Coconut Market Trends in India 2021

Published Jun 21, 2021

India is the largest coconut exporting country globally, with the United Arab Emirates, Malaysia, United Kingdom, United States of America, and Afghanistan as the main exporting countries. During the last few years, many palm growers in India have shifted their focus to coconuts due to the increasing maintenance cost of palm grooves in India. Consequently, coconut production volume in India has increased dramatically, making it the third-largest producer of coconuts in 2019. However, due to the outbreak of COVID-19, there has been a fall in demand as the restaurants remain closed, and restrictions on travel continue.

India is the third-largest coconut producer globally and has increased its share in global coconut production as well. India has a coastline of more than 7,500 kilometers which accounts for more than 90% of the coconuts produced in coastal areas in India as their sandy, or loamy soil is ideal for coconut production. Ideally, they are planted in June and July, and the process of fruit set starts three years after the plantation. In the past decade, coconut production in India has increased by 34.71%, from 10.84 million tonnes in 2010 to 14.82 million tonnes in 2019, and share in global production increased from 18.15% to 23.51%. The country is the largest coconut exporting country globally, with an export value of USD 45 million and a share of 26.57% in the global export market. In 2020, India represented 26.57% of fresh coconut (HS code 080119) exports to different countries worldwide. The main export destinations were the United Arab Emirates, Malaysia, United Kingdom, United States of America, and Afghanistan.

Source: Tridge.

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A large number of palm growers have shifted their focus to growing coconuts due to the increasing maintenance cost of palm grooves in India. Apart from this, increasing awareness of the environmental costs and health concerns associated with palm oil production has further pushed the farmers. On the other hand, coconut trees need much less water and can grow in a broader range of climatic and soil conditions.
Coconuts are consumed fresh from across the country during the summer months to beat the scorching heat. As the temperature began increasing by mid-March, wholesale coconut prices started rising as the demand increased. Despite the lockdown, demand for fresh coconuts for household consumption increased as coconut is also used as an essential food in the treatment of COVID-19.
The lockdown imposed in April 2021 has impacted coconut sales across India due to the closure of restaurants and social distancing restrictions. The farmers in coconut growing areas have harvested tender, which has a shorter shelf life. Restrictions on movement have resulted in very few traders coming in to purchase bulk quantities of coconuts.