Nepal's import of coconut is growing by 19 percent year-on-year. In the fiscal year 2017/18, Nepal imported coconut worth about Rs 400 million. Nepal's total demand for coconut is about 10,617 metric tonnes where domestic production and import supply represent 42 percent and 58 percent of the national demand, respectively. As the eastern Terai is suitable for growing coconut, this region should be developed to meet the demand. Likewise, the government should provide technical and financial support to coconut farmers so that they can increase their production capacity along with making Nepali coconut competitive with imported coconut. The private sector also needs to put in some effort for the commercial production of coconut.
A mere 472-hectare increase in coconut plantation is enough to substitute the import of this agro product. A coconut farm of 778 hectares (1,167 bighas) is required to meet Nepal's coconut demand. Mixed cropping in coconut farms also brings additional benefit to the farmers.