The government today (December 20) announced an increase in the minimum support price (MSP) for copra by up to Rs 420 to Rs 12,100 per quintal for 2025 with a budget outlay of Rs 855 crore.
A decision in this regard was taken by the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.
Union Minister Ashwini Vaishnaw said, “A series of decisions have been taken for the welfare of farmers. It reflects our commitment, the Prime Minister’s commitment towards improving the lives of farmers… In our country, Karnataka has the highest share of Copra production…For procurement of Copra, both NAFED and NCCF will be the central nodal agencies and apart from this, the state governments will have a big role in it, so this procurement will be done with the cooperation of the state government corporations.”
The total financial implication would be Rs 855 crore. Cooperative agencies Nafed and NCCF will be the central nodal agencies for the procurement of copra, he added.
CACP considers the following while making their recommendations
- Cost of production ; demand-supply of copra and coconut oil ; trend in domestic and global prices of coconut oil and other vegetable oils ; profitability of coconut vis-à-vis other crops ; likely impact of the recommended MSP on consumers & other users
- A minimum of 50% margin over all India weighted average cost of production ;
- Karnataka has highest share in production of 32.7 %, followed by Tamil Nadu – 25.7 %, Kerala – 25.4 % and AP – 7.7 %
- Milling Copra : Rs 11,582 per quintal
- Ball Copra: Rs 12,100 per quintal
- Financial implication: Rs 855 Crore
- NAFED and NCCF will be the Central Nodal Agencies (CNAs) for Copra