Govt approves hike in MSP for Copra
The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Narendra Modi has approved the Minimum Support Prices (MSPs) for milling copra and ball copra.
Key Facts
- The government has increased the MSP of copra by ₹375 from 2020.
- Thus, the Copra would cost ₹10,335 per quintal and contributes in boosting the farmers’ income.
- This hike in MSP for copra will be impacting the farmers of 12 coastal states.
- MSP of both milling and ball copra have been increased.
- Cost of production for both the variants of copra is Rs. 6,800. The government will be giving 52% and 55% more than the cost of production.
- The increase in the MSP was in line with the recommendations of the Swaminathan.
Minimum support price (MSP)
MSP is an agricultural product price which is set by the Government of India. On this price, the government purchases the commodities directly from the farmer. The MSP is not enforceable by law. MSP seeks to safeguard the farmer interest by providing them a minimum profit for their harvest in case the open market has lesser price than the actual cost incurred. The price of the 23 commodities is set by the government twice a year. The MSP is fixed based on the recommendations of the Commission for Agricultural Costs and Prices (CACP). CACP sets the price since 2009 on the basis of cost of production, demand & supply, price fluctuations, market price trends, international market prices and agricultural wage rate.
List of Commodities for which MSP is set
A total of 23 commodities are covered by the MSP. They are:
Among Cereals– Paddy, Maize, Wheat, Barley, Sorghum, Pearl millet and Ragi.
Among Pulses-Chickpea or Gram, Moong, Tur, Urad and Lentil.
Among Oilseeds– Peanut, Rapeseed, Sesame, Soyabean, Sunflower Safflower, Niger seed and
Among Commercial crops– Copra, Cotton, Sugarcane and Raw jute.
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Month: Current Affairs - January, 2021