Government approves MSP of Rs 11,582 cr for processing of copra to boost farmers’ income, financial impact estimated at Rs 855 crore

NEW DELHI: The Cabinet Committee on Economic Affairs on Friday increased the minimum support price (MSP) for copra processing for the 2025 marketing season $425 per quintal, bringing it to $11,582 per quintal. MSP of copra is made from $100 per quintal, to $12,100 per quintal.

The total financial impact of this decision is estimated to be $855 crore, Union Information and Broadcasting Minister Ashwini Vaishnaw said after the cabinet meeting.

Copra is a piece of dried coconut used to make coconut oil. Copra is the edible dried coconut kernel.

Since 2014, the MSP for processing copra has changed from $5,250 per quintal $11,582 per metric ton, an increase of 121%. Similarly, the MSP of copra is also from $5,500 per quintal $12,100 per quintal, an increase of 120%.

ALSO READ | Apple seed discord: Farmers shouldn’t be caught in trade war

The minister said this substantial growth was aimed at ensuring better returns for coconut growers and incentivizing them to expand copra production to meet the growing demand for coconut products in the domestic and international markets.

The decision to increase the minimum support price for copra will benefit farmers in Karnataka, Kerala, Tamil Nadu and Andhra Pradesh where copra production is concentrated. Karnataka has the highest share in copra production at 32.7%, followed by Tamil Nadu at 25.7%, Kerala at 25.4% and Andhra Pradesh at 7.7%.

The National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Consumer Cooperative Federation (NCCF) will continue to serve as the central nodal agencies for procurement of copra and husk coconut under the Price Support Scheme (PSS), the minister said.

The minister said that since assuming office in June 2014, Prime Minister Narendra Modi’s government has implemented a number of changes aimed at supporting farmers and strengthening the agriculture sector. He said these measures focus on areas such as MSP, digital agriculture, bio-innovation and permaculture. Total expenditure exceeds $2.18 trillion, these measures underscore the government’s commitment to farmer empowerment and modernization of Indian agriculture.

ALSO READ | Indian farmers face profitability challenge as input costs rise 6.1%, beating MSP growth of 5.36%: Infomerics Ratings

The government has launched the MSP for the kharif crop for the 2024-25 marketing season and announced the price policy for the 2025-26 rabi marketing season. It also launched a clean plant program to promote horticulture and allocated funds $1,766 crore to expand the Agriculture Infrastructure Fund to strengthen agricultural facilities.

To promote sustainable practices, the Prime Minister’s JI-VAN Yojana was introduced to provide financial support to advanced biofuel projects, while the BioE3 initiative focuses on biomanufacturing to achieve economic and environmental benefits. Digital agriculture tasks have been assigned $2,817 crore for digitization of agricultural operations, and $Rs 3,979 crore has been allocated for crop science programs to ensure food and nutrition security. Efforts to strengthen agricultural education and management receive support $2,291 Crore, while $Rs 1,702 crore has been allocated to ensure sustainable livestock health and production.

The government also prioritizes horticulture development $1,125 Crores and Strengthening Krishi Vigyan Kendras (KVKs) $1,202 Crores. Natural Resource Management Received $1,115 crore, and subsidies. $Rs 24,475 crore has been provided for NPK fertilizers under the Nutrient Subsidy (NBS) scheme. Under the leadership of Prime Minister Annadata Aay Sanrakshan Abhiyan (PM-AASHA), $Rs 35,000 crore has been allocated to ensure income of farmers. Additionally, the Prime Minister Rashtriya Krishi Vikas Yojana (PM-RKVY) and Krishnanti Yojana have received a total of over $1 trillion.

ALSO READ | Subsidies and MSP: It makes the most sense for farmers to continue growing rice and wheat

National Edible Oil-Oilseeds Mission Launched $10,103 crore to promote self-reliance in edible oil production. Fortified rice supply plans under all schemes have been allocated $17,082 crore to enhance nutritional security. Strengthening Indian food companies gets support $107 billion, National Natural Farming Mission has received $2,481 crore to encourage permaculture practices.