With 31.45% of the world’s total production during 2021-22, India is the largest coconut producer with 19,247 million nuts. Coconut by itself contributes around Rs. 307,498 million to the country’s GDP while also providing livelihood opportunities to more than 12 million people. The production of coconut at a national level for 2021-22 was at 9,123 nuts per hectare and is one of the highest in the world. The production is primarily from Kerala, Karnataka, and Tamil Nadu and Andhra Pradesh, followed by West Bengal, Orissa and Gujarat.
Between 2015-2016 and 2021-2022, the total coconut exports from India grew at a CAGR of 13%. During 2021-22, the coconut exports of India crossed Rs.3,236.83 crore mark, an increase of 41% from the previous year. There are about 63 top exporting ports in India that trade coconut and related products to its export destinations.
This strong export growth is creating more employment for production of various coconut-based products such as coconut chips, coconut milk, coconut sugar, coconut water, tender coconut water, coconut honey, coconut jaggery, coconut milkshake, coconut snacks, virgin coconut oil, coconut natural cream, etc., that are seeing high export demand.
The major importers of coconut from India are Vietnam, the UAE, Bangladesh, Malaysia and USA. For 2020-21, the amount of coconut exports to these top 5 countries are valued at Vietnam (US$ 29.6 million), UAE (US$ 16.61 million), Bangladesh (US$ 14.63 million), Malaysia (US$ 11.27 million), and USA (US$ 5.84 million), according for 66% of the exports from India. Vietnam is the major importer with a share of 25% followed by UAE and Bangladesh making for 14% and 12% of India’s coconut exports, respectively.
The First Steps Towards A Coconut Export Business From India
This lucrative business presents many opportunities from coconut body oils, coconut powder, coconut cooking oils, coconut candies, coconut pasteurized milk, and confectioneries. The oversaturated market here with low demand for produce creates an avenue to explore other markets for coconut product exportation. With the coconut export business ripe to make the most of compared to the local market, here are a some best practices to get started:
Market Research – Understand the target market, its potential, competition, and the demand for coconut products. Pick a market with a high demand, ensure consumers in the space can afford what you offer
Legal Requirement – As the market is in a different country, regulations may change, so ensure the business is not violating any local laws do get legal assistance in understanding laws set for the coconut business in the region on taxation, export laws and others.
Shipping – Understand which shipment plan will best suit coconut products. For perishable products, you can use air transport and other faster means of transport.
Documents Required to Start Coconut Export from India
- Commercial invoice
- Consular invoice
- Bill of lading
- Certificate of origin
- Dock receipt and warehouse receipt
- Inspection certification
- Destination control statement
- Export license
- Insurance certificate
- Export packing list
Step-by-Step Process for Export of Coconut From India
Step 1 – Export Registration: One-time registration with the Indian government for export license.
Step 2 – Customs: Procedure to ensure that coconut products are freely accessible within the importing country.
Step 3 – Shipment and order fulfilment: Establish required supply chain with suitable suppliers and sellers to fulfil orders.
Together with the Ministry of Agriculture and Farmers Welfare, the Coconut Board of India has implemented many programs to develop the coconut industry. The schemes include production and distribution of quality planting material, expansion of area under cultivation, technology demonstration and improvement, replanting and rejuvenation, support exporters for participating in international event, training for market promotion of export specific products, developing market for coconut products globally by creating opportunities. Other schemes such as Coconut Palm Insurance Mission and Kera Suraksha Insurance Scheme help protect the farmers from natural calamities and losses.
During the year 2021-22, the Government of India provided financial assistance to the tune of Rs. 801 million for covering a fresh area of 4,078 hectare demonstration plots for productivity improvement. This includes establishing six new coconut nurseries and a coconut nucleus seed garden and six new coconut processing units for value-added products like virgin coconut oil, activated carbon and all ball copra, spray dried coconut powder.
End-to-end trade management with Trade Desk
Trade Desk allows Ninja Global to capture coconut import demands and match them with relevant exporters. By matching exporters to demands, ensuring timely payment after goods reach their destination, efficient task management, including document requests, status checks, and order creation, it streamlines the entire trading process.
Making it easy with PaySure
Ninja Global understands that for coconut exporters, ensuring timely payments from import partners is vital for business growth. Identifying trustworthy importers who honor payment obligations can be challenging and our PaySure program addresses this, to help exporters connect with reliable importers. With PaySure, Ninja Global strives to help exporters grow their businesses and overcome the challenges of the market.
By enrolling in PaySure, a coconut exporter can:
- Secure export collections and avoid payment defaults
- Become a certified PaySure exporter to increase the chances of a Freight Forwarder offering credit
- Gain greater flexibility in managing cash flow and planning business activities
- Benefit from reduced payment risk and more reliable transactions
The coconut export business is bustling offering a great opportunity to share your quality produce across the globe and Ninja Global and our PaySure solution is here to guide you in this journey. Reach out to us anytime for queries, suggestions or more information.