Cabinet Committee on Economic Affairs Approves Minimum Support Prices for Copra in 2024 Season

LegalitySimplified

The Cabinet Committee on Economic Affairs has granted approval for the Minimum Support Prices (MSPs) for copra in the upcoming 2024 season. This decision aligns with the announcement in the Union Budget of 2018-19, to set MSPs for all mandated crops at a level of at least 1.5 times the all India weighted cost of production to ensure remunerative prices for cultivators.

For the 2024 season, the MSP for Fair Average Quality of milling copra has been set at Rs.11,160 per quintal, and for ball copra, it stands at Rs.12,000 per quintal. This move ensures a margin of 51.84 percent for milling copra and 63.26 percent for ball copra, surpassing the 1.5 times benchmark against the all India weighted average cost of production. Milling copra, utilized for oil extraction, and ball/edible copra, consumed as a dry fruit and used for religious purposes, play vital roles in the coconut industry. Kerala and Tamil Nadu are significant producers of milling copra, while Karnataka is a predominant producer of ball copra.

The approved MSPs for the 2024 season represent an increase of Rs.300 per quintal for milling copra and Rs.250 per quintal for ball copra compared to the previous season. Over the past decade, the Government has substantially raised the MSP for milling copra and ball copra, registering a growth of 113 percent and 118 percent, respectively, from Rs.5,250 per quintal and Rs.5,500 per quintal in 2014-15 to the current levels.

This increased MSP not only ensures better returns for coconut growers but also serves as an incentive for farmers to expand copra production to meet the rising demand for coconut products, both domestically and internationally.

In the ongoing 2023 season, over 1.33 lakh metric tonnes of copra has been procured, amounting to Rs.1,493 crores, benefiting approximately 90,000 farmers. This procurement reflects a 227 percent increase over the previous season (2022).

To facilitate the procurement process, the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) and the National Cooperative Consumers’ Federation (NCCF) will continue to act as Central Nodal Agencies (CNAs) under the Price Support Scheme (PSS) for copra and de-husked coconut.

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