Schemes from Coconut Development Board

Schemes of Coconut Development Board


The following details extracted from the official website of Coconut Development Board.  You may refer the said website for complete details.   The exporters of coconut and allied products can also utilize the scheme.


 1.           Production and Distribution of Planting Material

 2.           Expansion of Area under Coconut

 3.           Integrated Farming for Productivity Improvement

 4.           Technology Demonstration

 5.           Market Promotion & Statistics

 6.           Coconut Palm Insurance Scheme

 1.           Information and Information Technology

 6.           Human Resource Development

 6.           Technology Mission on Coconut

 6.           Replanting and Rejuvenation of Coconut Gardens


Production & Distribution of Planting Material


The objective of the programme is to enhance the production and supply of good quality planting materials through following component programmes. Establishment of 7 Demonstration cum Seed Production (DSP) Farms in different parts of the country in a total area of 240 ha with the aim to produce quality seednuts. These farms are the demonstration centres for scientific coconut cultivation and processing. Setting up of coconut nurseries attached to the DSP farms to produce quality seedlings of desired cultivars/varieties suitable for each locality. Raised seedlings are distributed to farmers at reasonable price.  Aid to registered/ private/ approved coconut nurseries. The financial assistance is limited to 25% of the cost of production or Rs.2 lakhs whichever is less. The minimum financial assistance of Rs.50000 is allotted for producing 6250 seedlings annually from 25 cents and maximum financial assistance of Rs.2 lakhs for producing 25000 seedlings from one acre. Establishment of Regional coconut nursery for supplementing the nursery programmes of the state government. The maximum financial assistance for setting up of regional coconut nursery in non traditional areas is 50% of cost of production. Aid to establish nuclear seed garden in private sector / registered / cooperative societies/ farmers' associations. Maximum financial assistance is limited to Rs.6 lakhs to establish seed garden phased over a period of 3 years @ Rs.3 lakhs during the 1st year and Rs.1.50 lakhs each in second and third year respectively. The quantum of financial assistance is based on the total area of seed garden (maximum 4 ha) or limited to 25% of the cost of establishment of nuclear seed garden.


List of Nucleus Seed Gardens assisted by Board 


Expansion of Area under Coconut


This programme is intended to bring in more area under coconut in the potential belts thereby increasing the production potential in the country. For this, the small and marginal farmers are given incentive assistance for undertaking new planting of coconut and its further maintenance. The new planting assistance is given at the rate of Rs. 8,000 per hectare, which is disbursed in two equal annual installments.


The programme is implemented by the Board through the Department of Agriculture/ Horticulture of various States/ UT's as the cases may be. Application forms prescribed by the Board are supplied to various implementing offices of the State Government which in turn are distributed to the eligible farmers. The filled in applications submitted by farmers after proper field verification are forwarded to the office of the Board concerned with proper recommendation of the implementing officers for further processing and sanction of subsidy. The Board after scrutiny of the applications, sanctions eligible subsidy and disburse the sum in the form of individual cheques/ demand drafts to the farmers through the same implementing offices.


Integrated Farming for Productivity Improvement


The objective of the programme is to improve production and productivity of the coconut holdings through an integrated approach and thereby increasing the net income from unit holdings with the following component programmes.

Laying out of demonstration plots

Financial assistance of Rs.35,000 per ha in two annual instalments is provided for adoption of integrated management practices in disease affected gardens. The objective of the programme is to encourage the farmers to adopt the technology developed for the management of disease affected coconut gardens. Demonstration plots will also help in motivate farmers in adoption of result oriented production technologies.

Integrated Farming for Productivity Improvement on CLUSTER basis: The objective of the Coconut Clusters is increasing the production and productivity of coconut from unit holdings by proper and timely adoption of package of practices in a farmer participatory mode. This programme will facilitate the adoption of appropriate coconut based farming systems and promote farm level processing for value addition on a community basis. The scheme is being implemented by the Board on cluster basis in a contiguous area of appropriate size of 25-50 ha irrespective of the individual size of the holdings. The selection of the cluster is based on criteria such as demonstration value, easy accessibility, availability of minimum infrastructure facilities for the adoption of average management practices, cohesiveness of the group and most importantly the readiness of the farmers in the cluster to assume responsibility and implement the programme in a farmer participatory mode as per the Board's guidelines.

List of Coconut Clusters and contact addresses

Assistance for organic manure units

To promote the use of organic manure like vermicompost, coir pith compost, ordinary compost and FYM in coconut holdings. Financial assistance of Rs.20000 per unit or 50% of cost of production is provided for setting up of a unit.


