COCONUT INDUSTRY

The coconut considered being the most important and useful of the tropical palms has
been in cultivation in India from time immemorial. It perhaps yields more products of use to
mankind than any other tree. Each and every part of the coconut is used in India in one way or
other and the classics of India have rightly eulogized it as Kalpavriksha (the all giving tree)
owing to the multifarious used of various palm parts and products in our daily life. Even though
the coconut is known both as food and oil seed crop, it has also assumed significance as a
beverage and fiber crop in our country and the days are not far away when the coconut will be
the main source of timber for various constructions in coconut growing areas in our country.

Antiquity of coconut in India is well established from its mention in Kishkindha Kanda
and Aranya Kanda in Valmiki Ramayana (3rd century BC). There are three different views
regarding the origin of coconut. According to the first view, the palm evolved from a stock
which gave rise to the American members of the genus cocoas and originated in the northern end
of the Andes in Tropical America from where it was taken into the Pacific. The second view is
that from a place of origin on the coasts of Central America, the equatorial currents of the sea
took it to the Pacific Island. According to the third view, which is more generally accepted it is
assumed to have originated in the South Asia or in the Pacific from where it reaches America.
References have been made on coconut in Reghuvamsa of Kalidasa and Sangam literature,
which testify the antiquity of coconut in India. But its origin in India remains disputed. Marco
polo, the famous European traveler who visited India 13th century called coconut the ‘Indian
nut’ and the logic for such a reference needs investigations by historians.

ECONOMIC IMPORTANCE

The importance of the coconut palm can be gauged from the fact that it is grown in more
than 80 countries of the world and in 17 states and three union territories in India. The fruit of the
coconut is considered auspicious and finds place in most of the religious ceremonies in all the
states irrespective of whether the palm is grown locally or not. This it self is testimony to the
importance of the coconut palm in India culture. Though coconut cultivation was originally
confined to the coastal and deltaic tracts, it is now grown even in the interior area in many states.
Coconut occupies a unique position in the socio-economic structure of the country and it is
intimately related to the prosperity of a vast multitude of small and marginal growers especially
along the coastal states. With an area of 1.795 million ha and a production of 13.968 million
nuts, coconut contributes over Rs.7000 crores annually to the GDP of the country. Copra the
dried Kernel of coconut is the richest source of edible oil and the contribution of the crop to the
total edible oil pool in India is around 6 percent. The raw material for coir industry is derived
from coconut husk and the country earns foreign exchange to the tune of Rs.239 crores by way
of export of coir and products.

About million people in the country are engaged in coconut cultivation, processing,
marketing and trade related activities. In the coastal tracts most of the people depend on coconut
for their sustenance and to many people depend on the sole income, since the coconut garden
accommodates most of the fruits and vegetable crops besides animal husbandry, the coconut
based farming system satisfies the day to day need of a family in a state like Kerala, besides
providing a large quantify of biomass to satisfy the fuel requirement of a small family. Coconut
palm therefore assumes importance as a renewable energy source.

As a result of diversification in the utilization of coconut through the development of new

products such as coconut cream, spray dried coconut milk powder, preserved and packed tender
coconut water based vinegar, coconut has become important as an agro-based raw material for
many industries. Besides, coconut shell, a by-product of coconut processing industry, is a raw
material of commercial importance, which is used for the manufacture of shell charcoal,
activated carbon, ice cream cups, shell powder and handicraft. Coconut shell is also widely used
as fuel in rural households and for copra kilns, it is also as fuel in limekilns, brick kilns bakeries
and of late used as a boiler fuel. Charcoal made from coconut shell is used in smothery and
laundry. Well-powdered coconut shell charcoal was used as a dentifrice in olden times.

Toddy trapping is one of the important industries connected with coconut farm in
Erodeand Goa. Fermented toddy is an intoxicant drink, which is popular in the West coast of
India. Coco-fenny, a commercial barrack is manufactured from coconut toddy in many coconuts
growing areas in the country especially in Lakshadweep. Coconut wood is used for various
purposes in the construction of houses and for mankind furniture. It is also used to manufacture
various handicrafts of aesthetic value.
FORMATION OF THE COCONUT DEVELOPMENT BOARD

An autonomous body with statutory powers was however felt imperative and the farmers
from the major growing states especially from Erodeconsistently represented before the
Government of India for setting of such an organisation. The systematic functioning of other
Commodity Boards and the popularity gained by them induced the coconut farmers to clamor for
the formation of a Coconut Board with statutory powers. As a result of this demand, the
Government of India under an act of the Parliament (CDB Act 1979) constituted the Coconut
Development Board ceased to exist there after. The staff and infrastructure of the Directorate
were transferred to the Coconut Development Board.

