Union Finance Minister Nirmala Sitharaman on Sunday announced a Coconut Promotion Scheme in the Union Budget 2026-27, aimed at increasing production, improving productivity and enhancing India’s competitiveness in coconut cultivation.
Presenting the Budget in Parliament, Sitharaman said the scheme would focus on major coconut-growing states and prioritise replacing non-productive and ageing coconut trees with high-yielding saplings.
Focus on productivity and competitiveness
“To further enhance competitiveness in coconut production, I propose a coconut promotion scheme to increase production and enhance productivity through various interventions, including replacing non-productive trees with new saplings or plants of improved varieties,” the Finance Minister said.
The initiative is expected to benefit farmers in states such as Karnataka, Kerala, Tamil Nadu and Andhra Pradesh, where coconut plays a key role in rural livelihoods and agri-based industries.
Cashew and cocoa programme announced
Alongside the coconut initiative, Sitharaman announced a dedicated programme for Indian cashew and cocoa. The aim is to make India self-reliant in raw cashew and coconut production and processing, while also boosting export competitiveness.
The programme seeks to transform Indian cashew and cocoa into premium global brands by 2030, strengthening value chains and farmer incomes.
Sandalwood and orchard rejuvenation
Highlighting sandalwood’s cultural and economic significance, Sitharaman said the Centre would partner with state governments to promote focused cultivation and post-harvest processing. The move is intended to revive and restore the Indian sandalwood ecosystem.
She also announced support for rejuvenating old and low-yielding orchards and expanding high-density cultivation of walnuts, almonds and pine nuts. This programme will focus on enhancing farmer incomes and creating value addition opportunities by engaging rural youth.
Boost for animal husbandry and high-value crops
In the animal husbandry sector, the Finance Minister said the government would promote quality employment in rural and peri-urban areas through a credit-linked subsidy programme. Efforts will also focus on modernising livestock enterprises and building integrated livestock, dairy and poultry value chains.
For high-value agriculture, Sitharaman said crops such as coconut and sandalwood would receive targeted support to diversify farm output, increase productivity and generate new employment opportunities.