Government Approves Increased Minimum Support Price for Milling Copra

The Cabinet Committee on Economic Affairs has approved a substantial increase in the minimum support price (MSP) for milling copra for the 2025 marketing season. This new decision elevates the MSP by ₹425 per quintal, bringing it to ₹11,582 per quintal. Additionally, the MSP for ball copra has been raised by ₹100 per quintal, reaching ₹12,100 per quintal.

Financial Implications and Objectives

According to Union Minister Ashwini Vaishnaw, this decision carries a total financial implication estimated at ₹855 crore. The adjustment in MSP reflects the government’s commitment to offering better remunerative returns to coconut growers, aiming to encourage expanded copra production to meet increasing demand both domestically and internationally.

Historical Context and Regional Impact

Since 2014, the MSP for milling copra has seen a growth of 121%, increasing from ₹5,250 per quintal to ₹11,582 per quintal. Similarly, the MSP for ball copra has risen by 120% from ₹5,500 per quintal to ₹12,100 per quintal. These increases are expected to positively impact farmers in key copra-producing states like Karnataka, Kerala, Tamil Nadu, and Andhra Pradesh.

Role of Central Nodal Agencies

The National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) and the National Cooperative Consumers’ Federation (NCCF) will continue to serve as the Central nodal agencies responsible for the procurement of copra and de-husked coconut under the Price Support Scheme (PSS).

Broad Government Initiatives for Agriculture

Prime Minister Narendra Modi’s government has launched various initiatives to strengthen the agricultural sector. With a combined outlay exceeding ₹2.18 trillion, these measures include programs focused on MSP, digital agriculture, bio-innovation, and sustainable farming. For instance, the Digital Agricultural Mission, allocated ₹2,817 crore, aims to digitize farming operations, while ₹3,979 crore has been earmarked for crop science programs to ensure food and nutritional security.

Specific Projects and Allocations

Several targeted programs have been initiated, such as the Clean Plant Programme with a budget of ₹1,766 crore for horticulture development, and the Agriculture Infrastructure Fund to bolster agricultural facilities. The government has also prioritized sustainable practices through initiatives like the PM JI-VAN Yojana, which supports advanced biofuel projects, and the BioE3 initiative, promoting biomanufacturing.

Additionally, substantial funding has been allocated to various areas, including ₹1,702 crore for sustainable livestock health, ₹1,125 crore for horticulture, and ₹24,475 crore earmarked for NPK fertilizers under the Nutrient-Based Subsidy (NBS) scheme.

The article also highlights the government’s efforts under the PM Annadata Aay Sanrakshan Abhiyan (PM-AASHA) with an allocation of ₹35,000 crore to secure farmer incomes, as well as other initiatives under the PM Rashtriya Krishi Vikas Yojana (PM-RKVY) and Krishonnati Yojana with a combined budget exceeding ₹1 trillion.