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Mar
16

Centre hikes MSP for copra

Centre has recently increased the Minimum Support Price (MSP) for the million copra variety at Rs 9960 per quintal for the 2020 season over the previous season. The hike is of around 4.61 percent which has bring cheers to the producers and the processing industry in Kerala and Tamil Nadu. However, the producers of ball copra variety in Karnataka are disappointed with the 3.83 percent increase at Rs 10,300 a quintal. As per the Thalath Mahmood, president of Cochin Oil Merchants Association (COMA), the decision would benefit coconut farmers. At present, the procurement price in Kerala is on the higher side with Kerafed procuring copra at Rs 107 per kg. On the contrary, as per the sources, the MSP hike would not make any major impact because of higher prices of copra in Kerala which is ruling high at Rs 105 per kg (Rs 10,500 per quintal), while it was above Rs 9,500 in Tamil Nadu. But the government support would ensure that there would not be any further crash in prices and the rates would expected to hover in the range of Rs 10,000 per quintal even in the peak production period. The milling copra production is estimated approximately at 10 lakh tonnes last year, while ball copra at 3 lakh tonnes. Ball copra prices are hovering around MSP levels at Rs 10,000 in the Tiptur market of Karnataka, the main producing region. Ball copra is mainly used for edible consumption and is considered in the dry fruit category, while milling copra is mainly used to extract coconut oils.