Coconut Shell Price Surge Threatens India's Activated Carbon Export Competitiveness

The Quick Take

• A sharp rise in coconut shell prices is squeezing margins for Indian activated carbon manufacturers, putting the country's dominant global export position at risk
• India supplies over 60% of global coconut shell-based activated carbon and any sustained input cost increase could redirect orders to competing producers in Sri Lanka and the Philippines
• Industry bodies have urged government intervention including import duty rationalization on raw coconut shells to protect export market share

The activated carbon export sector represents a niche but high-value commodity trade that India has dominated due to raw material abundance. A sustained input cost shock could accelerate supply chain shifts toward competing origins, with implications for foreign exchange earnings and employment in the southern coastal belt.

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