A farmer peeling copra from the shell at Tiptur, in Tumakuru district of Karnataka
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The Activated Carbon Manufacturers Association of India (ACMAOI) has raised concerns over the uncontrolled increase in coconut shell prices, saying the rising cost of raw materials is making Indian activated carbon manufacturers increasingly uncompetitive against Chinese suppliers.At its annual general body meeting, the association noted that Chinese producers are purchasing whole coconuts from Indonesia and the Philippines to manufacture activated carbon, which is then exported to African and European markets at lower prices.In contrast, coconut shell prices in the southern Indian States have been rising sharply without any effective mechanism to regulate the market, putting Indian producers at a disadvantage, the association said.To address the issue, ACMAOI has decided to issue monthly indicative prices for coconut shells to producers, with the aim of bringing greater regulation and stability to the market. The indicative price for September has been fixed at ₹105–₹107 per kg, while the range for October has been set at ₹98–₹100 per kg.The association also decided to approach the GST authorities seeking the inclusion of coconut shell and charcoal under the GST framework. At present, both commodities are outside the GST regime and attract nil tax, according to the association. It believes bringing them under a regulated tax mechanism could help improve transparency and control in the market.Despite India’s activated carbon exports being valued at around ₹4,700 crore, the industry is facing multiple challenges.These include tariff-related issues in the US, high raw material costs and growing competition from Chinese suppliers in markets that were traditionally served by Indian manufacturers. EU sanctions affecting Russia and Sudan, where Indian producers have established markets, have also created difficulties.The ongoing crisis in West Asia has further aggravated the situation by increasing ocean freight costs and reducing the availability of export containers and vessels, the association said.The industry has therefore called for measures to address raw material price volatility and other supply-chain constraints to protect India’s position in the global activated carbon market.Published on September 7, 2026
