**Executive Summary**
The document highlights India's success in converting coconut waste into economic and environmental gains under the Swachh Bharat Mission-Urban (SBM-U) and SBM-U 2.0 initiatives by the Ministry of Housing and Urban Affairs (MoHUA). The focus is on waste-to-wealth value chain, where coconut waste is transformed into products like coir, cocopeat, compost, and bio-CNG. The waste processing models were implemented in different cities like Patna, Indore, Chennai and many religious centres.
**Key Points / Main Content**
* **National Initiatives & Achievements:**
* India's coconut waste is being transformed into valuable resources like coir, cocopeat, and compost, reducing landfill waste.
* Coconut husk forms 3-5% of urban wet waste, but can rise to 6-8% in coastal cities.
* The SBM-U 2.0 supports the establishment of Material Recovery Facilities (MRFs) and dedicated processing units.
* The Central Government offers 25-50% Central Financial Assistance to set up waste-processing plants.
* The GOBARdhan scheme supports the development of waste-to-wealth plants for coconut residue.
* **Economic Impact:**
* The global coconut coir market is estimated to reach USD 1.45 billion in 2025, with India commanding over 40% of global production.
* Demand for cocopeat in soilless farming is growing at 10-15% annually.
* Farmers earn income from supplying coconut husks, which were previously discarded.
* **City-Specific Models:**
* Religious centers such as Puri, Varanasi, and Tirupati have established specialized Material Recovery Facilities.
* Bhubaneswar's Palsuni plant converts temple coconut waste into coir and cocopeat-based compost.
* Kunnamkulam's Green De-Fibering Unit turns coconut husks into odor-free compost.
* Chennai processes over 1.15 lakh metric tonnes of coconut waste into coir and compost through PPP units.
* Indore converts 20 TPD of coconut waste into cocopeat and coir, powering Bio-CNG.
* Patna's model processes 10 TPD of coconut waste into coir, cocopeat, and organic compost.
**Impact Analysis**
**Urban Local Bodies (ULBs)**
* **Impact**: ULBs are benefiting from reduced waste management burdens and new revenue streams from processed coconut waste.
* **Action Required**: Establish or enhance coconut waste processing facilities, participate in government schemes like SBM-U 2.0, and collaborate with private players.
**Entrepreneurs/Private Sector**
* **Impact**: New business opportunities in waste processing and coir/cocopeat production are emerging, supported by government subsidies.
* **Action Required**: Apply for Central Financial Assistance to set up waste-processing plants and leverage Coir Udyami Yojana.
**Farmers**
* **Impact**: Farmers are earning additional income by selling coconut husks and benefiting from access to organic compost.
* **Action Required**: Supply coconut husks to processing units and adopt sustainable farming practices using coconut-based products.
**Self-Help Groups (SHGs)**
* **Impact**: Employment and income generation opportunities for SHG members, particularly women, through coir production.
* **Action Required**: Participate in training programs and manage/operate coconut waste processing units.
**Citizens**
* **Impact**: Citizens benefit from cleaner cities, reduced landfill waste, and sustainable products.
* **Action Required**: Segregate waste, dispose of coconut waste properly to ensure it reaches processing units.
Key Entities Referenced
Swachh Bharat Mission-Urban (SBM-U) 2.0: Government program for urban waste management mentioned as supporting coconut waste recycling initiatives.
Ministry of Housing & Urban Affairs (MoHUA): Government ministry overseeing the initiative to transform coconut waste into sustainable livelihoods.
India: The country where coconut waste recycling initiatives are being implemented in various cities and states.
Material Recovery Facilities (MRFs): Facilities used to process temple generated coconut waste
Coir Udyami Yojana: Government scheme which provides financial assistance for setting up waste-processing plants.
