The Cabinet Committee on Economic Affairs (CCEA) is likely to consider a proposal to increase the minimum support price (MSP) of copra by up to Rs 250 to Rs 5,600 per quintal for the current year.
For 2012, the Centre had fixed the MSP of milling copra at Rs 5,100 per quintal and ball copra at Rs 5,350 per quintal.
“CCEA is scheduled to meet tomorrow. The proposal related to copra MSP is on the agenda list,” sources said.
In the CCEA note, the Agriculture Ministry has proposed a Rs 250 per quintal increase in the MSP of ball copra at Rs 5,600 per quintal and a Rs 200 per quintal hike in the MSP of milling copra at Rs 5,350 per quintal for 2013 season, they said.
The Ministry has proposed the hike despite the Commission for Agricultural Costs and Prices (CACP) recommendation to the Government to keep it unchanged for the current year in view of stagnant acreage and sluggish prices.
CACP is a statutory body that advises the Government on pricing policy for major farm produce.
In the CCEA note, the Agriculture Ministry has also proposed that the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) must continue its price support operations for 2013 season.
The area under the crop is little over 19 lakh hectares, while the production is around 14,745 million nuts.
Kerala, Tamil Nadu, Andhra Pradesh and Karnataka are major coconut producing states in the country. The crop is also grown in Assam, Maharashtra, Odisha, West Bengal, Goa, Andaman & Nicobar Islands, Lakshadweep and Puducherry.