Union Cabinet Hikes MSP for Copra to Rs 12,100 per Quintal

In a significant move aimed at enhancing the welfare of farmers, the Union Cabinet on Friday approved the Minimum Support Price (MSP) for copra for the 2025 season.

The new MSP has been set at Rs 11,582 per quintal for Fair Average Quality (FAQ) milling copra and Rs 12,100 per quintal for ball copra. This marks a substantial increase from previous years and is expected to provide a much-needed boost to coconut growers across the country.

The approval was granted by the Cabinet Committee on Economic Affairs (CCEA), reflecting the government’s ongoing commitment to improving the livelihoods of farmers, as highlighted by Union Minister Ashwini Vaishnaw.

He emphasized that Karnataka holds the highest share of copra production in India and announced that the procurement of copra will be managed with the support of both the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) and the National Cooperative Consumers’ Federation (NCCF) as the central nodal agencies, alongside active participation from state government corporations.

The MSP increase is part of a broader policy initiative introduced in the 2018-19 Union Budget, which aims to ensure that the MSP for all mandated crops is fixed at a level at least 1.5 times the all-India weighted average cost of production. This is intended to provide remunerative prices to farmers and improve their financial stability.

For copra, the new MSP represents a remarkable growth of 121% for milling copra and 120% for ball copra, compared to the MSPs of Rs 5,250 and Rs 5,500 per quintal for the 2014 marketing season. This increase is expected to provide better returns to coconut growers and incentivize them to expand production to meet the rising domestic and international demand for coconut products.

NAFED and NCCF will continue to act as the central agencies for copra procurement under the Price Support Scheme (PSS), ensuring that farmers receive fair prices for their produce. The government’s strategic move is expected to not only support the current generation of coconut farmers but also pave the way for a more robust coconut industry in the future.