Ministry of Housing & Urban Affairs
From Shell to Soil: India’s Urban Local Bodies
Recycle Coconut Waste into Economic and
Environmental Gains
Religious centres such as Puri in Odisha, Varanasi in Uttar
Pradesh and Tirupati in Andhra Pradesh have established
specialised Material Recovery Facilities to process temple-
generated coconut waste
MoHUA Initiative in Bhubaneswar Transforms Temple
Coconut Waste into Sustainable Livelihoods and Green
Wealth
Green De-Fibering Unit in Kunnamkulam Converts Coconut
Waste into Odor-Free Compost, Boosting Farmer Income and
Local Green Jobs
PPP Units in Chennai Process Over 1.15 Lakh Metric Tonnes
of Coconut Waste into Coir and Compost
Indore’s Integrated Coconut Waste Processing Unit Converts
20 TPD into Cocopeat and Coir, Powering Bio-CNG and
Circular Economy
Patna’s Zero-Cost Coconut Waste Model Processes 10 TPD
into Coir, Cocopeat and Organic Compost, Diverting Waste
from Landfills
प्रव तथ: 31 DEC 2025 12:25PM by PIB Delhi
Once a stubborn by-product of consumption, waste became an ever-growing challenge with rising
populations and rapid urbanization. Answering the call of Prime Minister Narendra Modi through the
Swachh Bharat Mission, India flipped the script—under the Ministry of Housing Urban Affair’s
(MoHUA) leadership and SBM-U, waste is no longer a problem but a resource, transformed into products
and revenue. Nowhere is this shift more evident than in coastal cities, where coconut waste—once a civic
headache—has found a second life in the circular economy, turning nature’s leftovers into livelihoods and
value.No Shell Left Behind: Under SBM-U 2.0, coconut waste is powering livelihoods—coastal cities convert it
into sturdy ropes and rich organic manure.
As tourists flock to coastal cities seeking clean, safe, and beautiful destinations, coconut water remains the
drink of choice by the sea—healthy, refreshing, and hugely popular. That popularity once meant
mountains of coconut waste heading to landfills. Not anymore. Today, coconut waste is segregated,
recycled, and reborn as value—turned into cocopeat for organic manure and soil alternatives, and coir
fibres spun into strong ropes. What was once a seaside problem is now a smart solution.
Coconut waste has transformed from mere “green waste” into a high-value resource. Official data shows
coconut husk forms 3–5% of urban wet waste—small on paper, but massive when stacked against the 1.6
lakh tonnes of municipal waste generated daily, rising to 6–8% in coastal cities. With Karnataka, Tamil
Nadu and Kerala leading production—and Karnataka now taking the top spot—India is proving that even
a discarded shell can crack open big economic value.India’s coconut story is making serious noise on the global stage. As per Cocunut Development Board and
Coir Board, the total production crossed 21,000 million units in 2023–24 and 2024–25, led by Kerala,
Tamil Nadu, Karnataka and Andhra Pradesh contributing nearly 90%. Through this the waste-to-wealth
value chain is earning both green points and foreign exchange. The global coconut coir market is pegged
at USD1.45 billion (about ₹12,000 crore) in 2025, with India commanding over 40% of global production.
Fuelled by booming demand for cocopeat in soilless farming—especially in Europe and the US—exports
are growing at 10–15% annually, with China (37%) and the US (24%) emerging as the biggest buyers,
followed by the Netherlands, South Korea and Spain.
In Karnataka, Bengaluru, Mysuru and Mangaluru, the coconut waste to wealth story is cracking open at
scale.generating 150–300 metric tonnes of tender coconut waste every day. Tamil Nadu’s Chennai,
Coimbatore and Madurai add significantly to the flow. From Kochi and Thiruvananthapuram in Kerala to
Visakhapatnam in Andhra Pradesh, Surat in Gujarat, and Mumbai and Pune in Maharashtra, heavy
coconut water consumption has led urban local bodies and private players to develop dedicated husk-
management clusters. Setting the benchmark, Mysuru and Madurai have achieved 100% recycling of
coconut waste, while religious centres such as Puri in Odisha, Varanasi in Uttar Pradesh and Tirupati in
Andhra Pradesh have established specialised Material Recovery Facilities to process temple-generated
coconut waste—ensuring that no shell is left behind.
