Government approves ₹250-₹300 hike in copra MSP for 2024 season

The Cabinet Committee on Economics (CCEA) on Wednesday approved raising the minimum support prices (MSP) of copra for the 2024 season by ₹ 250-300 per quintal from the current season. The MSP for medium-grade ground copra has been set at ₹ 11,160 per quintal – three percent more than ₹ 10,860 per quintal in 2023 and ₹ 12,000 for ball copra, two percent more than ₹ 10,860 per quintal. 

CACP recommendations

Addressing the media after the CCEA meeting, Information and Broadcasting Minister Anurag Thakur said the approval is based on the recommendations of the Commission on Agricultural Costs and Prices and the views of major coconut farmers. Further said that the decision to increase the MSP will ensure a margin of 51.84 percent on Copra milling and a margin of 63.26 percent on all-India weighted cost of production (A2 + family labour). He also highlighted that in the last 10 years, the government has more than doubled the milling price of ground copra and ball copra to ₹ 5,250 per quintal and ₹ 5,500 per quintal in 2014-15. The National Agricultural Cooperative Marketing Federation of India (Nafed) and the National Consumer Cooperative Federation (NCCF) continue to be the focal points for the procurement of copra and shelled coconuts directly from farmers under the Price Support Scheme (PSS) when market prices are below MSP. In the current 2023 season, the government procured a record 1.33 lakh tonnes of castor at ₹ 1,493, benefiting about 90,000 farmers. Procurement has increased by 227 percent compared to the 2022 season, a government press release said.

The prices of copra are falling

The announcement of the new MSP came after the wake of traders linked to Nafed’s announced decision to sell 90,000 tonnes of ground copra that it acquired from the open market. The move could further affect Copra prices, which were at ₹ 95/kg and above in the last week of November. prices later fell to ₹ 88 in Kerala and ₹ 85.50 in the Tamil Nadu market, almost the same as a year ago. Ground beaver is used for oil extraction, while ball/edible beaver is consumed as a dried fruit and used for religious purposes. Kerala and Tamil Nadu are the main producers of ground copra, while ball copra is mostly produced in Karnataka.

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