The Coconut Development Board started implementation of the development programs

from 1982-1983, which was the third year of the Sixth Five Year plan period. The major source
of funds for the Coconut Development Board was the cases on milling copra, which was
subsequently abolished in 1986. Since then the Board has been depending on the budgetary grant
received from the Government of India for all its activities.

CONTRIBUTION OF THE COCONUT DEVELOPMENT

BOARD THE COCONUT INDUSTRY

The development programmers of coconut received more attention after the formation of
the Board. The major functions of the Board interalia include adopting measures for the
development of coconut industry, recommending measures for improving marketing of coconut
and its products, regulating import and export of coconut and its products, adopting measures for
assisting coconut growers to get incentive prices for coconut and its products, providing
financial, processing and marketing of coconut fixing grade specifications and standards of
coconut and its products etc.

With the formation of the Board the development programmes for coconut were given
new dimensions, by identifying thrust areas where efforts were to be concentrated. The decade
prior to the formation of the Coconut Development Board witnessed a declining trend in
production and productivity, with the area under the crop remaining almost stagnant. Fast spread
of the root-with disease in the major coconut growing state of Erodefurther aggravated the
coconut situation. The first and the foremost objective identified by the Board were therefore to
create a sizeable production potential for stepping for product diversification and by product
utilization and streamlining the marketing system of coconut and its products.

Expansion of area under suitable regions of the states was given top priority as a major
development programme of the Board. Apart from traditional belts, the crop was introduced
successfully in the non-traditional belts of the country, like Bastar in Madhya Pradesh, Purnea
and Saharsa in Bihar, and in the states of Tripura, Arunachal Pradesh and Nagaland. With the
implementation of the subsidy programme for the past 16-year, an additional area of more than
82500 ha has been brought under coconut. This programme received encouraging response from
the earning community especially from the non-traditional belt. The programme implemented at
various stages contributed much to the production grant as well. The present highest production
of 13968 million nuts was attend from a base level production of 5807 million nuts recorded at
the time of formation of the coconut development board.

The productivity improvement programmes implemented by the board could make

favorable impact in stepping of the productivity too at the all India level, by reversing the
negative trend productivity. As on today India stands in the forefront in coconut productivity in
the world with a record of 7777 nuts per ha. This was as low as 4980 nuts during 1983.

Death of quality planting material was the measure lacuna in the production and
productivity improvement programme. The lacuna was solved great extent by the production and
distribution of good quality seeding through the establishment of demonstration seed production
farm and coconut nurseries in different region in the country. The board also assisted the non-
traditional trades in the procurement of quality seed nuts for their nursery programmes.

TECHNOLOGY DEVELOPMENT ON POST HARVEST PROCESSING

When the coconut development board came into existence most harvest processing was
in infancy and was confined to traditional copra processing and oil milling in the country.
Development of technology for product utilization within the country itself was therefore
identified as the measure thrust area and the board has been successful to a great extent. Coconut
development board could develop technology with the help of institutions like CFTRI, BFRL
and though its own laboratory for products like coconut cream, coconut milk powder, vinegar
from mature coconut water and noted-coco.

To promote marketing of coconut and its products sale outlets were opened in different
traditional and non-traditional areas in order to create awareness of coconut products among the
people.

COCONUT PRODUCTS AND INDUSTRIES

Coconut farm forms an important component in the socio-economic and cultural life of
every Indian household. Coconut palm provide a large sustainable resource for food fuel, feed,
energy, timber, fiber and numerous other products in addition to the wholesome and refreshing
drink of the tender nut. The dried kernel of the mature nut yield oil which is used for edible and
industrial purposes nearly 60% of the coconut production in the country is devoted for domestic
edible use, drinking purposes tender nut and religious use. This itself is an ample testimony for
its importance as a food crop. Coconut is also consumed for culinary purposes in India and
Srilanka and as processed food in several Asia-pacific countries. The husk of the mature nut
provides fiber use for making coir and coir products. The shell is an important source of fuel in
rural household. The trunk of the coconut palm provides timber for the furniture and handicraft
items. The least provides material for the construction thatched sheds and for use as fuel among
the measure coconut growing country India rank first in the production of coconuts, with a total
production of 13968 million nuts covering area of 1.795 million hectares coconut sector
contributes to the economic development of the country in various ways. It provides valuable
foreign exchange to the turn of Rs. 250 crores through the export of coir and coir products, a
wide tax base for collection of government revenue and abundant source of raw material for
down stream industrial development. Coconut cultivation and industry in India provides an
income to more that 10 million families for their livelihood besides contributing towards the
edible oil output in the country. Although India has made substantial contribution towards
coconut production, the pace of development in the post harvest processing sector has been
rather slow compare to other coconut country such as Philippines, Indonesia, Sri Lanka, Thailand
and Malaysia. The coconut processing in India is currently confined to copra making, oil milling
and manufacturing of coir and coir products. The coconut industry survives mainly on coconut
oil which experiences wide and erratic price fluctuation from time to time. Manufacture of
desiccated coconut and coconut shell based handicrafts are the only other industries outside the
traditional lines, which could show their presence felt to some extent. While a few units mainly
in Tamilnadu and Karnataka are engaged in the manufacture of shell power, shell charcoal and
shell based activated carbon, these products are yet to get a strong footing in the by-product
utilization have been very much limited. Lack of modern technologies within the country for
large-scale manufacture of value added coconut products are one of major handicaps for the
retarded growth of coconut industry. Whatever little efforts have been made in the existing
product development area, it was due to the initiatives of the Technology Development Center
(TDC) under the Coconut Development Board. This center conducts techno-economic feasibility
studies and support technological research to develop various technologies for the manufacture
of value added products from coconut. The board has been able to develop various technologies
for the manufacture of value added products from coconut. The board has been able to develop
technologies for the presentation and packaging of coconut cream, preservation of tender
coconut water in manufacture of spray dried coconut mild powder and coconut vinegar
production from natured coconut water. The board has also set up a pilot Testing cum
Demonstration center under the T.D.C. in order to carry out pilot testing of the technologies
developed in the coconut-processing sector so as to ascertain their commercial feasibility.

