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Coconut Industry Opportunities and Strategies for Export Promotion


The water of Tender Coconut is a sterile, nutritious, thirst quenching health drink. The pure and sweet tender coconut possesses enormous therapeutic properties and ... – PowerPoint PPT presentation

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Title: Coconut Industry Opportunities and Strategies for Export Promotion

Coconut IndustryOpportunities and Strategies
for Export Promotion
  • Dr K Muralidharan
  • Director
  • Coconut Development Board
  • (Ministry of Agriculture, GoI)
  • Kochi
  • Food and Agri Exporters Conclave, ASSOCHAM,
  • 09-09-2009 at New Delhi

Coconut Development Board
  • Coconut Development Board was set up by an Act of
    Parliament in 1981 to oversee the overall
    development of the Coconut Industry.
  • Initial focus was on improvement of production
    and productivity
  • Under Technology Mission on Coconut, the Board
    has started playing a facilitating role to
    promote exports.
  • The Commerce Ministry notified Coconut
    Development Board as an Export Promotion Board
    w.e.f 1-4-2009. Since then, the Board has taken
    several measures to understand the problems of
    the Industry and initiated steps to address the

Coconut Production and Productivity
Value added coconut products
  • Size of the Inland market Rs 83000 million
  • Size of the Export Market Rs 3000 million
    (Coconut products) and Rs 6400 million (Coir
  • CAGR 8

Consumption Pattern of Coconut
Mature Nut
Industrial 10
Domestic 90
Tender Nut
Seed Others
Export prospects for various coconut product
  • Copra
  • Copra is the dried kernel of coconut. It is from
    copra that coconut oil is produced. Copra
    contains the highest percentage of oil as
    compared to other oil seeds.
  • The two broad varieties of copra are milling
    copra and edible copra. Milling copra is used for
    extracting oil whereas edible copra is used in
    condiments and in religious and social functions.
    India producing about 6.5 lakh MT of milling
    copra and 2 lakhs MT of Ball copra. The major
    exports of copra is to Bangladesh and Nepal.

  • Coconut Oil
  • Coconut oil is used for, both edible and non
    edible purposes. It is also consumed in various
    industrial applications, soap, shampoo,
    detergents, etc. A portion of coconut is also
    used in the making of ice creams and biscuits,
    chocolates which can be described as industrial
    purposes though the finished products are edible.
  • Around 10,000 tonnes of Coconut oil is exported
    mostly to the Gulf Region Consumed by Ethnic
  • Contrary to misconceptions, coconut oil does not
    elevate total blood cholesterol. Instead, it
    increases HDL or the friendly cholesterol, lowers
    harmful LDL cholesterol and serum triglycerides.
    Coconut oil mainly exported to the Gulf region.
  • Annual production of Coconut Oil is 4.85 lakh

  • Virgin Coconut Oil
  • Virgin Coconut Oil (VCO), extracted from fresh
    coconut meat without chemical processes is said
    to be the mother of all oils.
  • It is rich in medium chain fatty acids,
    particularly lauric acid and is a treasure trove
    of minerals, vitamins, antioxidants and is an
    excellent nutraceutical. It has about 50 lauric
    acids, having qualities similar to mothers milk,
    thus confirming its disease fighting ability.
    Virgin Coconut Oil finds application as skin oil,
    massage oil, baby oil and consumed in USA /
    Europe for reducing obesity.

  • Desiccated Coconut
  • Coconut has been the staple food of people in
    many parts of Asia and Pacific Islands. The
    dehydrated shredded flesh of coconut known as
    desiccated coconut is often used as a substitute
    to grated coconut in food preparations such as
    curries, cakes, sweets and chutneys.
    Confectionery and bakery units are the main
    consumers of desiccated coconut. Total production
    of DCP is about 50,000 MT mainly concentrated in
    Karnataka and Tamil Nadu. Exports amout to about
    2000 Tones

  • Spray Dried Coconut Milk Powder
  • The Spray Dried Coconut Milk Powder is now
    available in convenient and ready-to-use packs
    with the same freshness of a fresh coconut milk.
    It has longer a shelf life and is convenient to

  • Tender Coconut Water
  • The water of Tender Coconut is a sterile,
    nutritious, thirst quenching health drink. The
    pure and sweet tender coconut possesses enormous
    therapeutic properties and is a thirst quenching
    refreshing health drink for all age groups. It is
    loaded with natural sugars, salts, and vitamins
    and is low in fat, calories and has no
    cholesterol. It's a highly rejuvenating tonic
    that can ward off fatigue in an instant. Tender
    coconut water has the same level of electrolytic
    balance as we see in our blood.Technology
    available for packing preserving TCW.

  • Activated Carbon
  • Coconut Shell is used for manufacturing a variety
    of products of commercial importance including
    activated carbon. Shell based activated carbon is
    extensively used in the process of refining and
    bleaching of vegetable oils and chemical
    solutions, water purification, recovery of
    solvents, recovery of gold etc. It is used in gas
    masks and a wide range of filters for war gases
    and nuclear fall outs. Coconut shell based
    activated carbons units adopt steam activation
    process to produce good quality activated carbon.

