Coconut oil manufacturing business in India - emerging in a big way (2023)

Coconut oil manufacturing business in India - emerging in a big way (1)

Coconut is a versatile and popular crop grown in more than 90 countries around the world. India is one of the top coconut producers in the world, producing 13 billion nuts a year. Coconut is mainly grown in coastal areas and is found in abundanceAndhra Pradesh, Goa, Assam, Karnataka, Kerala, Maharashtra, Orissa, Tamil Nadu, Tripura, West Bengal, Andaman und die Nicobaren, Lakshadweep und Pondicherry. Although establishing a coconut plantation is not easy, once complete it proves to be very beneficial as it can be harvested all year round. The future of coconut oil manufacturing seems extremely bright in India.

In Indian culture, the coconut occupies a crucial place and was found here for eternity. India now ranks third in the list of the top coconut producing countries in the world. Coconut production in India is 95 00,000 tons and the area under coconut plantation is around 1.78 million hectares in the country. Kerala is the largest producer of coconuts in India as it accounts for about 45% of the country's total production.

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Indian markets have witnessed an unprecedented uptrend over the past 14 months. The increasing demand for organic virgin coconut oil from the US and Europe has proved to be a silver lining for India. India exported 500 tons of coconut last year, while this year it is expected to double that. The virgin coconut oil and raw coconuts have been in high demand and boosted the coconut oil manufacturing business in the geographic borders of India. Fetched the raw coconutsrevenuefrom Rs. 200 crores last year.

Benefits of Coconut Oil

Coconut oil's popularity has skyrocketed in recent years due to various health benefits. With the increasing demand for plant-based foods, making coconut oil has become a popular choice for its rich flavor and mild aroma. It has become popular in various trending diets, including ketogenic and paleo diets. Because of its many uses, it is called the lifeline of health.

  1. Coconut oil is an efficient moisturizer for skin and hair.
  2. Coconut oil is an instant energy booster used by various bodybuilders, weightlifters, and athletes.
  3. It is an exceptional source of vitamins and minerals, as it contains adequate levels of iron and vitamin K, which aid in blood clotting. It is also rich in vitamin E, which is a powerful antioxidant and prevents free radical damage to cells.
  4. Coconut oil is an excellent cooking oil with a unique and exotic taste.
  5. It improves HDL cholesterol levels, which helps promote heart health.
  6. Coconut oil helps with weight loss and burns fats in the abdomen.
  7. The use of coconut oil boosts the cognitive abilities of Alzheimer's patients.
  8. It reduces inflammation caused by the growth of Candida Albicans and keeps the skin's moisture intact.
  9. Using coconut as oil pulling helps treat various dental problems like plague and bad breath.
  10. It is also helpful in curing osteoporosis as it boosts one's ability to absorb essential minerals such as calcium.

Coconut oil is an incredible natural wonder that is beneficial in many ways with no side effects. It has been used for thousands of years and has the promise of a coconut oil manufacturing company.

The Government's Role in Stimulating the Coconut Oil Manufacturing Business

The Indian government has highlighted the health benefits of coconut oil by organizing various campaigns. In order to revitalize the domestic coconut industry and expand the coconut market, the government had budgeted various funds to procure technology to enhance the value of coconut crops in India. With the massive replanting programs of various state governments, it has been possible to replace the old and diseased coconut palms with disease-resistant and high-yielding dwarf coconut palms. The fragmented lands have been grouped into clusters to enhance scientific crop management.

Coconut production has increased significantly in India in recent years, which must lead to more exports of coconut oil. There is a huge opportunity for young entrepreneurs to start a coconut oil manufacturing business in India. Since this sector has the potential to create jobs, it contributes enormously to boosting India's GDP on a larger scale.

Given the significant demand for coconut in the food sector and in industrial applications, the demand for coconut oil is much higher than the current production of coconut oil in India. It provides an opportunity for the budding businessmen and the government to promote coconut oil manufacturing in India to meet domestic and international needs. In turn, it will pave the way to create more job opportunities and make India a healthier nation.

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Coconut Development Board

The Coconut Development Board is a public corporation incorporated under theDepartment of Agriculture of the Government of India. The board is established for the integrated development of coconut and increase the productivity and product diversification of coconut in India. The Board was established on January 12, 1981 and is under the administrative control of the Ministry of Agriculture. The Coconut Development Board is headquartered in Kerala, with regional offices in Karnataka, Tamil Nadu and Assam. The coconut oil manufacturing business in India is getting a much-needed boost.

Coconut Development Board plans to promote coconut oil manufacturing business

Production and sale of planting material

Planting material production and distribution is CBD's program to enhance the production of high quality planting material through various component programs.

The Board's sub-programs include:

  1. Establishment of 7 farms with demonstration and seed production (DSP) to produce high-quality seed nuts. This DSP will cover a total area of ​​240 ha in different parts of India. The DSP farms will act as demonstration centers to improve the scientific processing of coconut cultivation.
  2. Coconut nurseries are set up to produce the high quality seedlings of desired growers or cultivars suitable for each site. Such nurseries will be attached to the demonstration farms with seed production, and such seedlings will be distributed to farmers at reasonable prices.
  3. The financial support of Rs. 50,000 will be allocated to the registered, private or licensed coconut nurseries for the annual production of 6250 seedlings from 25 cents. In addition, the financial support of Rs. 2 lakhs will be provided for the production of 25,000 seedlings on one acre.
  4. The regional coconut tree nursery is set up as a supplement to the kindergarten programs of the state governments. The financial support for establishing the regional coconut nursery in non-traditional areas is 50% of the production costs.
  5. To establish a nuclear seed garden in the private sector, registered cooperatives and farmers' unions, financial support of Rs. 6 lakh will be provided.