Technology Demonstration


                Maintenance of Pilot Testing Plant and Quality Control laboratories. 

                Techno-economic studies on product diversification and byproduct utilization. 

                Consultancy service on production, processing and marketing. 

                Training programmes on convenience foods.


 Market Promotion & Statistics


  1.Market information and intelligence service. 

 2.Modernization of coconut processing by introduction of improved copra dryer / other processing machineries / equipment @ 25% of the cost of dryer / equipment or maximum Rs.10,000, whichever is less.


Modern Copra Dryers

Modern Copra DryersIn the modern drier coconut cups can be converted into copra in 16-32 hours even during the rainy season. In these driers the heat generated by burning coconut shell and other farm wastes is used to dry raw coconut cups into copra. Since smoke does not come into contact with coconut cups or copra and the process of drying starts immediately after splitting the nuts, the copra produced is of high quality which fetches premium price than the ordinary sun dried or kiln dried copra for which a minimum 8-9 days are required to bring down the moisture to the required level. In the small drier of batch type (natural drought type), coconut husks and other agriculture wastes are used as fuel. Its capacity ranges between 400-3000 nuts per day and it takes 36-48 hours to process coconuts into copra. There are also big dryers of induced drought type with capacity ranging between 10,000 and 25,000 nuts and even beyond, to dry coconuts into copra or dry copra further to bring down the moisture level to the required level. Coconut shells are used as fuel in such dryers.


Now in India waste heat recovery technology is available. In this technology the shell fed as fuel is only carbonized and the heat generated by burning the producer gas from the carbonizer is used to dry coconuts into copra. Besides well dried copra good quality shell charcoal and shell oil are obtained in the process.


List of approved Modern Copra Dryer Manufacturers  

New Guidelines for Market Promotional Activities under Technology Mission on Coconut


7.   Surveys and evaluation studies.


Coconut Palm Insurance Scheme (CPIS)


1. Introduction


Coconut cultivation subjected to risks from climatic changes, natural disasters, pests, diseases etc. and, at times, entire coconut cultivation of a region, gets wiped out due to natural calamity or onset of pest attack. Coconut is a perennial crop and losses suffered by farmers due to damage of this crop, are material and needs to be addressed.

Coconut palms are perennial crops, but palm trees are characterized by periodic system of crop setting and outcomes and hence resemble seasonal annual crops and should, accordingly, eligible for insurance cover. Since coconut is cultivated under rain-fed management and is susceptible to biotic and a-biotic stresses, it is necessary to minimize risk faced by coconut farmers, predominantly small and marginal, by covering coconut palms with an insurance scheme.

2. Objectives


i) Assist coconut growers in insuring coconut palms, against natural and other perils. 

ii) Provide timely relief to farmers, who suffer income loss due to sudden death of palms. 

iii) Minimize risk and encourage replanting and rejuvenation to make coconut farming remunerative.


3. Applicability:


The CPIS will be applicable to all healthy nut bearing coconut palms; grown as mono or intercropped; on bunds farms or homestead and to all varieties of coconut, including Tall, Dwarf and Hybrids. Since Dwarf and Hybrids begin to yield fruit from 4th year of planting, this variety of coconut palms in age range of 4-60 year will be covered under the scheme, but Tall variety coconut palms will be eligible for coverage for age range of 7-60 year. Unhealthy and senile palms will be excluded from coverage.


4. Eligibility criteria:


As per the Scheme, individual farmer / grower offering at least 5 healthy nut bearing palms for insurance in specified age group, (4-60 years for dwarf, hybrid and 7-60 years for tall) contiguous area / plot will be eligible for insurance.


5. Scope of cover:


The scheme will cover all healthy palms within insurable age group in areas / districts selected for implementation of the scheme. Partial insurance of plantation in contiguous area is not allowed. Insurance coverage is from 4th / 7th year to 60th year, and split into two age groups i.e. 4-15 years and 16-60 years, for fixing premium and sum insured.


Self declaration of age group by insured farmer / grower in insurance proposal will be acceptable. Insurance Company may get the insured palms verified for authenticity, at any time before expiry of policy period or payment of claim. Insurance becomes void in event of wrong declaration of age or any material fact by insured, concerning insurance.


Farmers/ growers desiring insurance may directly contact representatives / authorized agents of Insurance Company or may contact nearest office of Agriculture / Horticulture Department. Premium will be paid by farmer / grower, net off premium subsidy, through cash, cheque/bank draft, drawn in favor of Insurance Company.


