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The Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi, sanctioned the Minimum Support Prices (MSPs) for copra for the upcoming 2024 season. The government's commitment, declared in the Union Budget of 2018-19, aimed to set MSPs for all mandated crops at a level at least 1.5 times the all India weighted cost of production.
MSP Details for 2024 Season
For the Fair Average Quality of milling copra, the MSP is fixed at Rs.11,160/- per quintal, while for ball copra, it stands at Rs.12,000/- per quintal. These figures promise a substantial margin of 51.84 percent for milling copra and 63.26 percent for ball copra, significantly surpassing the 1.5 times the all India weighted average cost of production benchmark.
Milling copra, utilized for oil extraction, finds major production in Kerala and Tamil Nadu, whereas ball copra, consumed as a dry fruit and for religious purposes, is predominantly produced in Karnataka.
Progressive MSP Increase
Compared to the previous season, the MSP for the 2024 season has seen an increment of Rs.300/- per quintal for milling copra and Rs.250/- per quintal for ball copra. Over the last decade, there has been substantial growth, with MSPs rising from Rs.5,250 per quintal and Rs.5,500 per quintal in 2014-15 to Rs.11,160 per quintal and Rs.12,000 per quintal in 2024-25, marking a remarkable surge of 113 percent and 118 percent, respectively.
A higher MSP not only ensures improved returns for coconut growers but also encourages farmers to expand copra production to meet the escalating demand for coconut products both domestically and internationally.
Procurement Statistics and Agencies
In the ongoing 2023 season, the government has procured a record amount of over 1.33 lakh metric tonnes of copra, amounting to Rs.1,493 crores, benefiting approximately 90,000 farmers. This procurement represents a staggering 227 percent increase compared to the previous season (2022). The National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) and National Cooperative Consumers’ Federation (NCCF) will continue acting as the Central Nodal Agencies (CNAs) for the procurement of copra and de-husked coconut under the Price Support Scheme (PSS).