Govt approves minimum support price for coconut for 2021 season
The Council of Ministers for Economic Affairs (CCEA) meeting chaired by Prime Minister Shri Narendra Modi has approved the Minimum Support Price (MSP) for coconut for the 2021 season.
The minimum support price (MSP) for coconut variety with Fair Average Quality (FAQ) suitable for milling for the 2021 season has been increased by Rs 375 to Rs 10,335 per quintal. In 2020, the MSP for this type of coconut was Rs 9,960 per quintal. Shaved coconut MSP has also been increased by Rs 300 per quintal for the 2021 season to Rs 10,600 per quintal. In 2020, the MSP for this type of coconut is Rs 10,300 per quintal. The declared price guarantees a return of 51.87 per cent for mill coconut and 55.76 per cent higher for shaved coconut as compared to the average production cost at the all-India level.
Based on the recommendations of the Agricultural Expenditure and Prices Commission (CACP), this measure was approved.
The increase in MSP per coconut taluk for the 2021 season is in line with the principle announced by the government in the 2018-19 budget that MSP should be at least 1.5 times higher than the All India GDP.
Guaranteeing a profit of at least 50 per cent in the direction of doubling farmers’ incomes by 2022 is an important, progressive step.
The National Agricultural Cooperative Marketing Federation of India Limited (‘NAFED’) and the National Cooperative Consumer Federation of India Limited (NCCF) have a centralized role in implementing MSP in the coconut growing states.
By the 2020 season, the government has procured 5053.34 tonnes of shaved coconut and 35.58 tonnes of milled coconut, benefiting 4896 coconut farmers.