Cabinet approves MSP at ₹12,100 per quintal for copra

The Union Cabinet on Friday approved a minimum support price (MSP) for copra or dried coconut kernel of ₹12,100 per quintal (100 kg), applicable for 2025.

Copra is mainly used for production of coconut oil, garnishes in sweets and curries etc. It is classified into two groups: edible and milling. Edible copra is made into balls and cups, while milling copra is made into cups only.

The Cabinet also cleared an MSP of ₹11,582 per quintal for milling copra. Copra production is largely concentrated in southern Indian states.

Karnataka has highest share in production at 32.7 %, followed by Tamil Nadu 25.7%. Kerala has a share of 25.4 % while Andhra Pradesh has a 7.7% share.

A Cabinet statement said the MSP announcements entail financial implications of ₹855 crore.

An MSP is a federally fixed floor price designed to help avoid distress sale by farmers by acting as a price signal.

The Centre had increased MSP for milling copra and ball copra from ₹5250 per quintal and ₹ 5500 per quintal for the marketing season 2014 to ₹ 11582 per quintal and ₹ 12100 per quintal for the marketing season 2025, registering a growth of 121% and 120%, respectively, a release said.

“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,” the release added.

According to the release, the 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 the Centre’s Price Support Scheme (PSS).

Copra is produced by removing the husk of a mature coconut and then extracting its white flesh. To extract oil, the flesh is dried until it is completely brittle. Farmers usually sell copra to processing plants, where it is processed into coconut oil.