The Government has hiked the minimum support price (MSP) of copra by Rs 150 a quintal for the 2013 season over last year.
The Cabinet Committee on Economic Affairs on Thursday approved the (MSP) hike for fair average quality (FAQ) milling copra to Rs 5,350 per quintal and ball copra to Rs 5,500 per quintal, an official statement said.
The increase in copra MSP is expected to encourage farmers to step-up investment in coconut cultivation and thereby production and productivity, the Government said.
National Agricultural Cooperative Marketing Federation of India Ltd (Nafed) would continue to act as the nodal agency to undertake price support operations in the coconut-growing states.
Coconut is grown in a total area of over 19 lakh hectares in States such as Kerala, Tamil Nadu, Andhra Pradesh and Karnataka. It is also grown in Assam, Maharashtra, Odisha, West Bengal, Goa, Andaman and Nicobar Islands, Lakshadweep and Puducherry.