The minimum support price (MSP) for milled copra and ball copra has been approved by the Cabinet Committee for Economic Affairs (CCEA), chaired by the PM.

 

♦ The government has raised the MSP of copra by 375 rupees since 2020. The cost of copra, therefore, is 10,335 rupees per quintal, which helps lift the income of farmers.

♦ Farmers in 12 coastal states will be impacted by the rise in MSP for copra. The Milling and Ball Copra MSP has been enhanced.

♦ Both variants of copra have a production cost of Rs. 6,800. The state would be 52 percent and 55 percent higher than the cost of production. The rise of the MSP is in line with the recommendations of Swaminathan.

♦ The MSP is the price fixed by the Indian government for agricultural products. At this amount, the government purchases products directly from farmers. MSP should not be applied by statute.

♦ By providing farmers with the minimum harvest income when the open market price is lower than the actual cost, MSP attempts to protect the interests of farmers.

♦ The prices of 23 goods are calculated twice a year by the government. The MSP is calculated on the basis of the Agricultural Cost and Price Committee`s recommendations (CACP). 

♦ Since 2009, the CACP has been setting prices on the basis of production costs, supply and demand, price volatility, consumer price patterns, international market prices and agricultural wage rates.

♦ List of Commodities for which MSP is set - A total of 23 commodities are covered by the Minimum Support Price. They are:

i)Paddy, Maize, Wheat, Barley, Sorghum, Pearl millet and Ragi (Cereals) ii) Chickpea or Gram, Moong, Tur, Urad and Lentil (Pulses) iii) Peanut, Rapeseed, Sesame, Soyabean, Sunflower Safflower, Niger seed (Oil seeds) iv) Copra, Cotton, Sugarcane and Raw jute (Commercial Crops)