On Wednesday, the government approved an increase of Rs 375 per quintal in the minimum support price (MSP) of milling copra and Rs 300 per quintal of ball copra (copra- are the coconuts dried in order to extract oil and are also used for other purposes) to raise farmers' profits.
The Cabinet Committee on Economic Affairs, headed by Prime Minister Narendra Modi, has approved the 2021 seasons Copra's Minimum Support Prices (MSPs).
The fair average copra milling standard (FAQ) MSP was increased to Rs 10,335 per quintal from Rs 9,960 per quintal for the 2020 season, while the ball copra MSP was increased from Rs 10,300 per quintal last year to Rs 10,600 per quintal.
Explaining the Cabinet decision, Minister of Information and Broadcasting Prakash Javadekar said the copra milling MSP is 52 percent higher than the production cost, while the ball copra support price is 55 percent higher.
The rise in the copra MSP for the 2021 season is in accordance with the concept of setting the MSP at a standard of at least 1.5 times the average cost of production weighted in India, as stated by the Government in the 2018-19 Budget.
The market prices are usually higher than the MSP, Javadekar said, but if rates dip below the support price, government agencies purchase the commodity to safeguard farmers' interests.
The National Cooperative Consumer Federation of India Ltd (NCCF) and the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) are key nodal agencies in the coconut growing states to carry out price support operations at the MSP.
In the world, India is number one in copra production and productivity. In the 12 coastal states, it is predominantly grown.
