Rise in Export Businesses of Coconut Products

There has been a steady rise in the demand of coconut products across the world, thanks to the growing awareness of the benefits associated with them. Coconut products are not limited to desiccated coconut and coconut water. As mentioned on the website of Coconut Development Board of India, the following coconut products are exported from India:

• Coconut Oil for cosmetics
• Coconut Oil for cooking
• Coconut Water
• Neera
• Coconut Flower Syrup
• Coconut Palm Jaggery
• Coconut Palm Sugar
• Coconut Shell Products
• Coconut Wood Products
• Coconut Leaves
• Coir Peat

India, the third highest coconut-yielding country, has grown its export of coconut products by nearly 50% in the year 2016-17. One of the major reasons behind this increase is the surge in coconut export price in other major coconut-producing countries including Indonesia, Philippines and Sri Lanka. The increase has helped fill the gaps in the demand and supply of coconut products.

According to the statistics mentioned in a report published on the economictimes.com in January 2017, "Following rising shipments of coconut oil, desiccated coconut products — copra and fresh coconut — export for the eight months till November reached Rs 1,447 crore, which is nearly the total export of coconut products achieved in 2015-16. Exports stood at Rs 1,450 crore in the last fiscal."

The major contributor to the growth of coconut export is Activated carbon — its export grew by 8 per whereas export of coconut oil grew exponentially by 178%, which amounts to Rs. 319 crore. While copra exports rose three times over at Rs 94 crore, desiccated coconut export increased four times over at Rs 112 crore. There are several reasons why demand for exporters of coco-peat and other coconut products is on the rise:

• India has a competitive edge as the export price of coconut products in the country is comparatively low. For example, Indian coconut costs Rs. 110/kg as coconut exported from Sri-Lanka which costs Rs. 130/ kg. Rise in international prices by 30% led to export of Indian coconut oil in bulk.
• Declining yield from old trees in other countries results in a lower supply of coconut oil in the global market, thereby allowing Indian exporters to meet the burgeoning demand.
• A number of farmers’ co-operative societies harness the best processing technology. Technical expertise, skilled manpower and the right marketing strategies used by the manufactures help in producing large amounts.
• India produces coconut in copious amounts, 13 billion nuts per annum. Vast area spread across 18 states and three Union Territories under varied agro-climatic conditions are used for coconut cultivation.
• Government agencies such as Kerala State Marketing Federation, Kerafed, State Trading Corporation and Karnataka State Marketing Federation are manufacturing and marketing branded coconut oil in differently-sized packets.
• Reputed organizations such as ICAR, CSIR and DRDO dedicated to research and development of coconut products. It is an accepted fact that many varieties having specific nut characteristics.

All in all, coconut cultivation in India and export of coconut products is a profitable deal for all stakeholders.

KK Bhatt starts go4WorldBusiness, which is an online business to business rade portal. He is an international manufacturer, supplier, exporters and connects with others large volume buyers and sellers around the world.