EPC status to Coconut Development Board to boost exports

KOCHI: The export of coconut and coconut products is all set to shoot up following the granting of export promotion council status to Coconut Development Board.

The new status with retrospective effect from April 1, 2009 will enable the exporters to make use of the various export incentive schemes under the Commerce Ministry to boost the exports. At present, the total exports of coconut and coconut products except coir and husk comes to around Rs 300 crore, according to Coconut Development Board (CDB) sources.

Almost half of this export is accounted by activated carbon, which has huge demand across the world. The other products which have good export potential include tender coconut, shell charcoal, coconut oil, desiccated coconut and skimmed milk.

Apart from activated carbon, the tender coconut water, coconut oil and handicrafts are the main value added products that command good market across the globe. The drop in price difference in the prices of coconut oil in the international and domestic markets to 17 % has given a fillip to the coconut oil export, according to CDB chairman Minnie Mathew. The export of coconut, copra and shell charcoal too, has gone up, she said.

`` With Sri Lanka and Philippines lagging slightly in coconut product exports after tsunami and internal problems, India has good scope to increase the exports,'' P.Balachandran Nair, marketing officer of CDB said. Around 8 to 10 % increase is expected in the export of coconut-based products this year

With the EPC status, the coconut products will get the benefits of duty drawback, DEPB, Vishesh Krishi Gramadyoga Yojana etc while remaining as agricultural products. To avail of these benefits, the exporters have to get registration cum membership certificate from CDB now.

However, a product like activated carbon is still classified under the category of chemicals. CDB after a meeting with exporters has requested Commerce Ministry to include it under the list of agriculture product and incorporate this change in the new Exim policy. Similarly CDB has also recommended the Ministry to classify handicrafts made from coconut shells as coconut handicrafts to make them eligible for export incentives.

The funds under the market development assistance scheme have seen over 100 % increase in the recent budget. As EPC members, the coconut and coconut product exporters can access this to participate in more international marketing fairs to strengthen marketing efforts.