Coconut exports set to touch Rs 600 cr as overseas demand picks up

Exports of coconut and coconut-based products will cross Rs 600 crore in 2010 – 11 with demand for these picking up in traditional and emerging markets.

Coconut exports grew by 50 per cent notching up Rs 150 crore in the first quarter of current fiscal as against Rs 100 crore reported during the same period of last year. This year, coconut product exports are expected to touch over 100 countries compared with 84 countries last financial year.

According to CV Ananda Bose, chairman, Coconut Development Board (CDB), packaged tender coconut water is a thirst drink in many developed countries such as the USA, EU and in the Asean region. There is an emerging market for packaged tender coconut water in Latin America and the Caribbean, Canada and Africa.

Malaysia, Singapore, Vietnam and Thailand are among the leading exporters of canned tender coconut water. They are dominating the American and European markets. Indian exporters are trying to pack the coconut water in aluminum cans which will make them competitive and increase their presence in the emerging markets across the world, Bose said.

Providing a boost to the coconut export sector, packaged tender coconut water has been included in the Focus Product Scheme for export promotion and has been made eligible for two per cent incentive in the recently unveiled annual Foreign Trade Policy. He said that the technology for preserving tender coconut water had been developed by Defence Food Research Laboratory (Mysore) in collaboration with the board.

The incentives given to packaged tender coconut sector would boost exports of other coconut-based products and bring the coconut farmers under 'inclusive growth,' Bose said. Coconut shell work has also been included for special benefit under Focus Product Scheme which will have incentive on par with packaged tender coconut water, he added.

Coconut shell products are in wide demand as ice cream cups, birds’ nests and cookery substitutes. Coconut products like coconut oil, desiccated coconut, coconut hookah, coconut oil cake and coconut shell have already brought under Vishesh Krishi and Gramin Udyog Yojana (VKGUY) and copra under Focus product scheme.

Coconut products are also eligible for one per cent to 6.3 per cent duty benefits while coconut oil is entitled to 1.5 per cent incentive under the Duty Entitlement Pass Book (DEPB) scheme.