Activated Carbon Drives India's Coconut Product Exports (FY25)

21 Jun 2025 GS 3 Agriculture
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Activated Carbon Drives India's Coconut Product Exports (FY25) Click toview full image


  • India’s coconut exports grew by 25% in FY25, reaching ₹4,349 crore (from ₹3,469 crore in FY24).

  • Activated carbon is the largest contributor, earning ₹2,799 crore through the export of 1,76,435 tonnes (up from ₹2,108 crore and 1,54,059 tonnes in FY24).

Key Concerns for Indian Activated Carbon Industry:

  • Rising production costs due to:

    • Charcoal shortage (main raw material): prices surged from ₹40,000/tonne (2023) to ₹85,000/tonne.

    • Coconut shell scarcity due to climate change impacting coconut production.

    • High ocean freight rates caused by geopolitical tensions.

  • Chinese competition:

    • Chinese activated carbon sells at $2,500–2,700/tonne, while Indian rates are $3,600–3,700/tonne.

    • China sources cheaper coconut shells/charcoal from Indonesia, Malaysia, and the Philippines.

    • China also controls mineral mines in Africa, boosting its leverage in the global market.

Industry Outlook:

  • Around 25 units in Southern India manufacture activated carbon.

  • Many are under stress due to high raw material costs and reduced global competitiveness.

Activated Carbon 

Definition:
Activated carbon (or activated charcoal) is a highly porous form of carbon with large surface area, used primarily for adsorption of impurities.

Key Facts :

  • Made from: Carbon-rich materials like coconut shells, wood, peat, or coal.

  • Production Process:

    • Carbonization: Heating raw material in absence of air.

    • Activation: Enhancing porosity using oxidizing agents (e.g., steam, CO₂).

  • Uses:

    • Water purification (removes chlorine, odor, and contaminants).

    • Air filtration, gas masks.

    • Medical uses: Treating poisonings and drug overdoses.

    • Gold purification, industrial processes.

  • India’s edge:

    • Uses coconut shells, an agricultural byproduct, making it sustainable.

    • Southern India (especially Kerala, Tamil Nadu) is the hub due to coconut availability.

  • Export potential: Major export item under agro-based value-added products.

  • Environmental importance: Helps in pollution control, supports circular economy.

Prelims Pointers:

  • Activated carbon is produced from coconut shells (important).

  • It is not absorbed, but adsorbs (surface phenomenon).

  • India is a major exporter, but faces raw material shortages due to climate factors.

  • Export is dominated by South Indian states.

Global Activated Carbon Industry 

Top Producers:

  • China – World's largest producer and consumer due to:

    • Vast industrial base

    • Rapid industrialization

    • Stringent environmental regulations (demand in water treatment, air purification, pharma, food & beverage sectors)

  • United States – Major producer and consumer:

    • Strong industrial infrastructure

    • High demand in environmental and industrial applications

  • India – Third-largest producer:

    • Expanding industrial base

    • Growing environmental consciousness

    • Significant exporter (especially of coconut shell-based activated carbon)

Other Key Regions:

  • European Union:

    • Major importer and consumer

    • High demand in pharmaceuticals, water treatment, and food & beverages

  • Southeast Asia:

    • Emerging producer and consumer region

    • Benefiting from shift in production from developed countries

  • Other Notables:

    • Japan, South Korea: Advanced users with niche production

    • South America, Middle East: Growing consumption and market presence

Market Trends :

  • Growing demand due to tightening environmental norms, urban pollution, water scarcity, and industrial emissions.

  • Shift of production to cost-efficient regions like China, India, and Southeast Asia.

  • Applications expanding in healthcare, food safety, air and water purification.



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