COPRA MAKING

Copra making skill continues to be a traditional labour oriented small-scale industry. The
industry is mainly confined to the Southern region comprising the states of Erodeand Tamilnadu
and the Union territories of Lakshadweep and Andaman and Nicobar Islands. Copra is available
in two different forms - edible and milling copra. Edible copra is of high quality and is made
both in the form of cups and balls. Milling copra is mostly in the form of cups and to a very
small extent in the form of chips. The milling copra production in India varies annually between
600-650 thousand tonnes. There are about 12,000 copra-making units spread over the southern
states, of which about two third are concentrated in the state of Erodealone. Most of these units
are resorting to the traditional sun drying method for making copra. Only a few of them are
adopting method like indirect hot air drying and waste heat recovery system. The edible copra
productions is mainly concentrated in Karnataka, Erodeand to a small extent in Andhra Pradesh
production of edible copra is mainly in the unorganized sector and is estimated to be about 1.35
lakh tonnes annually. Edible cup copra is produced mainly in Lakshadweep and two centers in
Kerala. It is used as dry fruit and also in the preparation of sweets and bakeries. Edible copra in
Karnataka is mainly produced in the form of balls and markets through the regulated markets. It
is mainly traded in distant markets such as Bombay, Pune, Delhi, Ahmedabad, Himachal
Pradesh, Assam and Rajasthan. Ball copra in Andhra Pradesh is traded in partially dehusked
form and such as, keeping quality at this copra is more than one year. In Erodeedible ball copra
production and assembling markets are in Vadakara and Tamil nadu. Karolin Erodes the main
center for edible cup copra, where the best quality white colored copra is sorted from the bulk
milking copra and marketed as edible cop copra. Edible copra always commands a premium
price over milling copra, the premium being 35 to 40 percent in the case of ball copra and 15 to
25 percent in the case of cup copra.

COCONUT OIL EXTRACTION

Coconut oil extraction has remained a traditional industry in the processing sector. The
price of coconut continues to be dependent on the price of the coconut oil. Coconut oil is
produced in India mainly by three methods, namely rotaries, the oil expellers and ‘chekkus’, the
expellers dominating the scene. There are about 4,50,000 tonnes of oil annually of which 40
percent goes for edible purpose and the remaining for industrial applications like soap making
and paints etc. Most of the large scale industries market their products in attractive pouches and
bottles, which have ready acceptance amongst the urban consumers. The small-scale units
mainly sell their products in loose form. Oil cake, the by-products obtained during crushing of
copra forms a major ingredient for cattle and poultry feeds. Also a sizable quantity is diverted to
solvent extraction units for oil extraction for industrial purpose. Oil milling and allied industries
provide regular employment to more than 1000 persons. Coconut oil in small packs are
becoming more and more popular among the consumers, especially in the urban areas. Taking in
to account the increasing demand for small packs, there is a stiff competition in the market. Oil
marketed in small packs is of superior quality owing to its low content of free fatty acids and
being micro-filtered. Also the airtight sealing ensures elimination of contamination and
adulterant to the minimum possible extent. Today there is about 50 brands available in the
market. These small packs are priced at 50 percent more than bulk packs.

COIR
 The coir industry in India is an important cottage industry of great economic significance
especially for the rural sector providing employment to half of million people. About two
decades ago the activities of the coir industry was confined to the white coir fibre sector.
However, the brown coir fibre has entered in to the market in a big way. The annual production
of coir fibre in the country is estimated at 2,50,300 tonnes out of which 1,22,000 tonnes in white
fibre and the rest 1,23,300 tonnes in brown fibre.