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Coconut Product Diversification and Marketing in India

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Coconut Product Diversification and Marketing in India COCONUT PRODUCT DIVERSIFICATION AND MARKETING IN INDIA Paramjit Singh* Abstract This paper highlights the various efforts taken towards product diversification in the country due to uncertain income from traditional coconut products. The paper stated that the decline in prices of coconut and increased availability of cheaper substitute oil, both in edible and non-edible segments has reduced income of farmers. It is explained that incidence of eriophyid mite of coconut and drought condition suppressed the productivity and further eroded farm income. In the situation of falling prices during 2000 and 2001, Govt, agencies extensively resorted to procurement of copra without tangible impact on prices. This situation necessitated shift in strategy by giving emphasis on product diversification and by­ product utilization to reduce dependence on coconut oil for utilization of coconut Aggressive generic market promotion of coconut products was undertaken by Coconut Development Board through print and electronic media. The strategic marketing approach was adopted by the Board by segmenting potential market in non-traditional non-producing areas, targeting the identified market through a series of coconut festivals organized in important cities and by highlighting health, nutritional and medicinal properties. Intensive farming systems are promoted with emphasis on recycling coconut organic waste, organic manuring, vermin- compost and integrated pest and disease management with least use of chemicals. All these strategies have had positive impact as reflected in the current scenario with a number of new coconut products available in the market and increased utilization of coconut for uses other than oil milling. The domestic prices of coconut oil and copra has also witnessed a sharp turn around beginning 2002 and sustained the rising trend all throughout the year. 1. Introduction Coconut, an unique gift of nature to the mankind, interwoven with cultural heritage, provides livelihood support to over 10 million people in India through on-farm and off-farm employment and income generation. It being a versatile crop pervades religious, social and cultural life of people of India. Coconut provides health food, nutritional drink and also raw material for a number of processing industries. In India, coconut is cultivated in the island ecosystem mainly alongside the East and West Coasts in the states of Kerala, Karnataka. Andhra Pradesh, Tamil Nadu. Orissa. West Bengal. Goa and the Islands of Lakshadweep and Andaman & Nicobars. India produces 12,822 million nuts annually from an area of 1.89 million hectares with productivity level of 6776 nuts per ha. The contribution of coconut to the GDP of the country is over Rs. 70,000 million annually which is 2% of the contribution of agriculture and allied sector. Coconut contributes 6% to the vegetable oil pool of India. It is a source of empowerment to women. There has been substantial improvement in production and productivity of coconuts in the past as a result of research and developmental efforts and adoption of viable technologies by the farmers. * Deputy Commissioner (Horticulture). Deportment & Cooperation. Ministry o f Agriculture. Government o f India The liberalization and globalization of Indian economy, however, have put pressure on the coconut industry to become competitive. Even though, only 39% of the coconuts produced in the country are used for production of copra and coconut oil, the prices of coconut are largely influenced by domestic and international price behaviour of these products. The decline in prices mainly due to increased availability of cheaper substitute oils have reduced income of the coconut farmers. The incidence of coconut mite and drought conditions have suppressed the productivity and further eroded farm income. The stress situations also aggravates the problem of root wilt disease in Kerala which is caused by phytoplasma which is non-lethal and slow debilitating. The strategies adopted for management of eriophyid mite of coconut has succeeded in the control of mite in the States where it was noticed first. In fact, the incidence of the pest has been reduced. The promotion of intensified farming systems in coconut gardens with compatible crops suitable for the region and with ready market helped to enhance the income from unit area. New coconut products in attractive consumer packs and ready to use convenient coconut foods have been developed. Coconut water concentrate, coconut milk, coconut shreddings and coconut shell products, especially activated carbon are now in the export market. The targeted marketing of coconut products, especially in