The coconut is the purest form of offering that one can render unto God. The fruit is unique in many respects.
The sweet, nectar-like water that it holds is pure and untouched by the human hand.The coarsely knit outer fibers of the coconut represent the jealousy, greed, lust, selfishness and other vices of man, which must be broken up and removed if one is to penetrate and reach the white inner purity and thereafter taste the sweet untouched nectar of spiritual purity and bliss.
The marks on the coconut make it look like the head of a human being. The coconut is broken, symbolizing the breaking of the ego or throwing out the EGO. The juice within, representing the inner tendencies (vaasanas) is offered along with the white kernel - the mind, to the Lord.
The eyes also represent the three eyes of man - the two physical eyes plus the third or 'inner eye' can penetrate the false, outer facade and reach the ultimate truth. It alone distinguishes right from wrong.
The composition of the coconut is characteristic of the three elements of man. The hard, outer shell, with its coarse fibers, represents the physical composition. The inner white fruit represents man's psychological element, and the untouched water signifies his spiritual composition.
It is also offered on occasions like weddings, festivals, the use of a new vehicle, bridge, house etc. It is offered in the sacrificial fire whilst performing homa.
Having been offered to God by way of prayer, the coconut is then eaten by Indians as blessed food or prasadham which has now received divine vibrations from God and will therefore give us good health and prosperity.