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The Cabinet Committee on economic affairs, headed by the prime minister, has given its approval for the hike in milling copra by Rs. 375/per quintal and ball copra by Rs. 300/per quintal. Now, the MSP of milling copra is 52% higher than its production cost, where the MSP of ball copra is 55% higher than its production cost.
The MSP for fair average quality milling copra is increased to Rs. 10,335 per quintal and the MSP of ball copra is increased to Rs, 10,600 per quintal for the 2021 season.
Copra is grown in 12 coastal states of India. India is the largest producer of Copra in the world. This step is taken to further boost the farmer's income. The central nodal agencies to undertake price support operations in coastal states are the National Agriculture Cooperative Marketing Federation of India Ltd. (NAFED) and the National Cooperative Consumer Federation of India Ltd. (NCCF). When the market prices are lower than the MSP, the government buys the stocks to safeguard the interests of the farmers.