The Cabinet Committee on Economic Affairs on Wednesday approved the increase in Minimum Support Price (MSP) for copra for 2022 season.
According to the CCEA decision, the MSP for Fair Average Quality (FAQ) of milling copra will be ₹10,590/quintal for 2022 season — up by 2.5 per cent from ₹10,335 in 2021, while that of ball copra will be ₹11,000/quintal — up by 3.8 per cent from ₹10,600 in 2021.
Currently, the modal price (rate at which most trades take place) for milling copra is ₹10,000 a quintal in various markets in Kerala and ₹10,600 in Tamil Nadu’s Kangeyam market.
“This is to ensure a return of 51.85 per cent for milling copra and 57.73 per cent for ball copra over the all-India weighted average cost of production. The increase in MSP for copra for 2022 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 as announced by the government in the Budget 2018-19,” an official statement said.
The decision is based on recommendations of the Commission for Agricultural Costs and Prices (CACP) and towards making possible doubling of farmers’ incomes by 2022, the statement said.
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.