Finance Minister Nirmala Sitharaman has announced The Coconut Promotion Scheme in the Union Budget 2026 that marks an important step towards strengthening the coconut industry in India. This initiative is designed to modernize coconut cultivation, improve productivity, and help millions of livelihoods tied to coconut farming and related industries.
India is currently the largest coconut producer in the world however, aging plants, diminishing yields and climate stress have negatively impacted the long-term viability of coconuts. Coconut Promotion Scheme seeks to solve these problems by focusing on specific reforms and intervention at the farm level.
What Is the Coconut Promotion Scheme Announced in Union Budget 2026?
The Coconut Promotion Scheme is a agriculture program that is backed by the government and aimed at improving the condition of the coconut industry across the most popular coconut-growing states. The primary goal is to replace the old, inefficient coconut trees with more productive and climate-resistant varieties that produce higher yields and stability of income for farmers.
A lot of the coconut farms in India are more than 40 to 60 years old, which is well past their most productive period. The program encourages scientific replantation and modern agricultural practices and better plant material to boost productivity.
The scheme forms part of the federal government’s high-value agricultural strategy that emphasizes the cultivation of the crops that can meet strong demand in the domestic market export potential, as well as potential for value-addition.
Coconut Promotion Scheme – Overview
| Aspect | Details |
| Scheme Name | Coconut Promotion Scheme |
| Announced In | Union Budget 2026-27 |
| Announced by | Financial Minister Nirmala Sitharaman |
| The Goal | Increase the productivity of coconuts and modernise the way coconut farmers work |
| Key Point | Removing old and inefficient coconut trees with new high-yielding varieties |
| Part of | High-Value Agriculture Initiative |
| Beneficiaries | Coconut farmers processing, rural communities, and farmers |
| Coverage | The major coconut-growing states in India |
| Livelihoods Supported | More than 30 million (including 10 million farmers) |
| Productivity Method | Modern cultivation methods |
| Effect on consumers | Greater supply stability and lower prices volatility (indirect) |
| Sectors with value-added benefits | Coconut oil and coconut water Coir, cosmetics Food products, cosmetics |
| Official Website | https://www.myscheme.gov.in/ |
Key Objectives of the Coconut Promotion Scheme
Coconut Promotion Scheme Coconut Promotion Scheme has several interconnected objectives:
- Enhance coconut production through replacing the senile or damaged palms
- Enhance the farmer’s income through better yields and more high-quality food
- Promote modern agricultural practices that include spacing, management of nutrient levels, and irrigation
- Improve the supply chain in coconut-based industry
- Improve sustainability and resilience to climate change in coconut cultivation
Focusing on long-term productivity rather than subsidies for short-term purposes this scheme seeks to provide long-term financial benefits to rural villages.
Which Crops Are Included in the High-Value Agriculture Push?
In addition to coconut the government’s high-value agricultural strategy encompasses crops like:
- Cashew
- Cocoa
- Arecanut
- Choose horticultural and plantation crops
They are chosen because of their robust demand in the market, their export potential and their importance in generating employment for rural areas. Coconut is unique among them because of its widespread usage in oil, food drinks, cosmetics and industrial goods.
Who Will Benefit from the Coconut Promotion Scheme?
Coconut Farmers and Rural Communities
The most important customers are the coconut farmers, specifically small and marginal growers in states like Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Odisha, Goa and portions in the Northeast.
Coconut cultivation is a source of more than 30 million people’s livelihoods in India which includes around 10% of farmers which makes it an extremely significant socially-conscious cultivation crops in the world.
A higher productivity level is the result of:
- Better income stability
- Reduction of losses due to aging trees
- Greater resilience against climate stress
Coconut Processing and Allied Industries
The plan is expected to help businesses that are involved in:
- Production of coconut oil
- Coconut water processing
- Copra and coconut, both of which are sweetened with coconut.
- Coir and fiber-based industries
- Cosmetics and personal care items
Quality improvements and regular supply of raw materials will reduce costs, enhance the quality of products, and spur creativity across all levels of the value chain.
How Will the Coconut Promotion Scheme Boost Productivity?
The plan aims to increase productivity by revitalizing the plant. This includes:
- Recognizing old and low yielding coconut palms
- Removal of trees that are not productive
- Replanting with high yielding, disease-resistant varieties
- Promotion of research-based spacing and management of nutrients
- Promoting better practices for soil health and irrigation
In time, these steps are expected to substantially improve yields per hectare, thereby improving the efficiency of farms as well as the output of the nation.
How Will the Scheme Impact Consumers?
While Coconut Promotion Scheme Coconut Promotion Scheme does not directly affect consumers, the impacts are anticipated to be indirect, but positive.
When productivity increases:
- The availability of coconuts could increase in stability
- Coconut products’ quality could be improved
- Price fluctuations that are extreme could decrease in time
Industries and households who rely heavily upon coconut, better supply chains can result in greater access and lower price fluctuation.
Does the Scheme Include Price Control or Subsidies?
The Coconut Promotion Scheme does not put price controls directly regarding coconuts and coconut-related products. Instead, it concentrates on structural improvements to manufacturing and efficiency.
In order to increase supply and reduce productivity losses, this scheme seeks to stabilize the market on its own instead of through price intervention.
Why the Coconut Promotion Scheme Matters for India
Coconut is not just an Indian crop, it plays an important part in:
- Rural employment
- Food security and nutrition
- Traditional industries like coir
- Export earnings
Through investment in the renewal of plantations and modern methods of cultivation by investing in modern practices and plantation renewal, the Coconut Promotion Scheme strengthens India’s position as a world coconut leader, while also improving the financial security of rural households.
FAQ’s
1. Does the Coconut Promotion Scheme affect coconut prices in India?
The scheme doesn’t include price control however, the increased production and improved supply chains could help to reduce significant price fluctuations in the long run.
2. Can the system permit goods made of coconut that are value added?
Indirectly, yes. A higher-quality coconut and a stable supply could help in the development of processing industries like coconut oils, coconut water and coir-based products.
3. Who can gain in this Coconut Promotion Scheme?
Coconut farmers in the major states that grow coconuts are the main beneficiaries, as are processors and other industries that are linked to the value chain for coconuts.
