The Cabinet Committee on Economic Affairs approved an increase in the Minimum Support Price (MSP) for copra for the 2022 season on Wednesday.
According to the CCEA decision, the MSP for Fair Average Quality (FAQ) milling copra will be $10,590/quintal for the 2022 season, up 2.5 percent from $10,335 in 2021, and $11,000 for ball copra, up 3.8% from $10,600 in 2021.
Increase in Copra MSP:
The modal price (the price at which most trades take place) for milling copra is currently 10,000 per quintal in various Kerala markets and 10,600 in Tamil Nadu's Kangeyam market.
"This is to ensure a return of 51.85% on milling copra and 57.73% on ball copra over the all-India weighted average cost of production."
"The increase in MSP for copra for the 2022 season is in line with the government's Budget 2018-19 announcement of fixing the MSP at a level of at least 1.5 times the all-India weighted average cost of production," an official statement said.
According to the statement, the decision is based on recommendations from the Commission for Agricultural Costs and Prices (CACP) and aims to double farmers' incomes by 2022.
The National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumer Federation of India (NCCF) will continue to serve as the central nodal agencies for price support operations at the MSP in coconut-growing states.
What is copra used for?
It is consumed as food because it contains a variety of nutrients such as proteins, vitamins and minerals. The copra is hot-pressed to produce a low-melting oil with a melting point of 23 degrees Celsius. This oil can be used in cooking as well as as a raw material in the production of hair oils, shampoos, detergents, margarine, and other products.
