The Coconut Development Board Act, 1979

Summary of the Coconut Development Board Act, 1979
The Coconut Development Board Act, 1979 was enacted by the Parliament of India to promote the planned development of the coconut industry under the control of the Central Government. The Act provides for the establishment of the Coconut Development Board (CDB) as a statutory body responsible for improving coconut cultivation, production, processing, marketing, and overall industry development. The Act was passed on 17 March 1979 and came into force on 12 January 1981.
Objectives
The main objectives of the Act are to:
• Promote the integrated development of the coconut industry.
• Increase coconut production and improve quality.
• Encourage scientific cultivation and modern farming practices.
• Support processing, marketing, and export of coconut and coconut products.
• Coordinate efforts between the Central Government, State Governments, research institutions, and growers.
Establishment of the Coconut Development Board
The Act establishes the Coconut Development Board as a body corporate with perpetual succession. It can:
• Acquire, hold, and dispose of property.
• Enter into contracts.
• Sue and be sued in its own name.
Composition of the Board
The Board consists of representatives from:
• The Central Government.
• State Governments of coconut-growing regions.
• Members of Parliament.
• Research institutions.
• Coconut growers.
• Coconut processing industry.
• Other stakeholders connected with the coconut sector.
The 2021 Amendment introduced a non-executive Chairman and a Chief Executive Officer (CEO) to improve governance and administration.
Functions of the Board
The Board is responsible for:
• Recommending measures for coconut cultivation and production.
• Financing development schemes.
• Promoting research, extension, and training.
• Improving processing and marketing of coconut products.
• Collecting and publishing industry statistics.
• Advising the Central and State Governments on coconut-related matters.
• Encouraging domestic and international marketing of coconut products.
Finance
The Act provides for:
• Grants and loans from the Central Government.
• Creation of the Coconut Development Fund.
• Borrowing powers of the Board with Central Government approval.
• Maintenance of accounts and annual audits.
Government Control
The Central Government has the power to:
• Issue policy directions to the Board.
• Approve rules and regulations.
• Require reports and returns from the Board.
• Dissolve the Board under specified circumstances.

Legislative History:

The Coconut Development Board Act, 1979

● Act Title - The Coconut Development Board Act, 1979

● Act Number / Year - 5 of 1979

● Act ID (India Code) - 197905

● Presidential Assent Date - March 17, 1979

● Enforcement Date - January 12, 1981

● Nodal Ministry - Ministry of Agriculture and Farmers Welfare

Precedent & Historical Rationale

● Integrated Development of the Coconut Industry - Enacted to provide for the integrated development of the coconut industry in India, which serves as a major source of livelihood for millions of small and marginal farmers across coastal and southern states.

● Establishment of a Statutory Development Board - Formulated to create the Coconut Development Board (CDB) as a statutory body under the Central Government. The Act empowered the Board to implement schemes for boosting coconut productivity, promoting product diversification and value-addition (such as coir, coconut water, virgin coconut oil, and desiccated coconut), assisting farmers with credit and marketing facilities, and supporting scientific research for disease management (e.g., Root (Wilt) disease).

Parliamentary Trajectory & Enactment

● Formulation - Introduced by the Ministry of Agriculture and Irrigation to fulfill long-standing demands from coconut-growing states (particularly Kerala, Tamil Nadu, Karnataka, and Andhra Pradesh) for a dedicated central commodity board similar to those for Rubber, Tea, and Coffee.

● Parliamentary Passage - Debated and passed by both Houses of Parliament (Sixth Lok Sabha and Rajya Sabha) during the budget session in February–March 1979.

● Presidential Assent - Received Presidential Assent on March 17, 1979.

● Enforcement - Enforced on January 12, 1981.

Source - Official Record of Parliament, India Code, and Ministry of Agriculture and Farmers Welfare.