The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has given its approval for the Minimum Support Prices (MSPs) for Copra for 2016 season. The decision is based on recommendations of Commission for Agricultural Costs and Prices (CACP). CACP, which is an expert body, takes into account the cost of production, overall demand-supply, domestic and international prices, cost of conversion of copra into coconut oil, the likely effect of the Price Policy on the rest of economy, besides ensuring rational utilization of production resources like land and water, while recommending MSPs.

The Minimum Support Price (MSP) for Fair Average Quality (FAQ) of “Milling Copra” has been increased to ₹ 5950/- per quintal for 2016 season from ₹ 5550/- per quintal in 2015. Also, the MSP for FAQ of “Ball Copra” has been increased to ₹ 6240/- per quintal for 2016 season from ₹ 5830/- per quintal in 2015. The 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 in the country.

The National Agricultural Cooperative Marketing Federation of India Limited (NAFED) and National Cooperative Consumer Federation of India Limited (NCCF) would continue to act as Central Nodal Agencies to undertake price support operations at the Minimum Support Prices in the Coconut growing states.

Besides increase in Minimum Support Prices (MSP) for Copra, Government has taken several other farmer friendly initiatives over the last one year. These, inter-alia, include the following:

A new crop Insurance scheme for farmers’ welfare, namely, the ‘Pradhan Mantri Fasal Bima Yojana’ has been introduced under the scheme, there will be a uniform premium of only 2% to be paid by farmers for all Kharif crops and 1.5% for all Rabi crops. In case of annual commercial and horticultural crops, the premium to be paid by farmers will be only 5%.There is no upper limit on Government subsidy.

Government has also created portal on crops insurance in order to keep farmers better informed.

A Scheme to issue Soil Health Card to every farmer has been introduced. Soil health management in the country is being promoted through setting up of soil & fertilizer testing laboratories and implementation of organic f Government has also framed guidelines under Paramparagat Krishi Vikas Yojna (PKVY) to promote organic farming and develop potential market for organic products.

The Pradhan Mantri Krishi Sinchai Yojana, has been launched with the objective of creating sources of assured irrigation.

A dedicated Kisan Channel has been started by the Doordarshan to address various issues concerning farmers.

An initiative is being taken to set up a National Agriculture Market (NAM). This would enable farmers to overcome the impediments in marketing of agricultural produce and get better price discovery. A common e-market platform is being created and would be provided free of cost to the States/UTs that undertake to introduce a single license for trading in the whole state, a single point levy of market fee and permit e-trading Government is also encouraging formation of Farmer Producer Organisations.

Minimum Support Price for Copra raised; procurement and price support to be managed by central nodal agencies alongside farmer schemes. Approval of revised Minimum Support Prices for copra for the 2016 season was announced, based on Commission for Agricultural Costs and Prices recommendations that account for production costs, demand-supply and conversion costs; designated central nodal agencies will undertake price support operations to provide minimum price protection and encourage investment in coconut cultivation and productivity.