Revised Minimum Support Prices Set to Energize Coconut Farming in 2024

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has given its nod to the Minimum Support Prices (MSPs) for copra for the upcoming 2024 season. This move is in line with the government's commitment, as announced in the Union Budget of 2018-19, to fix MSPs for all mandated crops at a minimum of 1.5 times the all India weighted cost of production.

MSPs Set to Boost Farmers' Income

For the Fair Average Quality of milling copra, the MSP has been set at Rs.11,160/- per quintal, while for ball copra, it stands at Rs.12,000/- per quintal for the 2024 season. These prices guarantee a margin of 51.84 percent for milling copra and 63.26 percent for ball copra, exceeding the stipulated 1.5 times the all India weighted average cost of production.

Milling copra, primarily used for oil extraction, and ball copra, a dry fruit consumed and used for religious purposes, play essential roles in the coconut industry. Major copra producers, Kerala and Tamil Nadu, contribute significantly to milling copra production, while ball copra is predominantly produced in Karnataka.

Notable Increase in MSP Over the Years

Compared to the previous season, the MSP for the 2024 season reflects a noteworthy increase, with Rs.300/- per quintal for milling copra and Rs.250/- per quintal for ball copra. Over the past decade, the Government has consistently raised MSPs for both types of copra, marking a substantial growth of 113 percent for milling copra and 118 percent for ball copra—from Rs.5,250 per quintal and Rs.5,500 per quintal in 2014-15 to the current rates.

The enhanced MSP is not only expected to provide better returns to coconut growers but also serves as an incentive for farmers to expand copra production. This expansion is crucial to meet the rising demand for coconut products both domestically and internationally.

Record Procurement in 2023 Season

In the ongoing 2023 season, the government has procured a record amount of more than 1.33 lakh metric tonnes of copra, amounting to Rs.1,493 crores. This initiative has directly benefited approximately 90,000 farmers, indicating a substantial 227 percent increase in procurement compared to the previous season (2022).

The National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) and the National Cooperative Consumers’ Federation (NCCF) will continue to serve as Central Nodal Agencies (CNAs) for the procurement of copra and de-husked coconut under the Price Support Scheme (PSS). This ensures an organized and effective mechanism for the procurement process.