Coconut products have a good market outlet for counties like the US, Canada, China, Korea, Netherlands, and other countries. As there is a huge demand for coconut products, a processing plant has been established with an investment of Rs.80 crores in Srikakulam District. The products like virgin coconut oil, edible oil, coconut milk, coconut water, and desiccated coconut powder, are extracted and marketed. This processing industry will procure coconuts in large scale and ensure reasonable price to farmers.
As there a huge demand, the industry is likely to expand further and plan to open more processing units in the area. Hitherto, the coconut farmers have been suffering a lot and could not sell their commodity. They use to sell their nuts at throw away price. Seeing the success of the coconut processing, the government and the Coconut Development Board have come forward for the transformation of palms in AP. Under this programme, new palms will be planted in the place of the old ones. This show that processing of agriculture product is very essential to achieve development in rural areas of AP.