Post war period saw the dominant position held by coconut oil previously in the intemational vegetable oils trade declining due to stagnation in production followed with its substitution by competing vegetable oils and synthetics. It was also affected badly by the campaign against it and also by tariff and non tariff barriers. With this situation the coconut producing countries while taking measures to increase production and productivity also embarked on a program of product diversification and market expansion. Though some progress has been made in these areas stiU the industry face some serious problems. Inroads made by the genetically modified oilseeds particularly through trade liberalization pose a great threat to the industry. Non-trade barriers introduced by the developed countries in the form of sanitary and phytosanitary measures further add to its difficulties. However coconut still command certam advantages. Its multi product aspect is its biggest asset. Its products are environmentally fiiendly. Its health and nutritional functions are increasingly being recognized. Its potential to mcrease production and productivity has been proven. With the increasing attention that is being paid by the national governments and mtemational bodies, coconut could and should continue to serve humanity for a long time.