6. Contingency insured


This insurance policy pays for total loss of palm on account of happening of perils insured leading to death of insured palm or It’s becoming unproductive. In case, death of palm is not immediate, payment of sum insured will be payable on production of certificate from Coconut Development Board (CDB) / Agriculture / Horticulture Department justifying cause for declaring palm unproductive. A palm can be declared ‘unproductive’ only when further growth / rejuvenation of palm is removed / possible after the same damaged by peril(s) insured, provided palm is removed / felled by insured. In case farmer / grower wishes to retain unproductive palm as it is (with out felling), salvage value of 50% of sum insured will be deducted from claim. In any case, loss of palm will have to be established to, occurrence of peril insured.


7. Risks covered: 

The scheme covers following perils leading to death / loss of palm or palm becoming un-productive: 

i) Storm, hailstorm, cyclone typhoon, tornado, heavy rains. 

ii) Flood and inundation. 

iii) Pest and diseases of widespread nature causing, irreparable damages to palm. 

iv) Accidental fire, including forest fire and bush fire, lightening. 

v) Earth quake, landslide and tsunami 

vi) Severe drought and consequential total loss


8. Exclusions:


No claims shall be payable under the scheme, if palm is lost due to operation of peril insured is within ‘Franchise’ clause. Insurer will not be liable for any payment, under this policy, for any expenses incurred by insure in connection with or in respect of loss other than on account of perils insured. The insurance does not cover following events, in so far as they are applicable, keeping in view scope of insurance cover:


(a) Loss by Theft, War, Invasion, Civil war. Rebellion, Revolution, Insurrection, Mutiny, Lock out, Malicious Damage, Conspiracy, Military/Usurped power, Civil commotion, Confiscation, Requisition/destruction/damage by order of any Government de-jure / de-facto / by any public / municipal / local authority including damage due to power transmission.


(b) Nuclear reaction, nuclear radiation or radioactive contamination. 

(c) Impact damage due to aircraft or other falling objects 

(d) Willful negligence of insured and any one acting on his behalf. 

(e) Damage caused by human, bird or any animal action. 

(f) Improper maintenance of palms. 

(g) Palm becoming unhealthy & senile. 

(h) Natural morality of the palm, up-rooting of palm traceable to chiseling of roots.


9. Sum Insured & Premium: 

Insured sum will vary from Rs.900 per palm (for 4th – 15th year age group) to Rs.1750 per palm (for 16th to 60th year.


Sum insured per palm (Rs.)          Premium per plant/year (Rs.)

4th – 15th            900         9.00

16th – 60th         1750       14.00


10. Premium Subsidy:

Of amount under para 9 above, 50% will be paid by Coconut Development Board (CDB) and 25% by State Government concerned and balance 25% will be paid by farmer / grower. In case, the State government does not agrees to bear 25% share of premium, farmers / growers, will be required to pay 50% of premium, if interested in insurance scheme. In case some planters/growers’ association wishes to bear the premium on behalf of planters/growers, such associations may do so if they have ‘insurable interest’. In any case, the planters/growers shall have to bear a minimum of 10% premium.

Premium subsidy amount (50% by CDB and 25% by participating States) will be released to Insurance Company in advance based on estimates, which will be replenished / adjusted on quarter/year basis.


11. Insurance Term: 

A policy can be issued for a maximum period of three years for which rebate in premium @7.5% for two year policy and 12.5% for three year policy will be provided to the planters/growers.

Effort will be made to ensure that all eligible farmers / growers join the scheme by 31st March of year. However, those farmers / growers who do not join the scheme by 31st March may join the scheme subsequently, and in which case risk is covered from 1st day of succeeding month.


12. Waiting period: 

Loss / death of palms, within 30 days from inception of insurance, sum insured is not payable under the scheme, but this condition is not applicable in case of renewal of insurance, without time gap.


13. Franchise: 

The claim is assessed only if number of palms damaged, due to perils insured are in a contiguous area is more than the palms lost as shown for different slabs:


Sl No. 

No. of Insured Palms in a contiguous area             Franchise (Palms lost)

1              < 30        1

2              31-100   12

3              >100      3


14. States & Areas Covered: 

This insurance scheme will be implemented in the selected districts of all the States/UTs, growing coconut palms. 

All bearing and healthy palms will be insured, in a contiguous area, by farmer / grower and every effort will be made by CDB, to get all bearing and healthy palms insured, in cluster villages of district(s).


