Government Increases Minimum Support Price for Copra to Rs 12,100 per Quintal for 2025 Season

The government has announced a rise in the minimum support price (MSP) for copra, increasing it by up to Rs 420 to reach Rs 12,100 per quintal for the 2025 season. This decision was made by the Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi. The budget allocation for this increase is Rs 855 crore.

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The MSP for milling copra has been raised by Rs 420 to Rs 11,582 per quintal, while ball copra sees an increase of Rs 100 to Rs 12,100 per quintal for the year 2025. Information and Broadcasting Minister Ashwini Vaishnaw shared this update with reporters. The revised support price is based on recommendations from the Commission for Agricultural Costs and Prices (CACP) and applies to fair and average quality milling and ball copra varieties.

Procurement and Production Details

The financial impact of this MSP increase is estimated at Rs 855 crore. The minister highlighted that the new MSP is set at 50% above the production cost. The National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) and the National Cooperative Consumers’ Federation (NCCF) will act as central nodal agencies for procuring copra and de-husked coconut under the price support scheme (PSS).

Karnataka leads in copra production, contributing 32.7% of the country's total output. Tamil Nadu follows with a share of 25.7%, Kerala with 25.4%, and Andhra Pradesh with 7.7%. The increased MSP aims to provide better returns to coconut growers and encourage them to boost copra production to meet rising demand both domestically and internationally.

Seasonal Insights

India's copra season typically starts in January and continues until April. This period is crucial for farmers as they prepare to meet market demands. The government's decision to raise the MSP is expected to motivate farmers to enhance production efforts during this time.

The initiative not only promises improved financial returns for farmers but also aims to stimulate growth in copra production. This move aligns with efforts to satisfy increasing demand for coconut products within India and abroad, ensuring sustainability in the agricultural sector.

The government's strategy reflects its commitment to supporting agricultural growth by providing financial incentives that align with market needs. By setting a higher MSP, it aims to secure better income for farmers while encouraging expansion in production capacities across key states.