Once considered a nuisance, coconut waste is now emerging as a valuable resource in India’s urban landscape. Coastal cities, religious hubs, and tech centers are pioneering innovative ways to convert discarded coconut shells and husks into coir, compost, and bio-CNG. This shift is part of a broader vision under the Swachh Bharat Mission–Urban (SBM-U), led by the Ministry of Housing & Urban Affairs (MoHUA), turning what was once a civic headache into sustainable livelihoods and environmental gain.
Coastal Cities Lead the Way
Tourists flock to coastal destinations like Chennai, Kochi, and Visakhapatnam, sipping fresh coconut water. But the popularity of the beverage once created mountains of coconut husks, destined for landfills. Today, urban local bodies, private enterprises, and public-private partnerships have established dedicated Material Recovery Facilities (MRFs) to process this waste efficiently.
Cities like Mysuru and Madurai have achieved 100% recycling of coconut husks, while religious centers such as Puri, Varanasi, and Tirupati have set up specialized units to process temple-generated coconut waste. The result is a thriving circular economy where every shell is put to productive use.
Policies Fueling the Transformation
Government schemes have provided a serious financial push for coconut waste processing. SBM-U 2.0 supports entrepreneurs and urban local bodies with 25–50% central financial assistance to set up waste-processing units. The Coir Udyami Yojana adds a 40% subsidy for micro and small enterprises on projects up to ₹10 lakh. Meanwhile, the GOBARdhan scheme is rolling out 500 new waste-to-wealth plants, turning coconut residues into compost, coir, and bio-CNG.
This policy support ensures that waste becomes a sustainable livelihood opportunity, particularly for women-led self-help groups (SHGs) that dominate India’s coir sector. Today, around 7.5 lakh people, 80% of them women, are part of this rapidly growing industry.
City-Wise Success Stories
Bhubaneswar: The Palsuni coconut processing plant collects 5,000–6,000 coconuts daily from 189 temple vendors. The plant produces over 7,500 kg of coir fiber and ropes, alongside 48 metric tonnes of cocopeat-based compost. With a daily capacity of 10,000 coconuts, the unit generates ₹7–9 lakh monthly, providing steady income and technical training for local workers.
Kunnamkulam, Kerala: The Green De-Fibering Unit converts coconut husks into odor-free, microbe-enriched compost. Farmers earn ₹1.25 per husk while contributing to local green jobs. Coir fibers are sold, and leftover short fibers are repurposed into bio-pots, demonstrating the full circular potential of coconut waste.
Chennai: Public-private partnership units at Kodungaiyur and Perungudi process over 1.15 lakh metric tonnes of coconut waste into coir and compost since December 2021. The processed materials are sold to nurseries, tyre companies, and forest departments, supporting both urban landscaping and industrial needs.
Indore: A dual-line processing system adjacent to a bio-CNG plant handles 20 tonnes of coconut waste daily. The dry line produces cocopeat, enhancing soil moisture retention by up to 500%, while the wet line extracts coir fiber for ropes, sculptures, and crafts. The 20,000 sq ft unit, run by 15 workers, generates approximately ₹20,000 daily revenue.
Patna: A zero-cost waste-to-wealth model in Danapur processes 10 tonnes per day, converting husks into coir fiber for packaging, construction, and crafts, and wet waste into cocopeat and organic compost. This initiative diverts waste from landfills and creates high-value products for farming and gardening.
Scale and Economic Impact
India’s coconut production crossed 21,000 million units in 2023–24 and 2024–25, with Kerala, Tamil Nadu, Karnataka, and Andhra Pradesh contributing nearly 90%. Coastal cities generate 150–300 metric tonnes of tender coconut waste daily, creating a massive resource pool for circular economy initiatives.
The global coconut coir market is valued at USD 1.45 billion (~₹12,000 crore) in 2025, with India supplying over 40% of global demand. Booming exports of cocopeat, particularly to Europe and the U.S., are growing at 10–15% annually, turning urban waste into foreign exchange and creating employment in production and supply chains.
Environmental Benefits
Beyond economic value, coconut waste recycling has clear environmental benefits. By diverting husks from landfills, cities reduce methane emissions and curb long-term decomposition problems. Compost derived from coconut husks enriches soil naturally, reducing reliance on chemical fertilizers. Bio-CNG generated from wet waste contributes to clean energy, powering vehicles and industrial processes.
Women-Led Entrepreneurship
The coir sector is a major driver of inclusive employment. About 80% of workers in urban coir units are women, often organized under SHGs. These groups run micro and small enterprises that produce ropes, mats, compost, and cocopeat, providing income, skills, and empowerment. Supportive schemes such as SBM-U 2.0 and Coir Udyami Yojana incentivize scaling operations while keeping processes sustainable and environmentally sound.
Circular Economy in Action
India’s coconut waste journey is a model of circular economy principles: reduce, reuse, and generate value. From temple towns to tech hubs, urban coconut waste is now a resource for agriculture, renewable energy, and industrial production. MRFs, bio-CNG plants, and composting units ensure that nearly 90% of coconut waste is repurposed, turning municipal challenges into profitable, eco-friendly ventures.
Looking Ahead
With government backing, private enterprise involvement, and community engagement, India’s coconut waste-to-wealth model is poised to expand further. Cities across the country—from Chennai and Bengaluru to Indore and Patna—are scaling operations to meet rising demand for coir, compost, and bio-CNG. As sustainability and profitability align, coconut waste is no longer a problem but a thriving green industry.
India’s approach to urban coconut waste shows how policy, innovation, and citizen engagement can transform environmental challenges into economic opportunities. By combining infrastructure, subsidies, and enterprise, cities are creating jobs, boosting incomes, promoting sustainability, and generating valuable products for domestic use and export. From shell to soil, India’s urban coconut story is a blueprint for circular economy success.
.jpeg)
.jpeg)
.jpeg)
