The government has raised the minimum support price (MSP) for copra to Rs 422, while the new price for the 2025 season has been fixed at Rs 12,100 per quintal. This increase has a financial cost of Rs 855 million.
The decision, approved by the Prime Minister Narendra Modi-led Cabinet Committee on Economic Affairs (CCEA), includes an increase of Rs 422 for “copper milling”. Information and Broadcasting Minister Ashwini Vaishnav confirmed that copra has been raised by Rs 100 to Rs 12,100 for the 2025 season.
The MSP, based on the recommendations of the Commission on Agricultural Costs and Prices (CACP), applies to fair and average quality of both milled and ball copra varieties. The overall financial impact of the decision is estimated at 855 million rupees.
The MSP is increased by 50 percent above the cost of production, and procurement is done under the Price Support Scheme (PSS) by the National Agricultural Cooperative Marketing Federation of India (NAFED) Limited and the National Cooperative Consumers Federation (NCCF). )
Karnataka is the largest producer of copra, accounting for 32.7 percent of the country's total production, followed by Tamil Nadu (25.7 percent), Kerala (25.4 percent) and Andhra Pradesh (7.7 percent).
The increased MSP will provide better returns to coconut farmers and encourage them to increase production to meet rising domestic and international demand for coconut-based products, the government said. The copra season in India generally lasts from January to April.
A higher MSP will not only ensure better returns to coconut growers but will also encourage farmers to expand copra production to meet the growing demand for coconut products both domestically and internationally.
The National Agricultural Cooperative Marketing Federation of India (NAFED) Ltd. and the National Cooperative Consumers' Federation (NCCF) will continue to act as Central Nodal Agencies (CNAs) for procurement of copra and desiccated coconut under the Price Support Scheme (PSS).