15. Issue of Insurance Policy: 

Certificate of Insurance / Cover not will be issued by AIC to all individual insured farmers / growers, within 30 days from receipt of proposal, with requisite premium. AIC shall also furnish a consolidated list of insured farmers / growers district-wise to Coconut Development Board (CDB), on quarterly basis.


Claim assessment & settlement procedure: 

Loss of insured palms will be intimated by insured farmers to insurance company within 15 (fifteen) days from occurrence of peril, with all relevant details. The claims may also be intimated through concerned State Government Call Centers, until Implementing Agency (i.e. insurance company) sees up its own call centre. Loss assessment certification is required to be furnished by Coconut Development Board (CDB) / Agriculture / Horticulture Department / State Agriculture University (SAU), as authorized by insurance company for each district, justifying cause for loss of palm, within 15 days from intimation of loss. Insurance company, at its discretion may send its representative to assess loss jointly with agency designated to certify loss. Insurance company will release claim to insured farmer / grower within one month from date, all relevant certified details of claim are received in their office. Release of claim amount, however, is subject to receiving premium subsidy from both CDB and concerned State.


Insurance ceases to operate once a full claim is paid. Personal Accident cover for climbers registered with CDB/State government may be arranged with the public sector general insurance companies. The sum insured and premium will be negotiated depending upon the likely number of climbers to be insured.


17. Monitoring Mechanism: 

State level Monitoring Committee will be set-up in all implementing States, consisting of representatives of CDB, insurance company and State Agriculture / Horticulture Dept, to monitor progress of scheme. This Committee will meet, at least once in quarter, to review progress and make suggestions in popularizing the scheme.

Annual review of scheme will be undertaken by Ministry of Agriculture (Gol) with participation of implementing States, Coconut Development Board and insurance company.


18. Insurance Publicity: 

Participating States and CDB will make every effort to popularize their insurance scheme among farmers / growers, using extension mechanism, at their disposal. State governments will advise all offices of Agriculture / Horticulture Department in districts to create awareness about the scheme and also facilitate insurance process by providing necessary guidance to farmers / growers.


National Crop Insurance Programme (NCIP) 

Component III: Coconut Palm Insurance Scheme (CPIS) 

Operational Guidelines (CPIS)


1. AIC will issue a Master Policy to the Department of Agriculture, which will be followed by endorsement detailing the coverage as per the Proposal and Listing Sheet submitted from time to time, based on the individual proposal received along with premium.


2. Krishi Bhavans of Department of Agriculture will function as the Nodal Point for administering the Scheme.


3. The Growers have to enroll at respective Krishi Bhavans by submitting duly filled in proposal forms along with the requisit Premium amount.


4. Only Healthy Bearing Palms (Palms yielding more than 30 Nuts per year) are eligible to be covered under the Scheme


5. All Healthy Bearing Palms in a contiguous area has to be insured by the Grower /farmer in full. In other words partial insurance of a Coconut Plantation is not allowed.


6. The Agriculture Officer of the implementing Krishi Bhavans will assist the farmers in the proper filling up of the proposals and arriving at the correct premium. Upon receipt of the duly filled in and signed proposals from the farmers, the Agriculture Officer will scrutinize the same & issue a duly signed and stamped Acknowledgement-cum-Receipt to the farmer after proper verification of Proposal Forms.


7. The farmer has to retain this document as a proof of insurance under this Scheme during, the entire Policy period and shall quote his Acknowledgement-cum- Receipt number in all his further correspondences.


8. The Agriculture Officer shall consolidate the Proposals into a Listing Sheet (in duplicate) and submit the original signed copy to the Regional Office of AIC on a Monthly basis (not later than 5th of the following month) along with all the proposals and a consolidated cheque /DD favoring Agriculture Insurance Company of India Ltd


9. The Agriculture Officer shall exercise utmost care in ensuring that all the proposals along with the prescribed premium collected at Krishi Bhavans are forwarded without any omission, elapse. In the event of non-remittance of collected proposals and premiums to AIC on time, AIC will not be, in a position to accept as due claim liability if any, arising out of such proposals and premiums collected by the Officer but not received by AIC.


10. Upon receipt of the Listing Sheet along with relevant Proposals & Premium Instrument, AIC will scrutinize the same and Excess Premium if any will be refunded back and in the case of Premium Shortage if any, it has to be recovered by the Agriculture Officer from the concerned party upon intimation from AIC. AIC will assume risk in respect of such proposals only upon receipt of the full premium.


