9/1/2004 (BUSINESS LINE) Kochi, INDIA - GLOBAL demand for coconut andcoconut products has increased considerably in recent years and it isexpected to continue in tune with the growth in world population.

According to Dr P. Rethinam, Executive Director of the Jakarta-based Asianand Pacific Coconut Community (APCC), it has been assessed that theincrease in demand per annum in the next 5 to 10 years will be: fordesiccated coconut 9 per cent, fresh coconuts 5 per cent, coconut milk 45per cent, activated carbon 45 per cent, coir dust 100 per cent, besides aneight-fold increase in coir products.

The consumption will also increase in both edible and industrial uses ofcoconuts. Uses of coconuts and its products as functional foods,nutriceutical, pharmaceutical and cosmetics as well as bio-fuel havegreater market in the years to come.

"The use of medium chain fatty acids and lauric acid in producingantiviral, antifungal, antiprotozoal and antimicrobial medicines,particularly use of lauricidin in the cure of HIV/AIDS virus would go along way in creating the market potential for coconut oil and virgincoconut oil," Dr Rethinam claimed.

While the conventional food sector has an expected growth rate of 1 to 3per cent that of functional foods is growing at a rate of 7-8 per cent.cent), the US (34 per cent) and Japan (25 per cent) would account for 90per cent of the total estimated market size, he said.

Coconut oil and its products with medium chain fatty acids have a greaterrole, therefore, to play in the fast developing functional foods sector,particularly that of baby foods, nutraceuticals, pharmaceuticals etc., hesaid.

However, according to Dr Rethinam, the tariff and non-tariff barriers areaffecting the free trade of coconut products. Despite the liberalisationof trade with targets set towards reaching a new world order of freetrade, "obstacles still exist for free movement of coconut products ininternational markets", hampering the expansion of markets for theseproducts.

The industry has to tap the full potential of coconut as a renewableresource, which could be used to generate a range of environment friendly,natural products, with a wide variety of end-uses and applications, headded.

-G.K. Nair