Funding for Coconut sector under the 12th Plan

FOR IMMEDIATE RELEASE
Palakkad, Kerala, India, Republic of (Free-Press-Release.com) February 8, 2012 -- An official of the Coconut Development Board, a statutory body set up under an Act of Parliament to develop the crisis ridden industry, that they had suggested augmenting Rs 2,600 Cr as Plan grant during the XII Plan period. In the XI Plan, it was granted Rs 395 Cr. In the X Plan, it got a Plan allotment of Rs 105Cr. In terms of growth, what was the growth rate projected by the CDB and what was released and how did it improve the crisis-ridden industry to growth?

During the current Plan, Rs 395 Cr was granted to the Board to initiate new activities including funds for a pilot project known as Rejuvenating & Replanting the Coconuts in select districts of Kerala namely, Thiruvanathaopuram, Kollam, and Trichur. There is a Technology Up-gradation Scheme to develop technology in the industry including developing new projects through innovation. It was envisaged that the cut coconut shrubs be used for making Coconut furniture or developing them as Particle Boards, which due to control in felling of trees would act as an excellent substitute to Wood. There is a huge demand for wood substitutes.

Tender Coconut Water is a refreshing drink that has large market in the United States. It is marketed as a Sports drink by Pepsi. The market is about $ 1.5 billion, and is likely to see a surge. But in India, we have not been able to exploit the tender Coconut Water industry which has a looming demand.

We must strike a balance between growth of the industry and employment generation. Growth should automatically attract labour. There are no big players in the Coconut segment except some family owned businessmen involved in Coconut Oil. But, the Coconut oil industry which produce less than 1% of the total edible oil in the country is always problem ladden. Its bi-product is Copra which has a Minimum Support Price. Both milling and ball Copra have fixed MSP. But often, the market price falls less than the MSP. De-husked Coconut also has MSP but there are times in the cycle when market prices are lower than the MSP. This phenomenon is characterized as more supply than demand. This is triggered by low buying by the end users on the plea that they have sufficient quality in their inventory. When the price start rising, the demand will simultaneously shoot up. There is a huge demand for Coconuts externally, that around Rs 85 Cr worth of Coconuts were exported through Tuticorin and Nhava Sheva Ports. Virgin Coconut Oil, has been a late comer, which has built huge demands in the domestic market, in the Gulf markets, Europe and America.

The only new product that has a character of a value added product during the last decade has been the activated Carbon which is made from Coconut shell charcoal. Coconut Charcoal is also shipped and fetches around Rs 60 Cr as foreign exchange. The Coconut shell can be utilised for making handicraft items, as well as the strings on the shell are so minute and strong that they can be used along with epoxy polymer which has a world turnover of around $ 150 billion, of which 30% is contributed by China.

When the Board knows that the Coconut industry can be poised to grow as its products can fetch higher value if it is adopted into the value added form. Use of technology and innovation play a major role.
However, by projecting an outlay of Rs 2,600 Cr in the XII Plan, that means Rs 520 Cr in a year, what is the accentuated return that the Board is envisaging except saying enhancement of productivity, production of value added coconut items, increasing exports, integrating farming system.

We needs to make a proper assessment of our resources and wants, and must plan Schemes and projects that will accelerate the process of production and manufacture, which must be linked to market dynamics. If we are able to show that this investment would result in considerable return and employment avenues, with possibility of entry into the foreign markets, only then, our Schemes and outlays get approval. I think, this needs to be yardstick.RoI(Return of Investment) is fundamental principle on which the success of Schemes are evaluated.

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