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2 Feb 2026·Source: The Hindu

4 min

EconomyEnvironment & EcologyNEWS

Budget Focuses on Coconut, Cocoa, Sandalwood Production

Budget emphasizes high-value crops like coconut, cocoa, and sandalwood with dedicated schemes.

Photo by Tijana Drndarski

The Centre will support high-value crops such as coconut, sandalwood, cocoa, and cashew in the coastal areas of the country. The allocation for the scheme was ₹350 crore. Agar trees in the Northeast and nuts such as almonds, walnuts and pine nuts in hilly regions will also be supported.

India is the world’s largest producer of coconuts, and about 30 million people depend on coconuts for their livelihood. A Coconut Promotion Scheme is proposed to increase production and enhance productivity through various interventions, including replacing old and non-productive trees with new saplings. A dedicated programme is proposed for Indian cashew and cocoa to make the country self-reliant in raw cashew and cocoa production.

Regarding sandalwood, the Centre will partner with State governments to promote focused cultivation and post-harvest processing to restore the sandalwood ecosystem. Farmers organisations, however, are not enamoured by the announcement.

Key Facts

Allocation for high-value crops: ₹350 crore

India: World’s largest producer of coconuts

30 million people depend on coconuts

UPSC Exam Angles

GS Paper 3 (Economy): Agricultural policies and government interventions

GS Paper 1 (Geography): Distribution of key crops across different regions

Potential question types: Statement-based, matching pairs, analytical questions on agricultural schemes

Visual Insights

Key Statistics: Coconut, Cocoa, Sandalwood Production

Dashboard highlighting key statistics related to the government's focus on high-value crops like coconut, cocoa, and sandalwood.

Allocation for High-Value Crop Scheme: ₹350 crore
People Dependent on Coconut for Livelihood: 30 million

More Information

Background

The focus on agricultural commodities like coconut, cocoa, and sandalwood highlights the importance of the agricultural sector in the Indian economy. Historically, agriculture has been the backbone of India, contributing significantly to GDP and employment. Policies aimed at boosting agricultural production and farmer welfare have been central to economic planning since independence. The development of specific crops is often linked to geographical indications and regional specialization. For instance, certain varieties of sandalwood are unique to specific regions, making their conservation and cultivation crucial. The promotion of these crops can be seen in the context of broader efforts to enhance agricultural diversification and reduce dependence on traditional crops like rice and wheat. This diversification is essential for improving soil health and water management. Government support for agriculture is often channeled through various schemes and initiatives, such as the National Horticulture Mission and the Mission for Integrated Development of Horticulture (MIDH). These programs aim to provide financial assistance, technical support, and market linkages to farmers. The allocation of ₹350 crore for high-value crops reflects the government's commitment to promoting sustainable and remunerative agriculture.

Latest Developments

Recent trends in Indian agriculture include a greater emphasis on technology and innovation. The use of drones for crop monitoring and precision farming techniques are gaining traction. There is also a growing focus on promoting organic farming and reducing the use of chemical fertilizers and pesticides. These efforts align with global trends towards sustainable agriculture and environmental conservation.

The government's support for high-value crops can be seen as part of a broader strategy to increase agricultural exports and reduce imports. India has the potential to become a major exporter of crops like cashew and cocoa, which are currently imported in significant quantities. By promoting domestic production, the government aims to reduce the trade deficit and enhance the country's food security.

Looking ahead, the focus on high-value crops is likely to continue, with increasing emphasis on value addition and processing. This includes the development of food processing industries and the promotion of farmer producer organizations (FPOs) to improve market access and bargaining power. The success of these initiatives will depend on effective implementation and collaboration between the central and state governments.

Frequently Asked Questions

1. What are the key facts about the budget's focus on coconut, cocoa, and sandalwood that are important for UPSC Prelims?

For UPSC Prelims, remember that the budget allocates ₹350 crore for high-value crops including coconut, sandalwood, cocoa, and cashew. India is the world's largest producer of coconuts, and about 30 million people depend on coconuts for their livelihood. The Coconut Promotion Scheme aims to increase production and productivity.

Exam Tip

Focus on the allocation amount and India's position as the largest coconut producer.

