What is coconut promotion scheme? Who benefits and other details
Finance Minister Nirmala Sitharaman announced the Coconut Promotion Scheme in the Union Budget 2026 to enhance coconut farming in India. The scheme aims to improve productivity and support millions of farmers, potentially stabilising prices and boosting related industries.
The Coconut Promotion Scheme was announced by Finance Minister Nirmala Sitharaman in her Union Budget 2026–27 speech on February 1, 2026. The scheme aims to strengthen coconut cultivation in India by boosting production, improving productivity, and modernising farming practices in key coconut-growing states.
WHAT IS THE COCONUT PROMOTION SCHEME ANNOUNCED IN UNION BUDGET 2026?
The Coconut Promotion Scheme focuses on replacing old and non-productive coconut trees with high-yielding varieties to improve farm output and long-term sustainability. It forms part of the government’s broader push for high-value agriculture, which also includes crops such as cashew and cocoa.
By encouraging modern cultivation practices and improving market access, the scheme seeks to enhance farm efficiency while strengthening India’s position as the world’s largest coconut producer.
WHO WILL BENEFIT FROM THE COCONUT PROMOTION SCHEME?
The primary beneficiaries of the scheme are coconut farmers and farming communities across major coconut-producing regions. Coconut cultivation supports nearly 30 million livelihoods in India, including around 10 million farmers, making the crop economically and socially significant.
In addition to farmers, processors and value-chain participants are expected to benefit from improved quality and consistency of raw coconut supply. This includes businesses involved in coconut oil, coconut water, and other coconut-based products.
HOW WILL THE COCONUT PROMOTION SCHEME IMPACT CONSUMERS?
For consumers, the scheme’s impact is expected to be indirect but positive. Higher productivity and better supply chains could help stabilise coconut availability, improve product quality, and enhance access to a wider range of coconut-based goods.
Over time, improved efficiency in production and processing may also help moderate price volatility, benefiting households and industries that rely on coconut products.
FAQs
WILL THE SCHEME AFFECT COCONUT PRICES IN INDIA?
The Coconut Promotion Scheme does not include direct price controls. However, by increasing production and stabilising supply, it may help reduce sharp price fluctuations over the long term.
DOES THE SCHEME PROMOTE COCONUT-BASED VALUE-ADDED PRODUCTS?
While the scheme primarily targets cultivation and productivity, it indirectly supports value-added coconut products. Better quality raw material and improved market linkages can strengthen processing, innovation, and product availability.