areas other than producing areas with emphasis on health aspects has resulted in increased demand for these products especially packed tender coconut water. The increased use of coconuts for making products other than coconut oil has reduced dependence of coconut economy on coconut oil and improved sustainability of coconut cultivation. In order to make coconut farming profitable, viable and sustainable, measures such as. integration of coconut cultivations with profitable enterprises, farm level processing, production of organically cultivated coconut, product diversifications and value addition along with projection of coconut as a health food and coconut water as nutritious drink, were adopted with positive impact reflected in current coconut scenario. This paper discusses status of Indian Coconut industry with special reference to product diversification and marketing of coconut products and future strategies. Table 1. Estimates of area, production and productivity of Coconut in India 2001- 2002 Area Production States/Union Territories Productivity Percent '000 Percent Million (Nuts/ha) Hectares | Share nuts Share 1 2 3 4 5 6 Andhra Pradesh 1 0 4 .0 5 .5 0 1129.1 8.8 1 10857 A ssa m 2 1 .1 1.12 1 6 3 .6 1.2 8 79 5 4 G oa 2 5 .0 1.3 2 125.1 0 .9 8 5 0 0 4 K a rn a ta k a 3 7 3 .7 19.75 1 5 2 3 .4 1 1 .8 8 4 0 7 6 K e ra la 9 3 9 .5 4 9 .6 5 5 7 4 4 .0 4 4 .8 0 6 1 1 4 Maharashtra 16 .8 0 .8 9 1 9 3 .8 1.51 11 536 O ris s a 17 .3 0.9 1 142.4 1.1 I 8231 T a m il N a d u 3 3 5 .8 17.75 3 2 9 3 .6 2 5 .6 9 9 8 0 8 T r ip u r a 3 .3 0 .1 7 7 .0 0 .0 5 2121 West Bengal 2 5 .6 1.3 5 3 3 1 .6 2 .5 9 12953 A & N Islands 2 5 .2 1.33 8 9 .7 0 .7 0 3 5 6 0 Lakshadweep 2 .7 0 .1 4 53 .1 0 .4 1 19667 Pondicherry 2 .3 0 .1 2 2 5 .3 0 .2 0 11 000 All India 1892.3 1 100.00 12821.7 100.00 6776 Source: Directorate of Economics & Statistics, Ministry of Agriculture, Govt, o f India. 9 2. Area, Production and Productivity In India, coconut is mainly cultivated in the coastal eco-system in the states of Kerala, Karnataka, Andhra Pradesh, Tamil Nadu, Orissa and West Bengal. The production of coconuts in the country is 12822 million nuts from an area of 1.89 million ha. with productivity of 6776 nuts/ha. (Table. 1). Kerala, Karnataka, Andhra Pradesh, Tamil Nadu accounts for 92.6 percent of the total area under coconut cultivation and 91.2 percent of total production. Kerala is the single largest coconut producing state with 49.6 percent share in area and 44.8 percent production. The crop has also been introduced in non-traditional but favourable locations in Central, North and North-Eastern regions in the country. Fig. 1. Share of major coconut growing states in area and production of coconut (2001-2002) in India The area under coconut was 1.08 million hectare in 1980 which increased to 1.89 million hectares by the year 2001-2002. Similarly, the production has increased from 5942 million nuts to 12822 million nuts over the same period. The increase in area, production and productivity during the decade 1981-91 was comparatively higher than that of the decade 1990-2000. Coconut Development Board on its inception in 1981 gave emphasis on improving production and productivity and creation of strong production base by planting with high yielding varieties and hybrids which was reflected during the decade. In the later decade the emphasis shifted to developing technologies for product diversification and by­ product utilization where India was lagging behind. 3. Demand Projections There has been a slow growth in demand for coconuts and its products over the past few years. It was because of ill-founded campaign against the edible uses of coconut oil on health grounds and substitution by cheaper oils in traditional end-use sectors. The concerted efforts made by Coconut Development Board highlighting the health benefits of coconut oil, coconut kernel and tender coconut, the demand for coconut and its products is expected to expand in the coming years. The national and international efforts projecting intrinsic qualities of coconut oil have helped to restore the original position of coconut oil both in edible and non-edible sectors. The efforts to increase productivity have reduced cost of production and intercropping have increased income to the farmers per unit area. Efforts are on to widen the demand of Indian coconuts in domestic as well as export markets. 10' Coconuts and coconut products especially copra are used in all social and religious functions and also culinary purposes throughout the country irrespective of its major production being mainly confined to coastal belts. Copra is mainly processed for coconut oil. In northern India, people use it for edible purpose in sweet dishes as dry fruit and while in Western Coast, it is the inseparable part of their daily food in different forms.
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