2. What is the Coconut Promotion Scheme, and why is it important?

The Coconut Promotion Scheme aims to increase coconut production and enhance productivity through interventions like replacing old trees with new saplings. It's important because about 30 million people in India depend on coconuts for their livelihood, and boosting coconut production can significantly impact their economic well-being.

Exam Tip

Note the scheme's objective and the number of people dependent on coconut farming.

3. How might the budget's focus on high-value crops impact common citizens?

The focus on high-value crops can improve the income of farmers involved in cultivating these crops, especially coconut farmers. Increased production and productivity can lead to better prices and more stable livelihoods. This can also lead to more rural employment opportunities.

Exam Tip

Consider both the direct impact on farmers and the indirect impact on rural economies.

4. What are the recent developments related to government initiatives for coconut, cocoa, and sandalwood production?

The recent development is the allocation of ₹350 crore in the budget to support high-value crops like coconut, sandalwood, and cocoa. A dedicated program is proposed for Indian cashew and cocoa to make the country self-reliant in raw cashew and cocoa production.

Exam Tip

Focus on the financial allocation and the goal of self-reliance.

5. What is the significance of India being the world's largest producer of coconuts?

Being the world's largest producer of coconuts gives India a significant advantage in the global market. It supports the livelihoods of approximately 30 million people and contributes to the country's agricultural exports. This position also allows India to influence global coconut prices and trade policies.

Exam Tip

Consider the economic and social impact of coconut production in India.

6. How can Farmer Producer Organizations (FPOs) be leveraged to enhance the production and marketing of coconut, cocoa, and sandalwood?

FPOs can help farmers aggregate their produce, improve their bargaining power, and access better prices. They can also facilitate access to technology, credit, and market information. By organizing farmers into FPOs, the government can streamline support and ensure that benefits reach the grassroots level.

Exam Tip

Understand the role of FPOs in empowering farmers and improving agricultural value chains.

Practice Questions (MCQs)

1. Consider the following statements regarding the recent budgetary allocation for high-value crops: 1. The Centre has allocated ₹350 crore to support high-value crops in coastal areas. 2. The scheme focuses exclusively on coconut, sandalwood, and cocoa. 3. India is the world's largest producer of coconuts. Which of the statements given above is/are correct?

A.1 and 2 only
B.1 and 3 only
C.2 and 3 only
D.1, 2 and 3

Show Answer

Answer: B

Statement 1 is CORRECT: The Centre has allocated ₹350 crore to support high-value crops in coastal areas, as mentioned in the news summary. Statement 2 is INCORRECT: The scheme also supports cashew, agar trees in the Northeast, and nuts in hilly regions, not exclusively coconut, sandalwood, and cocoa. Statement 3 is CORRECT: India is the world's largest producer of coconuts, as stated in the news summary.

2. With reference to the government's initiative to promote sandalwood cultivation, which of the following statements is most accurate? A) The Centre will provide direct financial assistance to farmers for sandalwood cultivation. B) The Centre will partner with State governments to promote focused cultivation and post-harvest processing. C) The initiative aims to replace all existing sandalwood trees with new saplings. D) Farmers' organizations are strongly supportive of the government's sandalwood promotion initiative.

Show Answer

Answer: B

Option B is the most accurate statement. The news summary explicitly mentions that the Centre will partner with State governments to promote focused cultivation and post-harvest processing to restore the sandalwood ecosystem. Option A is incorrect as the summary doesn't mention direct financial assistance. Option C is incorrect as the initiative aims to promote cultivation, not replace all trees. Option D is incorrect as farmers' organizations are not enamoured by the announcement.

3. Which of the following crops mentioned in the news are primarily targeted for support in the coastal areas of India? 1. Coconut 2. Almond 3. Cocoa 4. Sandalwood Select the correct answer using the code given below:

A.1 and 2 only
B.1, 3 and 4 only
C.2 and 3 only
D.1, 2, 3 and 4

Show Answer

Answer: B

The news summary mentions that the Centre will support high-value crops such as coconut, sandalwood, cocoa, and cashew in the coastal areas of the country. Almonds are mentioned as being supported in hilly regions, not coastal areas. Therefore, 1, 3, and 4 are correct.