Approval of proposal to increase minimum support price of copra

21-Dec-2024 01:06 PM

The Union Cabinet Committee on Economic Affairs (CCEA) has approved a proposal to increase the minimum support price (MSP) for copra for the 2025 season.

The MSP for milling copra (general average quality) will rise by Rs 422, or 3.8%, from Rs 11,160 per quintal in 2024 to Rs 11,582 per quintal.

The MSP for ball copra will increase by Rs 100, or about 1%, from Rs 12,000 per quintal to Rs 12,100 per quintal. This decision is expected to result in a financial burden of approximately Rs 855 crore.

The government has noted that this increase is based on recommendations from the Commission for Agricultural Costs and Prices (CACP) and consultations with major coconut-producing states.

The hike aims to provide copra producers with a margin of at least 50% above the weighted average production cost at the all-India level.

Coconut oil is derived from milling copra, while ball copra is used for making kernels. Milling copra is primarily produced in Kerala and Tamil Nadu, while Karnataka is the leading producer of ball copra.

Over the last decade, the MSP of copra has more than doubled; in 2014-15, the MSP was Rs 5,250 per quintal for milling copra and Rs 5,500 per quintal for ball copra.

The National Cooperative Consumers' Federation (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED) will be responsible for purchasing copra at the MSP.