The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has granted approval for the Minimum Support Prices (MSPs) for copra for the 2024 season.
As part of the commitment made in the Union Budget of 2018-19, the government aims to fix MSPs for all mandated crops at a minimum of 1.5 times the all India weighted cost of production to ensure fair returns for cultivators.
For the 2024 season, the MSP for Fair Average Quality of milling copra has been set at Rs.11,160/- per quintal, and for ball copra, it is Rs.12,000/- per quintal.
These prices provide a margin of 51.84 percent for milling copra and 63.26 percent for ball copra, well exceeding the 1.5 times the all India weighted average cost of production.
Milling copra is utilized for oil extraction, while ball/edible copra is consumed as a dry fruit and used for religious purposes. Major producers of milling copra include Kerala and Tamil Nadu, while ball copra is predominantly produced in Karnataka.
Compared to the previous season, the MSP for the 2024 season represents an increase of Rs.300/- per quintal for milling copra and Rs.250/- per quintal for ball copra.
Over the last decade, the government has substantially raised the MSP for milling copra and ball copra, marking a growth of 113 percent and 118 percent, respectively, from Rs.5,250 per quintal and Rs.5,500 per quintal in 2014-15 to Rs.11,160 per quintal and Rs.12,000 per quintal in 2024-25.
The increased MSP is anticipated to benefit coconut growers by providing better remunerative returns and encouraging them to expand copra production to meet the growing demand for coconut products both domestically and internationally.
In the ongoing 2023 season, the government has procured a record amount of over 1.33 lakh metric tonnes of copra, costing Rs.1,493 crores and benefiting approximately 90,000 farmers. This procurement reflects a substantial increase of 227 percent compared to the previous season (2022).
The National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) and the National Cooperative Consumers’ Federation (NCCF) will continue to serve as Central Nodal Agencies (CNAs) for the procurement of copra and de-husked coconut under the Price Support Scheme (PSS).
(PIB)