New Delhi, Dec 28 (IANS): The government has approved an increase in the minimum support price (MSP) for milling copra and ball copra to Rs 9,521 and Rs 9,920 per quintal, respectively, to boost coconut cultivation, said an official on Friday.

The decision was taken at the Cabinet Committee on Economic Affairs (CCEA) meeting chaired by Prime Minister Narendra Modi on Friday.

"The CCEA has given its approval for increase in the MSP for fair average quality (FAQ) of milling copra to Rs 9,521 per quintal for 2019 season from Rs 7,511 per quintal in 2018.

"And, the MSP of ball copra has been increased to Rs 9,920 per quintal for 2019 season from Rs 7,750 per quintal in 2018," an official release said.

According to the government, the revised MSP of copra is expected to ensure appropriate minimum prices to the farmers and step up investment in coconut cultivation and thereby production and productivity in the country.

It said the approval was based on recommendations of the Commission for Agricultural Costs and Prices (CACP).

CACP, an expert body, while recommending the MSPs takes into account the cost of production, trends in the domestic and international prices of edible oils, overall demand and supply of copra and coconut oil, cost of processing of copra into coconut oil and the likely impact of the recommended MSPs on the consumers.

Milling copra is used to extract oil, while edible grade of copra (ball copra) is consumed as a dry fruit and used for religious purposes.

The National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) and the National Cooperative Consumer Federation of India Ltd (NCCF) would continue to act as the central nodal agencies to undertake price support operations at the MSP in the coconut growing states.