Coconut Oil Manufacturing Business in India – Emerging in a Big Way

Coconut is a versatile and popular plantation which is grown in more than 90 countries of the world. India is one of the preeminent producers of coconut globally, producing 13 billion nuts per annum. Coconut is mainly cultivated in coastal areas and is found in abundance in Andhra Pradesh, Goa, Assam, Karnataka, Kerala, Maharashtra, Orissa, Tamil Nadu, Tripura, West Bengal, Andaman, and the Nicobar Islands, Lakshadweep, and Pondicherry. Though establishing a coconut plantation is not easy, but once it is done, it proves to be very beneficial as it can be harvested throughout the year. The future of the coconut oil manufacturing business seems to be extremely promising in India.

In Indian culture, coconut holds a crucial place and has been found here for eternity. India today holds third place in the list of significant coconut producing countries in the world. The coconut production in India is 95 00,000 metric tonnes, and the area under the coconut plantation is around 1.78 million hectares in the country. Kerala is the largest producer of coconuts in India as it accounts for around 45% of the country’s total production.

The Indian markets have been recently witnessing an unprecedented upward trend in the last 14 months. The rising demand for organic virgin coconut oil from the USA and Europe has appeared as a silver lining for India.  India exported 500 tonnes of coconut last year while this year it is expected to get double. The coconut virgin oil and raw coconuts have been high in demand and boosted the coconut oil manufacturing business in the geographical boundaries of India. The raw coconuts fetched revenue of Rs. 200 crores last year.

Benefits of Coconut Oil

The popularity of coconut oil in recent years is soaring high because of various health benefits. With the rising demand for plant-based food, the coconut oil manufacturing business 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. It is claimed as the lifeline of health because of its versatile uses.

1. Coconut oil is an efficient moisturizer for the skin and hair.
2. Coconut oil is an instant energy booster used by various bodybuilders, weight lifters, and athletes.
3. It is an exceptional source of vitamins and minerals as it contains a fair amount of iron and vitamin K that aids in blood clotting. It is also plentiful in vitamin E that is a potent antioxidant and prevents cells’ radical damage.
4. Coconut oil is outstanding oil for cooking with a unique and exotic taste.
5. It improves the level of HDL cholesterol, which helps promote heart health.
6. Coconut oil aids in losing weight and burning fats in the abdomen.
7. The use of coconut oil magnifies the cognitive abilities of Alzheimer’s patients.
8. It provides relief from inflammation caused due to the growth of candida Albicans and keeps the moisture of the skin intact.
9. Using coconut as oil pulling helps treat various dental problems such as plague and halitosis.
10. It is also helpful in curing osteoporosis as it fosters the ability of the today to absorb vital minerals like calcium.

Coconut oil is an incredible natural wonder that is beneficial in so many ways with no chance of getting any side effects. It has been utilized for thousands of years and has the prospect of a coconut oil manufacturing business.

Government’s Role in Promoting the Coconut Oil Manufacturing Business

The Government of India, by organizing various campaigns, has been highlighting the health benefits of coconut oil. To recover the domestic coconut industry and expand the coconut market, the government had set various funds in the Budget to procure technology for value addition to the coconut crops in India. With the massive replanting programs of various state governments, it has successfully replaced the old and diseased coconut palms with resistant to disease and high-yielding dwarf varieties of coconut. The fragmented landholdings have been grouped into clusters for increasing scientific crop management.

Coconut production has increased substantially in India in the last few years, which have to lead to more export of coconut oil. There is a massive opportunity for young entrepreneurs to start a coconut oil manufacturing business in India. As this sector has the potential to generate employment and contributes hugely to increasing India’s GDP to a greater extent.

With the significant demand for coconut in the food sector and industrial applications, the demand for coconut oil is much higher than the current production of coconut oil in India. It turns the opportunity for the budding businessmen and the government to promote coconut oil manufacturing in India to meet the domestic and international demands. In turn, it will pave the way for creating more employment opportunities and building India into a healthier nation.

Coconut Development Board

The coconut Development Board is a statutory body established under the Ministry of Agriculture of the Government of India. The Board is formed for the integrated development of coconut and increases the productivity and product diversification of coconut in India. The Board was formed on 12th January 1981, and it functions under the Administrative control of the Ministry of Agriculture. The headquarters of the coconut Development board is situated in Kerala, with its regional office in Karnataka, Tamil Nadu, and Assam. The coconut oil manufacturing business in India is getting a much-needed boost.

Schemes of Coconut Development Board to Promote Coconut Oil Manufacturing Business

Production and Distribution of Planting Material

The production and distribution of planting material is the program of CBD to enhance the production of good quality planting materials through various component programs.

The component programs of the Board include:

1. Establishing 7 Demonstration cum Seed Production (DSP) Farms to produce high-quality seed nuts. Such DSP will cover a total area of 240 ha in different parts of India. The DSP farms will work as a Demonstration Centers to enhance the scientific coconut cultivation processing.
2. Coconut nurseries will be set up to produce the high-quality seedlings of the desired cultivators or varieties suitable for each locality. Such nurseries will be attached to the Demonstration cum Seed production farms, and such seedlings will be distributed to the farmers at reasonable prices.
3. The financial assistance of Rs. 50,000 is allotted to the registered, private, or approved coconut nurseries for producing 6250 seedlings annually from 25 cents. In addition to this, the financial assistance of Rs. 2 lakhs will be provided for producing 25,000 seedlings from one acre.
4. To supplement the nursery programs of the State Governments, the Regional coconut Nursery will be established. The financial assistance for setting up of the regional coconut nursery in non-traditional areas will be 50% of the cost of production.
5. To establish a nuclear seed garden in the private sector, registered, cooperative societies, and farmers associations, the financial assistance of Rs. 6 lakh will be provided.