Government schemes are giving coconut waste a serious financial push. Under SBM-U 2.0, entrepreneurs
and urban local bodies are receiving robust support, with the Centre offering 25–50% Central Financial
Assistance to set up waste-processing plants. The Coir Udyami Yojana sweetens the deal further,providing a 40% subsidy for micro and small enterprises on projects up to ₹10 lakh. Add to that the
GOBARdhan scheme, which is rolling out 500 new waste-to-wealth plants to turn coconut residues into
compost and bio-CNG—proving that when policy meets sustainability, even waste can turn profitable.
Under SBM-U 2.0, cities are turning coconut waste into opportunity with Material Recovery Facilities
(MRFs) and dedicated processing units. Around 7.5 lakh people—80% women running SHG-led units—
are part of India’s booming coir sector. With 15,000+ units nationwide (7,766 in Tamil Nadu alone), cities
like Indore, Bengaluru, and Coimbatore are keeping 100% of coconut waste out of landfills. Nearly 90%
of this waste now becomes ropes, mats, and compost instead of burning away for 10–20 years, emitting
carbon and methane. Sustainable, profitable, and employment-packed—coconut waste is getting a serious
glow-up.
Bhubaneswar’s Palsuni coconut processing plant is turning sacred waste into wealth. It collects 5,000–
6,000 coconuts daily from 189 vendors—once discarded temple remnants that clogged drains—and
transforms them into 7,500+ kg of coir fiber and ropes, plus 48 metric tonnes of cocopeat-based compost
and blocks for farming and gardening. With a 10,000-coconut daily capacity, the plant generates ₹7–9
lakh monthly, while SHG members and Safaimitras gain steady income and dignity through technical
training and employment.
Kunnamkulam, Kerala’s Green De-Fibering Unit, with its microbe-enriched cocopeat aerobic composting
system is turning coconut husks and wet waste into odor-free compost. Farmers, who once discarded
husks, now earn ₹1.25 per husk and deliver them themselves. Run by a six-member team, the unit not
only creates local jobs but also teaches advanced composting techniques. Coconut fibers are sold for
profit, and leftover short fibers are being turned into innovative bio-pots.
In Greater Chennai, raw coconut husks are converted into compost and coir fiber. Since December 2021,
nearly 1.5 lakh metric tonnes of waste have been received, with over 1.15 lakh metric tonnes already
processed. Run under a 20-year PPP with WasteArt Communications, the units at Kodungaiyur andPerungudi are operating at full capacity, with a processing fee of about ₹764 per metric tonne. There are
nearly 30 regular buyers—including tyre companies, nurseries and forest departments.
In Indore’s coconut waste processing model with a 550 TPD bio-CNG, not a shred of coconut waste goes
wasted. Coconut waste is sent straight to a dedicated unit beside the bio-CNG plant, where 20 tonnes are
processed daily through a smart dual-line system: the dry line produces cocopeat that boosts soil moisture
retention by up to 500%, while the wet line extracts coir fibre for ropes, sculptures and crafts. Spanning
20,000 sq ft and run by 15 workers, the unit earns about ₹20,000 a day, with three major vendors already
retailing its products.
Patna, Bihar is cracking the coconut—literally—with a sharp, zero-cost waste-to-wealth model. A modern
PMC processing unit in Danapur is diverting coconut waste from landfills and turning it into value,
currently handling 10 TPD. Husks become coir fiber and ropes for packaging, construction, and crafts,
while wet waste transforms into high-demand cocopeat and organic compost for rooftops, nurseries, and
farms.
From temple towns to tech hubs, India’s coconut waste journey under Swachh Bharat Mission–Urban
proves that sustainability thrives when policy, people, and innovation align.
***
SK
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