Cabinet Committee on Economic Affairs decided to raise minimum support price (MSP) of copra for the 2024

During a meeting presided over by Prime Minister Narendra Modi, the Cabinet Committee on Economic Affairs decided to raise the minimum support price (MSP) of copra for the 2024 session. The dry portion of a coconut is called copra; it is sometimes referred to as gari or gola.

The government has decided to raise miling copra's MSP to Rs. 11,160 per quintal, an increase of Rs. 300 per quintal. Ball copra now has an MSP of Rs. 12,000 per quintal, up from Rs. 250 per quintal previously. This will guarantee a margin of 51.84% for milling copra and 63.26% for ball copra, according to a statement from the agriculture ministry. These figures are significantly more than 1.5 times the weighted average cost of production for all of India.

The MSP for milling copra and ball copra has been raised by the government over the last ten years, from Rs. 5,250 and Rs. 5,500 per quintal in 2014–15 to Rs. 11,160 and Rs. 12,000 per quintal in 2024–25, representing growths of 113% and 118%, respectively.

While ball or edible copra is eaten as a dry fruit and utilized for religious purposes, milling copra is used to produce oil. Milling copra is primarily produced in Kerala and Tamil Nadu, while ball copra is primarily produced in Karnataka.

According to the government, it has acquired a record-breaking 1.33 lakh metric tonnes of copra this season for Rs. 1,493 crore, helping about 90,000 farmers. The purchase shows a 227% increase over the same time.

To obtain copra and desiccated coconut under the Price Support Scheme (PSS), the National Agricultural Cooperative Marketing Federation of India Limited (NAFED) and the National Cooperative Consumers Federation (NCCF) shall persist in their roles as Central Nodal Agencies (CNAs).

The purpose of the Minimum Support Price (MSP) is to provide farmers with a fair price for their produce. MSP, to put it simply, is a buffer between farmers and unexpected price drops. As a result, it helps to preserve food security and provides a foundation for market price discovery. This promotes increased productivity and provides the agricultural sector with financial stability.

To offer farmers fair pricing, the government said in the 2018–19 Union Budget that the minimum support price (MSP) for all required crops will be set at a minimum of 1.5 times the weighted average cost of production in India.

However, only a small number of farmers can benefit from the system because of loopholes. Procurement center staff is frequently harassed in a variety of ways.

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Before the annual planting season, the Commission for Agricultural Costs & Prices (CACP) suggests MSP for 22 crops. Seven Rabi crops and fourteen Kharif crops are covered by MSP. The four crops grown during the calendar year are copra, dehusked coconut, jute, and sugar cane (FRP). Additionally, reasonable and compensatory sugar pricing has been announced.

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