Expansion of Coconut Area

To bring more area under coconut in India’s potential belts, the expansion of the coconut area program has been established. The small and marginal farmers would get provided with incentive assistance to undertake new coconut planting and further maintenance to achieve this target. The new planting assistance will be divided into two equal annual installments at the rate of Rs. 8,000 per hectare. The program will be implemented through the Department of Agriculture or Horticulture of various states and Union Territories. The application forms will be distributed to multiple eligible farmers supplied by the Board through various implementing offices of the State Governments.

Integrated Farming for Improving Productivity

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

To layout the demonstration plots, the financial assistance of Rs. Thirty-five thousand per hectare in two annual installments will be provided for adopting the integrated management practices in the disease affected gardens. It will help to motivate farmers to adopt result-oriented production technologies.

Integrated Farming for improving productivity based on creating the coconut cluster. Such a cluster will be created to increase the production of coconut and to improve coconut productivity. It will facilitate the adoption of coconut-based farming systems to promote farm level processing for value addition based on the community. The selection of clusters will be based on the demonstration value, easy accessibility, cohesiveness of the group, and the farmers’ readiness to assume responsibility. The Board will implement the scheme in an area of 25-50 hectares irrespective of the holdings’ individual size.

The financial assistance of Rs.20, 000 per unit or 50% of the production cost will be provided to promote the use of organic manures like vermicompost, ordinary compost, and coir pith compost in the coconut holdings.

Modern Copra Dryers

The modern copra dryers will be used to dry raw coconut cups into copra even during the rainy seasons. The process of drying starts immediately after splitting the nuts because the smoke does not come into contact with the coconut cups. By adopting modern copra dryers, high-quality copra is produced which fetch more price than the ordinary sun-dried copra. With the introduction of the waste heat recovery technology in India, the shell is only carbonized and the heat created by the burning of producer gas fro, the carbonized is used to dry the coconuts into copra. This technique will help in boosting the coconut oil manufacturing business in India.

The coconut Palm Insurance Scheme

To address the losses of the farmers due to the damage caused to the coconut crops and to minimize the risks faced by the coconut farmers, the coconut palms are now covered under an insurance scheme by insuring the coconut palms of farmers against natural and other calamities, timely relief will be provided to them in case of any loss. It is done to minimize the risk and to encourage the coconut farmers to replant and rejuvenate coconut farming. The government has realized that due to the perennial nature of coconut crops, they are subject to risks from climatic change, natural disasters, pests, diseases, etc. By covering them under the insurance scheme the government has given a boost to the coconut oil manufacturing business in India.

Financial Assistance under Technology Mission

The applications for financial assistance under the Technology Mission on coconut have been invited to the Coconut Development Board. Such applications are invited from entrepreneurs for setting up, modernizing, and expanding the coconut oil manufacturing business and coconut oil processing units in India.

The financial assistance at the rate of 25% of the project cost limited to a maximum of Rs. 50 lakhs will be provided under the Technology Mission on coconut. The modernization and expansion of existing units will also be eligible to gain benefits from this scheme. The financial aid will also be provided for the marketing of coconut products through the media, exhibitions, developing and hiring display facilities in supermarkets, and by attractive packaging, etc. Thus, through various schemes, the government is trying hard to give a kick start to boost the coconut oil manufacturing business.

The Process of Making Coconut Oil for Coconut Oil Manufacturing Business in India

1. Identifying the source of obtaining the raw materials for making the coconut oil.
2. The process of making coconut oil begins with the selection of mature coconut.
3. The next step involved is cutting the dried copra into small chips in a copra cutter.
4. Feeding the chips into steam-jacketed kettles and cook at a mild temperature of 70 degrees Celcius for about 30 minutes.
5. Feeding the cooked material into the expeller and pressing it twice.
6. Collecting the combined oil from the first and second pressing in a separate tank.
7. Filtering the oil by using filter press and storing it into MS TANKS.
8. Final packing the oil in the tin containers.

Machines and Raw Materials Used for Coconut Oil Manufacturing Business

Here are the lists of some commonly used machines that are required for the coconut oil manufacturing business-

Registration & License for Coconut Oil Manufacturing Business

1. Registering the business firm with ROC according to the ownership and liability criteria.
2. Applying for the Trade License from the local authority.
3. Obtaining the Udyog Aadhaar MSME registration by online application.
4. VAT registration of the state.
5. FSSAI registration
6. Factory license for large-scale business.
7. BIS certification

Conclusion

For ages, the coconut is closely associated with the 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 a major role in various Indian rituals and cultures. Coconut cultivation thrives in most parts of the country with which India has become a competent producer of coconuts in the world. India produces around 95 lakh metric tonnes of coconut in a year. Not only just Kerala, but even Maharashtra has also left all its competitors behind with the rate of 9, 14,548 nuts producing capacity per year.

With the wide range of availability of coconut products and trained manpower for manufacturing the coconut oil, India can stand in a comfortable position in the global market. By accounting for 235 of the world’s coconut production, India has become a major player in the coconut trade of the world. With the increasing demand for coconut oil in the food industry, it is expected to give a major boost to the coconut oil manufacturing business in India.

The government has launched the skill development program under the program ‘Friends of Coconut’ scheme, to provide employment and training to 33,228 youths in the country. With this, and various other efforts of the government, the coconut oil manufacturing business in India is expected to rise and in pursuance of this our organization Aatmnirbhar Sena is adamant to assist the young and aspiring entrepreneurs to give a boost to their business.