Govt approves ₹11,582 MSP for milling copra to boost farmers’ income, financial implication estimated at ₹855 crore

New Delhi: The Cabinet Committee on Economic Affairs on Friday increased the minimum support price (MSP) for milling copra for the 2025 marketing season by ₹425 per quintal, bringing it to ₹11,582 per quintal. The MSP for ball copra was raised by ₹100 per quintal, to ₹12,100 per quintal. 

The total financial implication of this decision is estimated at ₹855 crore, said Union minister for information and broadcasting Ashwini Vaishnaw following the Cabinet meeting.

Milling copra is a dried piece of coconut that is used to make coconut oil. Ball copra is the edible dried kernel of a coconut.

Since 2014, the MSP for milling copra has increased from ₹5,250 per quintal to ₹11,582 per quintal, registering a growth of 121%. Similarly, the MSP for ball copra has risen from ₹5,500 per quintal to ₹12,100 per quintal, representing a growth of 120%.

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This significant increase aims to ensure better remunerative returns for coconut growers and incentivize them to expand copra production to meet the growing demand for coconut products both in domestic and international markets, the minister said.

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

The National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) and the National Cooperative Consumers’ Federation (NCCF) will continue to function as Central nodal agencies for the procurement of copra and de-husked coconut under the Price Support Scheme (PSS), the minister said.

After taking office in June 2014, Prime Minister Narendra Modi’s government has implemented several transformative initiatives aimed at supporting farmers and strengthening the agricultural sector, the minister said. These measures focus on areas such as MSP, digital agriculture, bio-innovation and sustainable farming, he said. With a total outlay exceeding ₹2.18 trillion, these initiatives highlight the government’s commitment to empowering farmers and modernizing Indian agriculture.

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The government has introduced the MSP for kharif crops for the 2024-25 marketing season and announced a price policy for the 2025-26 rabi marketing season. It has also launched the Clean Plant Programme for the development of horticulture with an allocation of ₹1,766 crore and expanded the Agriculture Infrastructure Fund to enhance agricultural facilities.

To promote sustainable practices, the PM JI-VAN Yojana has been introduced to provide financial support to advanced biofuel projects, while the BioE3 initiative focuses on biomanufacturing for economic and environmental benefits. The Digital Agricultural Mission has been allocated ₹2,817 crore to digitize farming operations, and ₹3,979 crore has been set aside for crop science programs to ensure food and nutritional security. Efforts to strengthen agricultural education and management have been supported with ₹2,291 crore, while ₹1,702 crore has been allocated to ensure sustainable livestock health and production.

The government has also prioritized horticulture development with ₹1,125 crore and the strengthening of Krishi Vigyan Kendras (KVKs) with ₹1,202 crore. Natural resource management has received ₹1,115 crore, and a subsidy of ₹24,475 crore has been provided for NPK fertilizers under the Nutrient-Based Subsidy (NBS) scheme. Under the PM Annadata Aay Sanrakshan Abhiyan (PM-AASHA), ₹35,000 crore has been allocated to secure income for farmers. Additionally, the PM Rashtriya Krishi Vikas Yojana (PM-RKVY) and Krishonnati Yojana have received a combined allocation of just over ₹1 trillion.

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The National Mission on Edible Oils-Oilseeds has been introduced with ₹10,103 crore to promote self-reliance in edible oil production. The fortified rice supply programme under all schemes has been allocated ₹17,082 crore to enhance nutritional security. Strengthening the Food Corporation of India has been supported with ₹10,700 crore, and the National Mission on Natural Farming has received ₹2,481 crore to encourage sustainable agricultural practices.