The government on Friday approved an increase in the minimum support price (MSP) of milling copra by Rs 439 per quintal and ball copra by Rs 380 per quintal as part of its effort to boost farmers income.
The new MSP for milling copra for 2020 season will be Rs 9,960 per quintal and that of ball copra Rs 10,300 per quintal.
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has given its approval for the MSP for copra for 2020 season.
Information & Broadcasting Minister Prakash Javadekar said India is number one in production and productivity of copra in the World. The production of copra is around 15 million tonnes. It is grown by 30 lakh farmers in 20 lakh hectares area.
The MSP for Fair Average Quality (FAQ) of milling copra has been increased to Rs 9,960 per quintal for 2020 season from Rs 9,521 per quintal in 2019. The MSP for ball copra has been increased to Rs 10,300 per quintal for 2020 season from Rs 9,920 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 per cent for milling copra and 55 per cent for ball copra over the all India weighted average cost of production," an official statement said.
The approval is based on recommendations of the Commission for Agricultural Costs and Prices (CACP).
The increase in MSP for copra 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.
The National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) and National Cooperative Consumer Federation of India Limited (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," the statement said.