The Coconut Development Board Act, 1979, was enacted by the Indian Parliament to address the need for centralized control and development of the coconut industry in India. The Act came into force on 12th January 1981, following a notification by the Central Government. The declaration under Section 2 of the Act emphasizes the expediency of Union control over the coconut industry, reflecting the government's recognition of the sector's importance to the national economy, particularly in states like Kerala, Tamil Nadu, Karnataka, and Andhra Pradesh, where coconut cultivation is prevalent. The Act has undergone several amendments, with significant updates in 2021 to modernize its provisions, such as the introduction of a non-executive Chairman and a Chief Executive Officer (CEO) to streamline governance.
The primary objective of the Act is to promote the development of the coconut industry under the Central Government's oversight. To achieve this, the Act establishes the Coconut Development Board (CDB) as a statutory body with corporate powers, including the ability to acquire property, enter contracts, and sue or be sued. The Board's functions, outlined in Section 10, are comprehensive and include:
Development Measures: Encouraging high-yield hybrids, modern cultivation techniques, and processing technologies to benefit small farmers.
Marketing and Pricing: Improving domestic and international marketing of coconut products and recommending minimum/maximum prices to protect growers.
Research and Statistics: Supporting agricultural and industrial research, collecting industry statistics, and publishing findings.
Financial Assistance: Providing grants or loans for replanting, cultivation, and processing initiatives.
Quality Standards: Fixing grades and standards for coconut products to ensure quality.
Governance: Replaced the executive Chairman with a non-executive Chairman and a full-time CEO to enhance operational efficiency.
Representation: Expanded state representation and clarified roles for stakeholders like coconut growers and processors.
Scope: Broadened the Board's functions to include international marketing and removed restrictions on states eligible for developmental schemes.
The Act institutionalized support for the coconut industry, which is vital for rural livelihoods, especially in South India. By centralizing control, it ensures coordinated efforts in research, marketing, and financial assistance, addressing challenges like price volatility and low productivity. The 2021 reforms reflect a shift towards professional management and inclusivity, aligning with contemporary administrative practices.