Cabinet approves increase in Copra MSP for 2024

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

In the current season, the Government said it has procured a record amount of more than 1.33 lakh metric tonnes of copra, at the cost of ₹1,493 crores, benefiting around 90,000 farmers. The procurement indicates a rise of 227% from the same period in 2022.

The National Agricultural Cooperative Marketing Federation of India Limited (NAFED) and National Cooperative Consumers Federation (NCCF) will continue to function as Central Nodal Agencies (CNAs) for the procurement of copra and desiccated coconut under the Price Support Scheme (PSS).

Minimum Support Price (MSP) is a remunerative price to help farmers with adequate returns for their produce. In simple words, MSP is a shield that protects farmers from sudden dip in prices. Thus, it is conducive to maintain food security and provides a base for price discovery in the market. This gives financial stability to the agriculture system and encourages better production.

To provide remunerative prices to the cultivators, the government had announced in the Union Budget of 2018-19, that MSPs of all the mandated crops will be fixed at a level of at least 1.5 times of all India weighted cost of production.

However, due to loopholes in the system, only a few farmers are able to avail its benefits. Employees working at procurement centres are often seen harassing them in various ways.

The Commission for Agricultural Costs & Prices (CACP) recommends MSP for 22 crops before the sowing period each year. There are 14 Kharif crops and seven Rabi crops covered under MSP. Copra, de-husked coconut, jute, and sugar cane (FRP) are the four calendar year crops. Fair and remunerative prices for sugar have also been declared.