11. During the Policy Period in the event of occurrence of insured perils leading to Total Loss of the insured palms, the insured shall give due intimation to the concerned Agriculture Officer as well as AIC's Regional Offices immediately and have to submit the duly filled in claim form to the Krishi Bhavan not later than 15 days from the date of loss.


12. Agricultural Officer will verify the loss and certify its admissibility upon inspection. The duly certified claim form needs to be forwarded to AIC within 15 days from the receipt of claim intimation. Wherever required AIC may depute professional loss assessors/AIC's Officials at its discretion for loss inspection.


13. Upon receipt of claim form with loss assessment certification from the Agriculture Officer, AIC will process the claim and shall remit the admissible claim amount to the insured at the insured's address by way of cheque/DD subject to receipt of full premium (including subsidy portion).


14. AIC will provide necessary training to the Officials in the concerned districts and provide necessary forms and publicity materials.


15. AIC will endeavor to settle all the admissible claims within one month from receipt of completed claim documents from the Agriculture Officer.


16. Department of Agriculture, State Govt. shall release its budgeted share of Agriculture Premium subsidy in advance to AIC for implementing the Scheme.


17. AIC shall give quarterly Utilization Status Report of the fund received towards subsidy to Coconut Development Board.


18. The Coconut Development Board apart from advance release its share of Premium Subsidy, shall give due publicity to the scheme


19. CDB shall facilitate enrolment of farmers in the Clusters/ CPS registered with the Board.


20. The Department of Agriculture shall popularize the Scheme though its extension machinery including its Mass Media Wing.


21. It may be noted that at least 16.2 % plan allocation be earmarked for SC and ST farmers/ beneficiaries under scheduled castes special Plan (SCSP) and Tribal Sub Plan (TSP) as per directives of Planning Commission. It may also be noted that at least 30% of budget allocations are earmarked for women beneficiaries/ farmers and this may also be intimated to the Central Government in the Monthly Progress report.


22. A MoU has to be signed among AIC, Department of Agriculture /Horticulture of State Govt.(s) and Coconut Development Board highlighting the responsibilities/obligations of each stakeholders.


Information and Information Technology

  1.     Production of publications in different languages including grant-in-aid to State Government / Universities for production of publications.

 2.      Production and screening of films including grant-in-aid to State Govt./Universities for production of films.

  3.        Participation in exhibitions and fairs.

  4.      Conducting seminars and workshops

  5.      Awards to best growers, master craftsmen, industrialists, processors and exporters.

  6.       Training youths in harvesting and plant protection.

  7.     Training farmers in scientific cultivation and post harvest processing.

 8.      Training in the manufacture of coconut based handicrafts.

 9.     National award to the best research worker or workers in product / machinery / equipment development.

  10.    Establishment of National Information Centre cum Electronic Data Processing Unit.


Human Resource Development


                1.      Training to improve technical skills of managerial and supervisory personnel.


                2.      Training and visits to understand and appraise the technologies.


Technology Mission on Coconut


Financial assistance under Technology Mission

Coconut Development Board invites applications for Financial Assistance under Technology Mission on Coconut. Applications are invited from prospective entrepreneurs for setting up /modernizing / expanding coconut processing units and promoting value added coconut based products.


Under Technology Mission on Coconut, financial assistance @ 25% of the project cost limited to a maximum of Rs.50.00 lakhs is extended as credit linked back ended subsidy for setting up of coconut processing units for production of value added coconut products. Modernization and expansion of existing processing units will also be eligible for assistance. The project for seeking assistance for setting up coconut processing unit should be submitted through the bank with a minimum of 40% of the project cost as term loan.


Packed, Branded coconut oil with Agmark standards, Virgin Coconut Oil (VCO), dietary fibre, Desiccated coconut powder, Coconut chips, defatted coconut powder, snow ball tender coconut, coconut milk powder, coconut jaggery, coconut cream, activated carbon, coconut water based vinegar, shell charcoal, packed tender nut water, minimally processed tender coconut, shell powder, shell/wood based handicrafts and copra dryer are some of the items which will be considered for assistance. Financial assistance will also be available for new and innovative coconut based products, which are backed by commercially viable technologies.


Financial assistance is provided for market promotion of coconut products through the media, participation in exhibitions / developing / hiring display facilities in super markets, adopting attractive packaging etc. @ 50% of the project cost limiting to Rs.10.00 lakhs for individuals and Rs.25.00 lakhs to co-Operative organisations.


Interested entrepreneurs can submit applications in the prescribed format along with project reports to the Chairman, Coconut Development Board, Kera Bhavan, Kochi 682 011.


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