The Centre on Wednesday hiked the minimum support price for milling copra by Rs 375 per quintal and ball copra by Rs 300 per quintal for the 2021 season.
The decision was taken by the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi.
The MSP for fair average quality (FAQ) of milling copra has been increased to Rs 10,335 per quintal from Rs 9,960 per quintal for 2020 season, while the MSP for ball copra has been increased to Rs 10,600 per quintal from Rs 10,300 per quintal last year.
The increase in copra MSP for 2021 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, Information and Broadcasting Minister Prakash Javadekar said.
Javadekar said that the market prices are generally higher than the MSP and the government agencies step in to buy the product if rates fall below the support price.
National Agricultural Cooperative Marketing Federation of India Ltd and National Cooperative Consumer Federation of India Ltd are central nodal agencies to undertake price support operations at the MSP in the coconut growing states.
India is number one in production and productivity of copra in the World. It is mainly grown in the 12 coastal states.
Government has procured 5053.34 tonnes of ball copra and 35.58 tonnes of milling copra benefiting 4896 copra farmers during the 2020 season.