The government on Friday announced an increase in the minimum support price (MSP) for copra by up to Rs 420 to Rs 12,100 per quintal for 2025 with a budget outlay of Rs 855 crore.  A decision in this regard was taken by the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.

The MSP for 'milling copra' has been increased by Rs 420 to Rs 11,582 per quintal, while for 'ball copra' by Rs 100 to Rs 12,100 per quintal for 2025, Information and Broadcasting Minister Ashwini Vaishnaw said.

The total financial implication would be Rs 855 crore. The minister said the MSP has been fixed 50 per cent higher than the cost of production.

A higher MSP will not only ensure better remunerative returns to the coconut growers but also incentivize farmers to expand copra production to meet the growing demand for coconut products both domestically and internationally. In order to provide remunerative prices to the cultivators, Government had announced in the Union Budget of 2018-19, that MSP of all the mandated crops will be fixed at levels of at least 1.5 times of all India weighted average cost of production.

National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) and National Cooperative Consumers’ Federation (NCCF) will continue to act as Central Nodal Agencies (CNAs) for procurement of copra and de-husked coconut under Price Support Scheme (PSS). Copra production remains the highest in Karnataka with 32.7 per cent share in overall country's production, followed by Tamil Nadu 25.7 per cent,