Cut in duty to boost packaged coconut water
Packaged coconut water is in for good times. At a time when the domestic and export demand for the product are looking up.
By PK Krishnakumar, TNN |
KOCHI: Packaged coconut water is in for good times. At a time when the domestic and export demand for the product are looking up, finance minister P Chidambaram has provided a fillip by slashing the excise duty from 16% to nil in the recent budget.
The few firms that are currently engaged in the production of packaged coconut water are outside the excise duty purview as they belong to the small scale categories.
According to industry sources, the duty cut will benefit them as they grow big and prompt big companies to enter the scene.
Of the total production of 1,481 crore coconuts in the country, around 15% is going as tender coconuts. The Coconut Development Board aims to raise it to 25% through planned campaign. Of this, only a small percentage is going in the packaged form.
���There have been increased export enquiries from EU countries for packaged coconut water. The time is also ripe for India to increase its export of tender coconut water as the production of coconuts is down in Indonesia, Philipines and Sri Lanka,��� says Thomas Mathew, chief coconut development officer of CDB.
The coconut production, on the other hand, has gone up in India. As per the latest available figures, at 1,481 crore nuts in 2005-06, it has shown a growth of nearly 200 crore over the previous year. Kerala leads with a production of 633 crore nuts, followed by Tamil Nadu with 487 crore nuts.
There are about four firms active in packaged coconut water production; one each in Tamil Nadu, Karnataka, Gujarat and West Bengal. ���We are into exports mostly. We send our packaged coconut water to the Gulf, New Zealand and Europe. We are also looking to expand to more countries,��� said CM Kamraj, MD of Sakthi Coconut Products.
Another trend that is emerging is the demand for organic coconut water. The enquiries are coming mostly from EU countries, according to Mr Mathew. The products need to get organic certification from an approved agency.
���The coconut production from Lakshadweep holds much promise in this regard. The productivity is highest in the country and hardly any chemical fertilisers are applied to coconut plantations,��� he said. The productivity in Lakshadweep is 19,630 nuts per hectare against the national average of 7,608 nuts per hectare.
The few firms that are currently engaged in the production of packaged coconut water are outside the excise duty purview as they belong to the small scale categories.
According to industry sources, the duty cut will benefit them as they grow big and prompt big companies to enter the scene.
Of the total production of 1,481 crore coconuts in the country, around 15% is going as tender coconuts. The Coconut Development Board aims to raise it to 25% through planned campaign. Of this, only a small percentage is going in the packaged form.
���There have been increased export enquiries from EU countries for packaged coconut water. The time is also ripe for India to increase its export of tender coconut water as the production of coconuts is down in Indonesia, Philipines and Sri Lanka,��� says Thomas Mathew, chief coconut development officer of CDB.
The coconut production, on the other hand, has gone up in India. As per the latest available figures, at 1,481 crore nuts in 2005-06, it has shown a growth of nearly 200 crore over the previous year. Kerala leads with a production of 633 crore nuts, followed by Tamil Nadu with 487 crore nuts.
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There are about four firms active in packaged coconut water production; one each in Tamil Nadu, Karnataka, Gujarat and West Bengal. ���We are into exports mostly. We send our packaged coconut water to the Gulf, New Zealand and Europe. We are also looking to expand to more countries,��� said CM Kamraj, MD of Sakthi Coconut Products.
Another trend that is emerging is the demand for organic coconut water. The enquiries are coming mostly from EU countries, according to Mr Mathew. The products need to get organic certification from an approved agency.
���The coconut production from Lakshadweep holds much promise in this regard. The productivity is highest in the country and hardly any chemical fertilisers are applied to coconut plantations,��� he said. The productivity in Lakshadweep is 19,630 nuts per hectare against the national average of 7,608 nuts per hectare.
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