Expansion of the coconut area

In order to bring more coconut acreage into India's potential belts, the expansion of the coconut acreage program was launched. The small and marginal farmers would be incentivized to plant and continue to cultivate new coconuts to achieve this goal. The new planting aid will be split into two equal annual installments of Rs. 8,000 per hectare. The program is administered by the departments of agriculture or horticulture of various states and union territories. The application forms are distributed by the board to several entitled farmers via various implementing bodies of the state governments.

Integrated farming to improve productivity

To improve production and productivity of coconut farms through an integrated approach and increase net income from share farms, the following components of the program are:

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For the design of the demonstration plots, the financial support of Rs. 35,000 per hectare in two annual installments will be provided for the adoption of the integrated management practices in the gardens affected by the disease. It will help motivate farmers to adopt result-oriented production technologies.

Integrated farming to improve productivity based on the creation of the coconut cluster. Such a cluster is created to increase coconut production and improve coconut productivity. It will facilitate the adoption of coconut-based farming systems to encourage farm-level processing for community-based value creation. The selection of the clusters is based on the demonstration value, good accessibility, the cohesion of the group and the willingness of the farmers to take on responsibility. The board will implement the program on an area of ​​25-50 hectares regardless of the individual size of the farms.

The financial support of Rs. 20,000 per unit or 50% of the production cost is provided to encourage the use of organic fertilizers such as vermicompost, common compost and coco pulp compost in the coconut stocks.

Modern Copra dryers

The modern copra dryers are also used during the rainy season to dry raw coconut cups into copra. The drying process begins immediately after the nuts are split because the smoke does not come into contact with the coconut shells. By using modern copra driers, high-quality copra is produced that fetches a higher price than ordinary sun-dried copra. With the introduction of waste heat recovery technology in India, the husk is only carbonized and the heat resulting from the combustion of the production gas is used to dry the coconuts into copra. This technique will help boost the coconut oil manufacturing business in India.

The Coconut Tree Insurance Scheme

In order to recover the farmers' losses due to the damage to the coconut crops and to minimize the risks that the coconut farmers face, the coconut trees are now covered by an insurance scheme by insuring the farmers' coconut trees against natural and other disasters. In the event of a loss, they will be given timely remedy. It is done to minimize risk and encourage coconut farmers to replant and rejuvenate coconut cultivation. The government has recognized that coconut crops are at risk from climate change, natural disasters, pests, diseases, etc. due to their perennial nature. By being covered by the insurance system, the government has given a boost to the coconut oil manufacturing business in India.

Financial support as part of the technology mission

Applications for financial support under the Coconut Technology Mission have been submitted to the Coconut Development Board. Such applications are solicited from entrepreneurs for establishing, modernizing and expanding coconut oil manufacturing business and coconut oil processing units in India.

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The financial support of 25% of the project cost is limited to a maximum of Rs. 50 lakhs will be provided under the Coconut Technology Mission. Modernizations and expansions of existing units can also benefit from this regulation. Financial support will also be provided for the marketing of coconut products through the media, exhibitions, development and rental of display facilities in supermarkets and attractive packaging, etc. Therefore, the government is trying to give a boost to the coconut oil production business through various programs.

The process of making coconut oil for coconut oil manufacturing business in India

  1. Determination of the source of supply for the raw materials for the production of the coconut oil.
  2. The process of making coconut oil begins with the selection of the mature coconut.
  3. The next step is to cut the dried copra into small chips in a copra cutter.
  4. Place the chips in steam-jacketed kettles and cook at a mild temperature of 70 degrees Celsius for about 30 minutes.
  5. Insert the cooked material into the expeller and squeeze twice.
  6. Collecting the combined oil from the first and second pressing in a separate tank.
  7. Filtering of the oil through filter press and storage in MS TANKS.
  8. Final packing of the oil in the tin containers.

Machinery and raw materials used for the production of coconut oil

Here are the lists of some commonly used machines required for coconut oil production.

Coconut oil manufacturing business in India - emerging in a big way (2)

Registration and license for coconut oil production business

  1. Registering the trading company with ROC according to the ownership and liability criteria.
  2. Application for a business license at the local authority.
  3. Erhalt des Udyog AadhaarMSME registrationvia online application.
  4. State VAT registration.
  5. FSSAI Registration
  6. Factory license for large companies.
  7. BIS certification


The coconut has always been closely linked to Indian culture. It is the staple food of the southern parts of India. With the importance of coconut in almost every aspect of life, it is also associated with the religious sentiments of the people of India. It plays an important role in various Indian rituals and cultures. Coconut cultivation is thriving in most parts of the country, making India a competent producer of coconuts in the world. India produces around 95 lakh tons of coconut in a year. Not only Kerala but even Maharashtra has surpassed all its competitors with a production capacity of 9,14,548 nuts per year.

With the wide availability of coconut products and skilled workers to produce the coconut oil, India can be in a comfortable position in the world market. Accounting for 235% of the world coconut production, India has become a major player in the global coconut trade. With the increasing demand for coconut oil in the food industry, it is expected to give a big boost to the coconut oil manufacturing business in India.

The government launched the Friends of Coconut Skills Scheme to provide employment and training for 33,228 youth in the country. With this and various other government efforts, the coconut oil manufacturing business in India is expected to grow and our organization in pursuitAtmnirbhar Senastrives to help young and aspiring entrepreneurs to boost their business.


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