The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has given its approval for increase in the Minimum Support Price (MSP) for Fair Average Quality (FAQ) of "Milling Copra" has been increased to ₹ 9521/- per quintal for 2019 season from ₹ 7511/-per quintal in 2018 and the MSP of "Ball Copra" has been increased to ₹ 9920/- per quintal for 2019 season from ₹ 7750/- per quintal in 2018.

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 approval is based on recommendations of Commission for Agricultural Costs and Prices (CACP). CACP, an expert body, which takes into account the cost of production, trends in the domestic and international prices of edible oils, overall demand and supply of copra and coconut oil, cost of processing of copra into coconut oil and the likely impact of the recommended MSPs on consumers, while recommending the MSPs.

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.

Minimum Support Price increase for copra announced to secure farmer returns and mandate price support operations. Approval increases the Minimum Support Price for milling (FAQ) and ball copra for the 2019 season to provide a price floor aimed at ensuring minimum returns to farmers and encouraging investment in coconut cultivation. Implementation requires price support operations by designated central nodal agencies in coconut growing states, and the increase is based on expert recommendations considering cost of production, edible oil market trends, demand supply conditions, processing costs and consumer impact.