In Budget 2026, FM Sitharaman has put the humble coconut in the spotlight. She unveiled a special promotion scheme to boost productivity, replace old trees, and raise farmer incomes. The Budget also focuses on high-value crops like cashew, cocoa, and sandalwood, aiming to diversify and modernise India’s agriculture
In her Union Budget 2026‑27 speech, Finance Minister Nirmala Sitharaman surprised many with a focused proposal aimed at boosting one of India’s oldest agricultural products, the humble coconut.
Highlighting the economic importance of the crop, she said, “India is the world’s largest producer of coconuts. About 30 million people, including nearly 10 million farmers, depend on coconuts for their livelihood.”
Sitharaman’s plan goes beyond rhetoric. She announced a Coconut Promotion Scheme designed to increase production and enhance productivity. Speaking in Parliament, she explained: “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 or varieties in major coconut‑growing states.”
Delhi: Union Finance Minister Nirmala Sitharaman says, “…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… pic.twitter.com/KWGEwF7sZu
— IANS (@ians_india) February 1, 2026
The scheme aims to modernise farming methods for this staple crop and support farmers who depend on it, particularly in southern coastal states. It reflects the government’s wider emphasis on agricultural diversification and income growth for rural communities.
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Assisting allied crops and exports
Sitharaman didn’t stop with coconuts.
The Budget includes dedicated programmes for Indian cashew and cocoa, aimed at making India more self‑reliant in raw material production and processing. The goal is to enhance export competitiveness and transform Indian cashew and cocoa into premium global brands by 2030.
The focus on farm income also extends to other high‑value crops including sandalwood and nuts like almonds, walnuts and pine nuts in hilly regions.
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This coconut‑centric push fits into a broader framework in the Budget that seeks to diversify farm output, increase productivity, and create entrepreneurial opportunities for farmers, especially small and marginal producers. The interventions span from replacing less productive trees with new saplings to fostering youth engagement in rural economies.
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