Coconut — the islands' economy
Lakshadweep is a UT of 36 islands (10 inhabited) off the Malabar coast. Total land area is ~32 sq km. The islands are part of the same atoll-and-reef system as the Maldives. Coconut (Cocos nucifera) is the dominant land-use — covering >90 % of the cropped area. The islands have ~3 — 3.5 million productive palms. Annual nut yield is estimated at 50 — 80 million nuts. Beyond subsistence consumption, copra, virgin coconut oil (VCO), coir products, neera (sweet sap drink), and shell-based handicraft form the value-addition base.
Coconut development on the islands runs through: (a) the central Coconut Development Board (CDB) headquartered in Kochi — the lead institutional player for coconut replanting, rejuvenation, and value-addition; (b) the Lakshadweep UT Administration Department of Agriculture; (c) the Lakshadweep Cooperative Marketing Federation (LACMARF) — the cooperative aggregator for copra, coir, and VCO. The model is the same Coconut Producer Society (CPS) → Federation → Coconut Producer Company (CPC) cluster route used in Kerala, scaled to island sizes.
Programme components
- Replanting: felling subsidy (~₹1,000 / palm) + quality seedling supply (D × T hybrids, Lakshadweep Ordinary, West Coast Tall) + 3-year maintenance subsidy.
- Intercropping: subsidy for banana, papaya, vegetable, fodder, black pepper, ginger beneath young coconut palms during the 5 — 6 year juvenile period — provides income during the gap.
- Coir value-add: husk-fibre extraction units, mat / mattress / rope micro-units via Coir Board co-funding.
- Virgin Coconut Oil (VCO): cold- press units; targeted at premium-niche export to GCC and SAARC markets.
- Neera tapping: licenced fresh-sap collection; nutritious beverage as alternative to toddy.
- Copra drying yards: covered drying platforms reduce post-harvest loss in monsoon.
- LACMARF aggregation: cooperative buys copra at floor price; markets via mainland channels.
Eligibility
- Lakshadweep resident coconut grower with island land patta / pahani-equivalent record.
- Cluster route preferred — Coconut Producer Society (CPS) at the island level; multi-island Federations and CPC at the cooperative scale.
- Aadhaar — for DBT seeding.
How to apply / participate — step by step
- Join the local Coconut Producer Society (CPS) at your island; if no CPS, register one with the UT Department of Cooperation under the CDB cluster framework.
- Submit Aadhaar, land record, bank account, palm count + age + yield self-declaration via the CPS or directly on coconutboard.gov.in.
- CDB Field Officer / UT Agriculture Officer verifies; identifies replanting layout, intercrop plan, value-add component.
- Subsidy released in tranches: felling, seedling, maintenance, value-add unit installation — against geo-tagged photographic verification.
- For value-add (coir, VCO, copra), supply to LACMARF or empanelled aggregator for marketing.
Latest changes (2024 — 2026)
- 2024-25: CDB cluster outlay sustained in Lakshadweep; intercropping packages standardised.
- March 2025: VCO export pilot to GCC / Maldives via Kochi port; LACMARF leading the consortium.
- August 2025: AgriStack Farmer ID integration for island farmers — single beneficiary identification for CDB + UT schemes.
- 2025-26: Convergence with PMFME (food processing micro-units) and SFURTI (Khadi & Village Industries cluster) for coir and VCO value-add scale-up.
Common rejection / failure modes
- CPS not registered: cluster route requires functional CPS — register first.
- Survival check failed: maintenance subsidy stops if <70 % seedling survival at year-end check.
- Non-accredited seedling: subsidy applies only to CDB-accredited nurseries.
- Aadhaar — bank seeding failure: DBT credit fails on NPCI side; remediate at the island CSC.
- Land-record mismatch: island patta records can be informal; UT Revenue verification required.
- Transportation constraints: value- add unit feasibility limited by inter-island and mainland shipping cycles (monsoon disrupts).
Grievance: CPS → CDB Field Officer → UT Agriculture Officer → CDB HQ Kochi → Lakshadweep UT Administrator's Office.
Coverage statistics
Per CDB and Lakshadweep UT data, the islands have ~3 — 3.5 million productive coconut palms across inhabited islands (Kavaratti, Agatti, Amini, Andrott, Bitra, Chetlat, Kadmat, Kalpeni, Kiltan, Minicoy). Cluster CPS / Federation / CPC structure covers a large share of growing households. Cumulative replanting under CDB schemes runs into lakhs of palms over the 1981 — 2025 horizon. Annual production: ~50 — 80 million nuts; copra ~10 — 15 kt; coir + VCO + neera on smaller value-add scales. Exact figures are published in the CDB annual report, Lakshadweep UT Statistical Handbook, and the Lakshadweep Economic Review.
How this scheme stacks with other schemes
Coconut Development is the UT's lead agricultural rail. Companion programmes: Marine Fishery (PMMSY + UT) — the other dominant rural livelihood; MIDH (horticulture for inter-cropping packages and banana / vegetable cluster development); PMFME (micro-enterprises in food processing — VCO, coir, neera, copra products); PM-KISAN (₹6,000 / year income support); PMFBY (crop loss cover). KCC-MISS finances inputs; NMNF / PKVY for organic / natural coconut farming.
Related
- Lakshadweep Marine Fishery (tuna + reef).
- MIDH (horticulture).
- Lakshadweep state guide.