India's Soaring Coconut Exports

India is third in the world in terms of coconut planting area but first in terms of production and productivity. According to data from Tamil Nadu Agriculture University Coimbatore, India produced 192.47 million nuts of coconut in 2021-22, making up more than 31 per cent of the world's total and producing 9123 nuts per hectare. Coconuts are grown on 2.10 million hectares of land in the country. The number of coconut-based businesses in India is on the rise, which is good news, translating to more options for consumers and more jobs in the current competitive scenario.

- Nitin Konde

The Coconut Development Board (CDB) has provided funding for the construction of 537 new coconut processing units, which will have the ability to handle 3638 million nuts annually once they are fully operational. The export of Indian coconut goods has also seen extraordinary success. There was a growth of over 40.09 per cent in the export of coconut products in 2021-22, with the total amount reaching Rs 3236.83 crore. This figure does not include coir products. Indian coconut exports mostly consist of activated carbon, coconut oil, dry coconut, desiccated coconut, fresh coconut, and virgin coconut oil.

The CDB estimates that exports in FY23 amounted to roughly Rs 3,555 crore, an increase of 9.8 per cent from FY22. Exports, on the other hand, grew by a far more impressive 41 per cent to a total of Rs 3,237 crore in FY22. The export value of activated carbon and coconut oil, which together make up more than 75 per cent, declined during the previous fiscal due to the onset of hostilities between Russia and Ukraine and price fluctuations.

Commenting on the aforementioned situation, M M Abdul Basheer, Managing Director, Indo German Carbons Ltd stated, "Activated carbon is used extensively in Russian industry. Many shipping companies were hesitant to transport goods to Russia because of the conflict with Ukraine. The United States, South Africa, and other countries keep on buying, nevertheless. While our prices are 10 per cent higher than the international market, the quality we provide is unmatched."

Striking the right price balance