Government raises MSP for milling copra by Rs 400/quintal

NEW DELHI: Government today hiked the minimum support price ( MSP) of milling copra for 2016 season by Rs 400 per quintal to Rs 5,950 to boost coconut cultivation.

The Cabinet Committee on Economic Affairs ( CCEA) headed by Prime Minister Narendra Modi also approved an increase of Rs 410 in MSP of 'ball copra' to Rs 6,240 per quintal.

"The MSP of milling Copra has been increased by Rs 400 per quintal to Rs 5,950 per quintal and MSP on ball copra has been raised by Rs 410 per quintal," Power Minister Piyush Goyal told reporters after the meeting.

MSP of copra is expected to ensure appropriate minimum prices to the farmers and step up investment in Coconut cultivation and thereby production and productivity.

The decision is based on the recommendations of Commission for Agricultural Costs and Prices (CACP), an expert body, which took into account the cost of production, overall demand-supply, domestic and international prices and cost of conversion of copra into coconut oil, among other factors.

Milling copra is used to extract oil, while edible grade of copra (ball copra) is consumed as a dry fruit and used for religious purposes.

The National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) and National Cooperative Consumer Federation of India Ltd (NCCF) would continue to act as Central Nodal Agencies to undertake price support operations at the minimum support prices in the coconut growing states.