Coconut product exporters are pinning hopes on the decision of US Food and Drug Administration in excluding coconuts from the classification of tree nuts under allergen labelling requirements.

The move could pave the way for expanded market access, enhanced trade opportunities and increased potential for product development. These benefits would pave the way for a more favourable business environment for coconut product exporters, boosting their competitiveness and growth potential, Deepthi Nair, Director, Coconut Development Board.

Indian coconut food product exporters faced several challenges due to coconut being classified as a tree nut under the Food Allergen Labelling and Consumer Protection Act of 2005 (FALCPA). They had to comply with stringent allergen labelling requirements and the US importers were hesitant to source coconut based products due to the regulatory and perceived liability risks associated with it.

According to Deepthi Nair, products containing coconut were perceived as unsuitable for consumers with tree nut allergies. This has restricted market access particularly in countries like the US where stringent allergen labelling laws deterred potential buyers. The inclusion of coconut in the tree nut category led to consumer confusion forcing many to avoid coconut products unnecessarily, fearing allergenic risks as traditional tree nuts.

Positive for sector

The new development, she said, holds positive for the global coconut sector since it removes trade challenges and offers consumers a diverse range of diet options involving coconut.

By rectifying the classification, the US has removed a critical barrier enabling India’s coconut industry to compete more effectively worldwide, Ubais Ali of Mezhukkattil Mills, exporters of various coconut based products told businessline. This milestone reaffirms the safety and versatility of coconut in diverse food applications, promising sustained growth for Indian exporters.

Manufacturers, he said, can add coconut to formulations without the burden of allergen warnings. This would encourage sectors like baby food and confectionery to include coconut derivatives, something they previously avoided to sidestep “contains allergens” labels. Labels free of ‘allergen cautions’ maintain consumer trust and improve product perception which is particularly important for sensitive markets like infant nutrition and health-focussed foods.

India, a leading producer of coconuts, stands to benefit from higher export volumes and growing international demand. Enhanced regulatory clarity paves the way for product innovation – ranging from coconut-infused chocolate to specialised baby food formulas, he added.