Copra MSP Increased by Rs 250-300 Per Quintal for 2024 Season

In a significant move to support coconut farmers, the Indian government has announced an increase in the minimum support price (MSP) for copra for the 2024 season. The decision was taken during a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.

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Enhanced MSP Rates

The MSP for fair and average quality (FAQ) ball copra has been increased by Rs 250 to Rs 12,000 per quintal, while the milling copra support price has been hiked by Rs 300 to Rs 11,160 per quintal for the next year. This increase ensures a margin of 51.84% for milling copra and 63.26% for ball copra, which are well beyond 1.5 times the all-India weighted average cost of production.

Commitment to Coconut Growers

Prime Minister Modi took to social media platform X to express his support for the decision. He stated that the Cabinet's approval for increased MSPs for copra will ensure greater profit margins for farmers. He emphasized the government's commitment to empowering India's coconut growers and strengthening the agricultural sector.

MSP Hike Over the Years

In the last decade, the government has significantly increased the MSP for milling copra and ball copra. From Rs 5,250 per quintal and Rs 5,500 per quintal in 2014-15, the MSP has risen to Rs 11,160 per quintal and Rs 12,000 per quintal, respectively, for the 2024-25 season.

Benefits for Farmers

The higher MSP is expected to provide better remunerative returns to coconut growers and incentivize farmers to expand copra production. This will help meet the growing demand for coconut products both domestically and internationally.

Record Procurement in 2023 Season

In the current 2023 season, the government procured a record quantity of more than 1.33 lakh tonnes of copra at a cost of Rs 1,493 crore, benefiting around 90,000 farmers. This procurement has increased by 227% compared to the 2022 season.

Nodal Agencies for Procurement

The National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) and National Cooperative Consumers' Federation (NCCF) will continue to serve as central nodal agencies for the procurement of copra and de-husked coconut under the Price Support Scheme (PSS).

Major Copra Producing States

Milling copra is primarily used to extract oil, while ball/edible copra is consumed as a dry fruit and has religious significance. Kerala and Tamil Nadu are the major producers of milling copra, whereas ball copra is predominantly produced in Karnataka.

The government's decision to increase the MSP for copra is a positive step towards supporting coconut farmers and boosting the agricultural sector. The enhanced MSP rates, along with the record procurement in the current season, demonstrate the government's commitment to ensuring fair returns for farmers and promoting the growth of coconut production in India.