"India has emerged as global leader in coconut production and productivity, but we are lagging behind in processing, value addition and exports," Pawar said after presenting national awards for best coconut growers for 2012.
The country's position is 22nd in the world as far as manufacturing of coconut products are concerned, while it is 25th place in case of exports, he said.
Pawar presented the 2012 national award for best coconut farmer to B A Nagaraj from Karnataka, best palm climber to Paul Varghese and Sudheerkumar T from Kerala, and best exporter to Indo German Carbons Ltd from Kerala. A total of 16 awards were presented under various categories.
"Hence, they are not in a position to reap benefits of various programmes implemented by various agencies," he said.
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In order to address this problem, the minister mentioned that the Coconut Development Board has initiated formation of coconut producer societies and federations to ensure farmers avail incentives declared by the government for this year.
The product diversification through use of modern technologies can help farmers get better price, he added.
Speaking on the occasion, Food Minister K V Thomas said there are more good reasons to promote coconut oil as imports are required to meet over half of India's edible oil demand.
Coconut is cultivated in 21 states. India's share in world coconut production is 26.34 per cent and is the highest, Total export of coconut and its allied products stood at Rs 1,022 crore last year.