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Context: The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, has approved the Minimum Support Prices (MSPs) for Copra for the 2024 season. The decision is in line with the government's commitment to fixing MSPs at a level of at least 1.5 times the all-India weighted cost of production, as announced in the Union Budget of 2018-19.

MSP Announcement for 2024 Season

• The MSP for Fair Average Quality of milling copra has been set at Rs.11,160 per quintal.
• The MSP for ball copra has been fixed at Rs.12,000 per quintal.
• These prices are in line with the government's commitment to fixing MSPs at a level of at least 1.5 times the all-India weighted cost of production for all mandated crops.

Margin and Cost of Production

• The MSPs ensure a margin of 51.84% for milling copra and 63.26% for ball copra.
• These margins are well beyond the 1.5 times the all-India weighted average cost of production.

Usage of Copra

• Milling copra is used to extract oil.
• Ball/edible copra is consumed as a dry fruit and used for religious purposes.

Major Producers

• Kerala and Tamil Nadu are major producers of milling copra.
• Karnataka is a predominant producer of ball copra.

Role of Central Nodal Agencies

• The National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) and the National Cooperative Consumers’ Federation (NCCF) will continue to act as Central Nodal Agencies (CNAs) for the procurement of copra and de-husked coconut under the Price Support Scheme (PSS).

Impact on Coconut Growers

• The higher MSP is expected to ensure better remunerative returns for coconut growers.
• It is also anticipated to incentivize farmers to expand copra production to meet the growing demand for coconut products, both domestically and internationally.

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MINIMUM SUPPORT PRICES (MSP): https://iasgyan.in/daily-current-affairs/minimum-support-prices-msp-17

PRACTICE QUESTION Q. What factors influence the establishment of Minimum Support Prices (MSP) for agricultural products, and how do these prices impact farmers and the overall agricultural economy?