The government, continuing its pro-farmer policies, approved a significant increase in the Minimum Support Price (MSP) for copra for the 2025 season. Milling copra will see a hike of 422 per quintal, with its MSP now set at 11,582 per quintal, while ball copra will increase by 100, reaching 12,100 per quintal. Information & Broadcasting Minister Ashwini Vaishnaw, after the Cabinet Committee on Economic Affairs meeting chaired by Prime Minister Narendra Modi, highlighted that this move aligns with the 2018-19 Union Budget promise to fix MSP at least 1.5 times the all-India weighted average cost of production.
The MSP hike, recommended by the Commission for Agricultural Costs and Prices (CACP), considers factors like production costs, demand and supply dynamics, global price trends, and the profitability of coconut compared to other crops. The government also ensures a minimum 50% margin over production costs. Since 2014, the MSP for milling copra and ball copra has risen by 121% and 120%, respectively, from 5,250 and 5,500 per quintal. Central agencies like NAFED and NCCF will continue procuring copra and de-husked coconut under the Price Support Scheme, requiring an additional ?855 crore from the government.
This increased MSP is expected to provide better returns to coconut farmers, especially in states like Karnataka, Tamil Nadu, Kerala, and Andhra Pradesh, which contribute significantly to copra production. The move aims to incentivize farmers to boost production to meet rising domestic and international demand for coconut products, further supporting the agricultural economy in these regions.