Finance Minister Nirmala Sitharaman on Sunday announced a Coconut Promotion Scheme while presenting the Union Budget for 2026-27 in the Lok Sabha, marking a targeted intervention for coconut-growing regions and plantation crops.

The announcement comes as part of a wider budgetary focus on promoting agricultural products such as coconuts, cashews and cocoa.

Coconut promotion scheme to improve productivity and market access

The Coconut Promotion Scheme is proposed with the objective of improving competitiveness in coconut production. The initiative is expected to support farmers’ livelihoods by enhancing productivity and facilitating better access to markets in coconut-producing areas.

Southern states likely to gain most from the initiative

The move is expected to provide a boost to coconut-growing states, particularly in southern India, where the crop plays a vital role in the regional economy.

Coconut is central to South India’s economy. During 2023–24, coconut cultivation covered nearly two million hectares across four southern states. Kerala accounted for the largest area with 7.65 lakh hectares (0.77 million ha), followed by Karnataka with 5.64 lakh hectares (0.56 million ha), Tamil Nadu with 4.93 lakh hectares (0.49 million ha) and Andhra Pradesh with 1.07 lakh hectares (0.11 million ha).

According to data from the Coconut Development Board, these four states together contribute more than 80% of India’s total coconut-growing area.