Union Finance Minister Nirmala Sitharaman on Sunday announced a Coconut Promotion Scheme aimed at increasing production and improving productivity to strengthen India’s competitiveness in coconut cultivation.
Presenting the Union Budget 2026-27, Sitharaman said the scheme will focus on major coconut-growing states and include interventions such as replacing old and non-productive trees with new, high-yielding saplings and improved varieties.
"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 varieties in major coconut-growing states," Sitharaman said.
The finance minister also announced a dedicated programme for Indian cashew and cocoa, with the objective of making India self-reliant in raw cashew and cocoa production and processing, while enhancing export competitiveness.
"A dedicated program is proposed for Indian cashew and cocoa to make India self-reliant in raw cashew and coconut production and processing, enhance export competitiveness and transform Indian cashew and Indian cocoa into premium global brands by 2030," Sitharaman said.
Sandalwood cultivation
Highlighting the cultural significance of sandalwood, Sitharaman said it is closely linked to India's social and cultural heritage. She announced that the Centre will partner with state governments to promote focused cultivation and post-harvest processing to revive and restore the Indian sandalwood ecosystem.
"Sandalwood is closely linked to India's social and cultural heritage. Our government will partner with state governments to promote focused cultivation and post-harvest processing to restore the glory of the Indian sandalwood ecosystem," Sitharaman said.
In addition, the government will support a dedicated programme to rejuvenate old, low-yielding orchards and expand high-density cultivation of walnuts, almonds, and pine nuts.
"To rejuvenate old, low-yielding orchards and expand high-density cultivation of walnuts, almonds, and pine nuts, we will support a dedicated program to enhance farmer incomes and in bringing value addition by engaging youth," she added.
Animal husbandry sector
In the animal husbandry sector, Sitharaman said the government will focus on creating quality employment opportunities in rural and peri-urban areas through a credit-linked subsidy programme. Efforts will also be made to scale up and modernise livestock enterprises, develop integrated livestock, dairy, and poultry value chains, and encourage the formation of livestock farmer producer organisations (FPOs).
For high-value agriculture, the finance minister said targeted support will be extended to crops such as coconut and sandalwood to diversify farm output, improve productivity, boost farm incomes, and generate new employment opportunities.
