Indian Economy News

India leads global coconut production, centre announces promotion scheme

  • IBEF
  • March 18, 2026

India continues to maintain its position as the world’s largest coconut producer, contributing over 30% of global output, as informed by the government in Parliament. The coconut sector plays a crucial role in the rural economy, supporting millions of farmers and livelihoods across key producing states such as Keralam, Tamil Nadu, Karnataka, and Andhra Pradesh. The sector is also significant for allied industries, including coir, coconut oil, and value-added products. However, challenges such as ageing plantations, pest infestations, and declining productivity have impacted overall output and farmer incomes, highlighting the need for targeted policy intervention.

To address these challenges, the government has introduced a comprehensive Coconut Promotion Scheme aimed at enhancing production, productivity, and value addition in the sector. The scheme focuses on replanting old and unproductive trees, promoting high-yield and disease-resistant varieties, and encouraging intercropping to improve farm viability. It also includes measures to strengthen processing infrastructure, expand cultivation in suitable regions, and boost exports of coconut-based products. By adopting a holistic approach covering the entire value chain from cultivation to processing, the initiative seeks to increase farmers’ incomes, improve sustainability, and reinforce India’s leadership in the global coconut market. The scheme is expected to create long-term growth opportunities while ensuring resilience and competitiveness in the sector.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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