KOLKATA: Having obtained the status of an export promotion council, the Coconut Development Board (CDB) is now seeking export incentives to be made available to all coconut-based products under the Visesh Krishi and Gram Udyog Yojana.
For this, CDB is pursuing the customs authorities for inclusion of a host of value-added coconut-based products under the internationally accepted India Trade Classification (Harmonised System) Code, known as ITC (HS) code. It is pitching for those products which have been developed in recent times and have very good demand in the world market.
The board, in association with the Central Food Technological Research Institute (CFTRI) and agriculture universities in Kerala and Tamil Nadu, has developed several such products as virgin coconut oil, de-fatted coconut powder, coconut jelly, chips, biscuits, milk powder, cream and the most sought after item — packed tender coconut water.
But for having no separate numbers under the ITC (HS) codes, exporters of these products are not eligible to get the export incentive under the VKGUY scheme, which is available to exports of almost all agricultural products. The scheme offers duty-free scrip of 5% against FOB value of exports, thus allowing exporters to import goods duty-free up to 5% of exports.
Right now, the export incentive is available to coconut (copra) oil, desiccated coconut and coconut (fresh and dried). While coconut oil has been included under Chapter 8 of the ITC (HS), the rest are brought under Chapter 15.
Another matter that the board is zealously pursuing is to get right the identity of the coconut shell-based activated carbon, which is included under Chapter 38 of ITC (HS) codes as wood charcoal activated carbon.
“Unless the nomenclature for that activated carbon is set right, the board cannot proceed to claim the VKGUY benefit for this product, which is also an agro-based product,” consultant to the CDB, AV Ramanathan, told ET.
As an eco-friendly product, the coconut-shell based activated carbon has a very good demand across the world, especially in Europe.
More than 50% of export earnings from coconut-based products accrue from this single product. In 2008-09, export from this activated carbon increased 66% to Rs 150 crore, constituting nearly 50% of the total export of coconut-based products at Rs 330 crore.
Source : The Economic Times