical advice to the coconut industry.
Minimum Support Price (MSP): The government fixes the MSP for Milling Copra and Ball Copra.
- Nodal Agencies: NAFED and NCCF act as the central nodal agencies for procurement under the Price Support Scheme (PSS).

4. Key Highlights: Coconut Promotion Scheme

Primary Goal: Transform India from the 3rd largest producer to a global leader in yield and quality.
Rejuvenation: Financial support to replace senile and non-productive palms with high-yielding, early-bearing varieties.
Cluster Development: Part of a ₹350 crore allocation for high-value crops (Coconut, Cashew, Cocoa, Sandalwood).
Processing Hubs: Establishing dedicated facilities for Value Addition (Virgin Coconut Oil, Coconut Water, Coir Pith).
Digital Integration: Linking coconut farmers to the Bharat-VISTAAR (AI-Advisory) platform for real-time pest and nutrient management.
Export Branding: Positioning Indian coconut as a premium global brand to compete with Indonesia and the Philippines

Q. With reference to coconut cultivation and its status in India, consider the following statements:
1. India is currently the largest producer of coconuts globally, surpassing Indonesia and the Philippines.
2. The Coconut Development Board is a statutory body headquartered in Chennai, Tamil Nadu.
3. The Union Budget 2026-27 has proposed a scheme to replace senile and unproductive trees with high-yielding varieties.
4. NAFED is one of the nodal agencies for the procurement of copra under the Price Support Scheme.

How many of the statements given above is/are correct?
A) Only one
B) Only two
C) Only three
D) All four

Answer: B) Only two
Solution:
STATEMENT 1 INCORRECT: While the Budget speech highlighted India's prominence, according to global data (FAO), India is the third-largest producer, behind Indonesia and the Philippines.
STATEMENT 2 INCORRECT: The Coconut Development Board is indeed a statutory body, but its headquarters is in Kochi, Kerala, not Chennai.
STATEMENT 3 CORRECT: The Union Budget 2026–27 explicitly introduced the Coconut Promotion Scheme to rejuvenate old plantations with high-yielding saplings.
STATEMENT 4 CORRECT: NAFED (along with NCCF) serves as the central nodal agency for the procurement of copra.