Cabinet approves Minimum Support Price for Copra for 2020 season

MSP for milling copra raise to Rs 9960 per quintal and ball copra to Rs 10300 per quintal for 2020 season

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has given its approval for the Minimum Support Prices (MSPs) for copra for 2020 season. The MSP for Fair Average Quality (FAQ) of milling copra has been increased to Rs 9960 per quintal for 2020 season from Rs 9521 per quintal in 2019 and the MSP for ball copra has been increased to Rs 10300 per quintal for 2020 season from Rs 9920 per quintal in 2019. This will accrue a benefit of Rs 439 per quintal in the milling copra and Rs 380 increase in the Ball Copra.

This is to ensure a return of 50% for milling copra and 55% for ball copra over the all India weighted average cost of production.

The approval is based on recommendations of the Commission for Agricultural Costs and Prices (CACP).

The increase in MSP for copra for 2020 season is in line with the principle of fixing the MSP at a level of at least 1.5 times the all India weighted average cost of production which was announced by the Government in the Budget 2018-19.

It assures a minimum of 50% as margin of profit as one of the important and progressive steps towards making possible doubling of farmers' incomes by 2022.

The National Agricultural Cooperative Marketing Federation of India (NAFED) and National Cooperative Consumer Federation of India (NCCF) will continue to act as Central Nodal Agencies to undertake price support operations at the MSP in the coconut growing states.

Last year when there was crash in prices in Tamil Nadu, the timely intervention by Govt of India through purchase at MSP, this pushed the market sentiment upward benefitting the copra farmers.

India is number one in production and productivity of Copra in the World.

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