  • Activated Carbon is made both by the organized
    and un-organized industry
  • There are 18 medium sized Companies in India who
    make activated Carbon using state-of-the-art
    machines. The other manufacturers are tiny
    manufacturers in the un-organized sector. The
    total production of Activated Carbon is 45000 MT
    / annum.
  • The present exports is directed at United states,
    UK, Germany, Japan, France, and averages around
    Rs 1500 million. There is an enlarged market
    potential for activated Carbon because of its
    unique natural properties.

  • Coconut Based Handicrafts
  • Coconut Handicrafts made out of the wood shell,
    fibre/husk and leaves of the coconut tree have
    high decorative value and serve as a value
    addition bringing with it the aesthetic touch and
    exquisiteness wherever it is used
  • The timber can be converted into doors, windows,
    wall panels, banisters. Coconut fibre is used to
    make coir products such as bags, table mats,
    sandals, wall hangings etc. Coir mats and carpets
    are also made out of the coconut fibre.

Direction of Exports
  • Coconut oil has an excellent potential in Gulf,
    Europe, and America, the user being the ethnic
  • Activated Carbon has been increasing its market
    share and demand from USA, United Kingdom,
    Germany, France, Japan etc.
  • Processed and packaged tender coconut water has
    been bagging orders from Gulf and UK.
  • China, is a growing market for coconut and its
    various products, Russia is emerging as one of
    the major buyers of Coconut oil and Virgin
    Coconut oil, Germany is an emerging market
    particularly for desiccated Coconut powder,
    coconut milk powder etc.
  • Handicrafts, Ice cream cups spoons etc made from
    coconut shell is exported to European countries
  • Indian Coconut products are rated as premi
    quality products.

  • Coconut growing countries like Malaysia,
    Philippines, and other ASEAN countries are
    concentrating on manufacturing Palm oil, other
    Coconut value added products with new
    technology, Government support, high level RD
  • Their brands have premium clientele.
  • India can outreach them only by increasing the
    present range of products, increasing its value
    addition, look at new markets, penetrate and
    establish a niche presence, with cost effective
  • Indian products should be visible in the Retail
    stores with attractive packing, and should match
    the pricing of competitive products from ASEAN,
    Sri Lanka and other Coconut value-added product
    manufacturing countries.
  • India should record presence by participating in
    the world renowned international trade fairs
    across the globe by utilizing the Market
    Development Assistance and Market Access
    Initiative Scheme of the Foreign Trade Policy
    enumerated in Para 3.2 of the FTP.

Current status of exports
  • Strengths of the Indian Coconut Sector
  • One of the largest producers of coconut in the
    world Sufficient raw material surplus.
  • Quality of Indian coconut product enjoys good
  • Access to good technologies (Virgin Coconut Oil,
    Packed Tender Nut Water, minimally processed
    Tender Coconuts, Activated Carbon)
  • Dominant ethnic population in the Gulf, UK and US
  • Being a natural and eco friendly product, coconut
    has a future and potential for earning carbon

  • Lack of big players from the coconut sector in
    the international market
  • Lack of exposure to the international market and
    its specific requirements
  • The weak financial status of the small and tiny
    exporters who cannot take up effective export
    promotion programmes
  • Price disadvantages Cost of production is high.
    INR appreciation vis-à-vis SLR.
  • Lack of market penetration
  • Competing countries of South East Asia have
    already an established presence in important
    international markets and have cost advantages
  • Supply side is highly disorganized and fragmented
  • Coconut products occupy large volume and has low
    unit value (.) Tariff freight is against volume.

  • Coconut shell based Activated Carbon is an
    agricultural and environmentally friendly
    products. Its classification under ITC Code
    under Miscellaneous Chemical Products deprives
    this product of the benefits due for an
    environmentally friendly product.
  • Board has proposed to the Ministry of Finance to
    reclassify it under Chapter 44 as an Agriculture
  • Since coconut industry is labour intensive and
    generates rural employment coconut and its value
    added products should be provided benefits under
    Vishesh Krishi Udyog Yojana, FPS, Duty draw back
  • Increased exposure to international markets
    through regular participation in important fairs
    and exhibition
  • Restore DEPB Scheme for Copra
  • Allowing exports of Coconut Oil from all southern
    ports in India
  • Harmonising national standards with international
    standards for coconut products

  • Rupee appreciation vis-à-vis the dollar
  • Freight disadvantages
  • Geographical distance from end markets
  • Competitive advantages of South East Asian
    Countries in the world market

  • So far adequate attention has not been given to
    promoting exports from the coconut sector
  • The strength of being a natural product has not
    been properly leveraged.
  • Coconut Sector needs to be incentivised.
  • If proper stimulus is given to coconut which is
    an agricultural product generating employment in
    rural area there is a distinct possibility of
    taking exports to a high level.

  • In order to assist the Industry, Coconut
    Development Board has requested Commerce Ministry
    to include Coconut and its value added products
    for sizable concessions under Duty Entitlement
    Pass Book Scheme, Duty Drawback Scheme, Focus
    Product Scheme, Vishesh krishi Gram Udyog Yojana,
    approval of MAI grant for participation in 4
    international Trade Fairs in Germany, China,
    Florida and Dubai during 2009-10. Board was also
    moved Customs authorities to reclassify the
    Coconut based products under the head of
    Agriculture products so that activated Carbon,
    Coconut handicrafts and other products can be
    classified as Agriculture products and brought
    under Environment Product tag to enable claim
    Carbon credits under Kyoto Protocol.

Thank You