Centre proposes coconut oil in PDS to expand market for growers

Shivraj Singh Chouhan, Union Minister for Agriculture and Farmers’ Welfare , on Saturday said the Coconut Development Board has written to state governments recommending the inclusion of coconut oil in the Public Distribution System (PDS).

Speaking to the media after a meeting with coconut growers and industry representatives, the minister said replacing other edible oils with coconut oil in the PDS could ensure a stable market and better prices for farmers while providing healthier nutritional options to consumers. “If coconut oil is promoted through the PDS, it will benefit farmers and strengthen the coconut sector,” Chouhan said, adding that the Centre will discuss the proposal with state governments.

Chouhan also said the Central government is in the final stages of preparing a dedicated Coconut Promotion Scheme aimed at addressing the long-standing concerns of coconut farmers. The initiative was earlier announced by Finance Minister Nirmala Sitharaman in the Union Budget. According to the minister, the government decided to finalise the scheme only after consulting farmers from major coconut-producing states such as Tamil Nadu, Andhra Pradesh, Kerala, Karnataka and Odisha.

Highlighting the challenges faced by the sector, Chouhan said many coconut plantations are over 60 years old, resulting in declining productivity and vulnerability to pests and diseases. The proposed scheme will focus on introducing high-yielding varieties that can withstand climate change and resist pests such as white fly and diseases like root wilt. He also emphasised biological pest control to preserve export quality and improve market value.

The minister encouraged farmers to adopt integrated farming by utilising space between coconut trees for intercropping with cocoa or pepper, along with activities such as animal husbandry and fisheries to diversify income. The government also plans to promote mechanisation and Farmer Producer Organisations to reduce production costs and enhance value addition.

Farmers and coconut industry groups have largely welcomed the proposal, saying it could ensure stable demand and better prices. However, some economists caution that coconut oil is significantly costlier than most edible oils. Coconut oil is often priced between ₹300 and ₹500 per litre, while commonly used oils such as palm or sunflower cost around ₹120 to ₹170 per litre.

Experts say higher demand for coconut oil could particularly benefit farmers and small processing units in Kerala. Increased demand could raise coconut prices and improve farm incomes, with coconut cultivation currently generating about ₹60,000 to ₹1 lakh profit per acre annually.