Why Sitharaman’s Betting Big On Coconuts In Budget 2026? Dive Into Magic Of South’s Curries & North’s Laddoo Crunch

While presenting the Union Budget 2026, Finance Minister Nirmala Sitharaman said the government plans to strengthen India’s coconut sector by launching a dedicated coconut promotion scheme. The focus will be on increasing output and productivity through steps such as replacing old, low-yield trees with new, high-quality saplings in major coconut-growing states.

The Finance Minister also announced a focused programme for cashew and cocoa. Through this initiative, she aims at making India self-reliant in raw cashew and coconut production and processing, improving export competitiveness and building Indian cashew and cocoa into globally recognised premium brands by 2030.

The renewed policy highlights coconut’s unique place in India, where it is not only a major farm crop but also a daily ingredient contributing to regional cuisines, health practices and household consumption. FYI, India is among the world’s top coconut producers. In 2023–24, the country produced around 15.3 million metric tons across 2.33 million hectares. With improved irrigation and better farm practices, production is expected to rise to about 17.6 million metric tons by 2026.

Top Coconut-Producing States: Karnataka currently leads coconut production with about 6,151 million nuts in 2024–25. It is followed by Tamil Nadu at 6,091 million nuts. Together, these two states account for more than half of India’s total output. Kerala, Andhra Pradesh and Telangana also contribute significantly. But Karnataka has overtaken Kerala due to sustained policy support and technology-driven farming.

Productivity And Impact On Livelihood: India’s national coconut productivity averages between 9,687 and 9,871 nuts per hectare, placing it among the highest in the world. Southern states dominate production and form the backbone of the coconut economy. The sector supports the livelihoods of nearly 12 million people and fuels allied industries such as coir, coconut oil and food processing.

Health Benefits Of Coconut: Coconuts are valued for their strong nutritional profile. They are rich in dietary fibre, which helps improve digestion and supports weight management by increasing satiety. Medium-chain triglycerides provide quick energy and improve stamina. Potassium found in coconut helps regulate blood pressure while antioxidants slow ageing. Additionally, natural antimicrobial properties support immunity and oral health.

Key Coconut Products: Coconut water is widely consumed for hydration. On the other hand, coconut oil is used for cooking, skincare and hair care. Copra forms the base for oil extraction. Value-added products include coconut milk, cream, neera, jaggery and vinegar. The demand for coconut is rising sharply due to vegan, keto and plant-based diets.

To promote coconut promotion, it is important to focus on market education on health benefits and urban retail expansion. Social media campaigns highlighting coconut’s versatility in food and beauty routines can also increase the demand. Government initiatives like One District One Product can also be implemented to boost local processing and value addition, aligning coconut products with global health and plant-based consumption trends.

In South India, coconut is a daily staple instead of an occasional ingredient. Kerala uses it extensively in dishes like avial, meen kuzhambu and erissery. Tamil Nadu relies on coconut for the preparation of thengai thuvaiyal, vegetable kootu and coconut rice, especially during festivals and temple meals. Across coastal regions, coconut chutney remains inseparable from idli, dosa and vada, flavoured simply with mustard, curry leaves and urad dal. Coastal dishes like chemeen curry use coconut gravy to balance spice and seafood.

In North India, coconut is used more selectively. It features prominently in sweets like nariyal ki barfi and kopra pak, especially during festivals. Coconut milk enriches gravies such as navratan korma and some paneer dishes. Tender coconut water is popular in summer markets while coconut oil remains essential in hair care rituals.