An Economic Analysis on Indian Scenario of Coconut Production: Trends and Prospects

Abstract

The purpose of this study is to examine the coconut sector’s growth performance and instability in the Indian context. Since India is the world’s biggest producer of coconuts (22.96 billion nuts), Kerala, Tamil Nadu, Karnataka, and Andhra Pradesh are the states in the country where coconut trees are widely farmed and produced in huge quantities. These states account for over 90 per cent of overall production in the country and contribute around 89 percent of the total land for coconut farming. Area, production, and yield of coconut were collected from CDB based on secondary data from 1985-86 to 2020-21. The study period was divided into pre-TMC (1985-86 to 2000-01) and post-TMC (2001-02 to 2020-21). The study examines growth patterns using the compound growth rate, measures instability using the Coppock’s instability index, and investigates the role of area and yield on production using decomposition analysis. The results revealed that growth of area, production and productivity for major states in India was positive and statistically significant during the period II (post-TMC period) than the period I (pre-TMC period) except area under Kerala (-1.23%). Tamil Nadu and Karnataka reported a high level of instability in coconut production and its productivity during period II. Decomposition analysis shows that the area effect and yield effect play a crucial role in the total change of coconut production among the selected states. But area effect has negative in Kerala, which depicts that area expansion in coconut cultivation is merely nominal for other crops in the state. Hence, greater attention needs to be given to the states where to attract and encourage many new farmers into coconut cultivation by accessing modern technology, quality inputs, marketing and credit facilities under TMC by support of government, CBD and stakeholder.