India is among the major players of coconut exporters and accounted for about 34% of the world’s total production during 2020-21. The crop contributes around Rs. 307,498 million (US$ 3.88 billion) to the country’s gross domestic product (GDP). The coconut palm provides food security and livelihood opportunities to more than 12 million people in India . It is also a fiber yielding crop for more than 15,000 coir-based industries, providing employment to nearly 6 lakh people . The productivity of coconut at a national level for 2020-21 was at 9,687 nuts per hectare and is one of the highest in the world. Copra processing, coconut oil extraction and coir manufacturing are the traditional coconut-based activities in the country. India’s coconut production is majorly situated in Kerala, Karnataka and Tami Nadu and Andhra Pradesh, accounting for 89.13% of the coconut area and 90.04% of the coconut production in the country. Other coconut-producing states in the country are West Bengal, Orissa and Gujarat.
During the year 2021-22, the Government of India has provided financial assistance to the tune of Rs. 801 million (US$ 10 million) for covering a fresh area of 4,078 hectare under the expansion of area under coconut initiative and 91-hectare demonstration plots for productivity improvement. This includes establishing six new coconut nurseries and a coconut nucleus seed garden and six new coconut processing units for value-added products like virgin coconut oil (VCO), activated carbon and ball copra, spray dried coconut milk powder.
EXPORT TREND
India plays a prominent role in the global coconut and related products supplies. Between 2015-16 and 2021-22, the total coconut exports from India grew at a CAGR of 13%. During 2021-22, the coconut exports of India crossed Rs. 3,000 crore (US$ 418 million) mark, an increase of 40% from the previous year . This strong export growth is helping create more employment required in the production of various coconut-based products such as coconut chips, coconut milk, coconut sugar, coconut water, tender coconut water, coconut honey, coconut jaggery, coconut milkshake, coconut snacks, virgin coconut oil, coconut natural cream, etc. that are seeing high export demand. There are about sixty-three top exporting ports in India that trade coconut and related products to its export destinations. Cochin port exports most of the coconut shipments from India with a share of 30%, followed by Tuticorin port with 19.0% share of total coconut exports.
In the calendar year 2020, India’s coconut oil exports were valued at US$ 31.8 million, making it the 13th largest exporter of coconut oil in the world. Trade in coconut oil represent 0.031% of total world trade. The exports of coconut oil grew between 2019 and 2020 by 7.16%, from US$ 4.78 billion to US$ 5.12 billion.
EXPORT DESTINATIONS
India exports coconut to more than 140 countries around the world. The major importers of coconut from India are Vietnam, the UAE, Bangladesh, Malaysia and USA. For 2020-21, The amount of coconut exports to these top 5 countries are valued at Vietnam (US$ 29.6 million), United Arab Emirates (US$ 16.61 million), Bangladesh (US$ 14.63 million), Malaysia (US$ 11.27 million), USA (US$ 5.84 million) accounting for 66% of the exports from India. Vietnam is the major importer with a share of 25%, followed by UAE and Bangladesh, making for 14% and 12% of India’s coconut exports, respectively.
In 2016, India started exporting coconut oil to countries like Malaysia, Indonesia, and Sri Lanka, the countries from where it was getting imported earlier. In the same year, India commenced exporting of desiccated coconut to USA and Europe in large quantities under the initiative of the government along with coconut development board (CDB) to assist the coconut farmers in production, processing, marketing and export of value-added coconut products. The main destination for coconut oil exports from India are UAE, Saudi Arabia, the US and Vietnam. During the 2019 to 2020 period, the fastest growth in coconut oil exports was witnessed in countries like Saudi Arabia, the US and Vietnam.
Courtesy... IBEf
