The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has given its approval for the minimum support prices (MSPs) of copra for 2021 season.
The MSP for fair average quality (FAQ) of milling copra has been increased to Rs 10,335 per quintal from Rs 9,960 per quintal for 2020 season, while the MSP for ball copra has been increased to Rs 10,600 per quintal from Rs 10,300 per quintal last year.
Briefing the Cabinet decision, Information and Broadcasting Minister Prakash Javadekar said the MSP of milling copra is higher by 52 per cent than the production cost, while the support price of ball copra is 55 per cent higher.
The increase in copra MSP for 2021 season is in line with the principle of fixing the MSP at a level of at least 1.5 times the all India weighted average cost of production, which was announced by the government in the Budget 2018-19.
Javadekar said the market prices are generally higher than the MSP, but if rates fall below the support price then the government agencies buy the product to safeguard the interest of farmers.
National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) and National Cooperative Consumer Federation of India Ltd (NCCF) are central nodal agencies to undertake price support operations at the MSP in the coconut growing states.
India is number one in production and productivity of copra in the World. It is mainly grown in the 12 coastal states.