New Delhi, Dec 22 (IANS): The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday gave its approval to an increase in the minimum support price (MSP) for copra for 2022 season.

The MSP for fair average quality (FAQ) of milling copra has been increased to Rs 10,590 per quintal for 2022 season from Rs 10,335 per quintal in 2021 and the MSP for ball copra has been increased to Rs 11,000 per quintal for 2022 season from Rs 10,600 per quintal in 2021.

This is to ensure a return of 51.85 per cent for milling copra and 57.73 per cent for ball copra over the pan India weighted average cost of production. The increase in MSP for copra for 2022 season is in line with the principle of fixing the MSP at a level of at least 1.5 times the all India weighted average cost of production as announced in the budget 2018-19, a release from the Agriculture Ministry said.

The decision is based on recommendations of the Commission for Agricultural Costs and Prices (CACP).

It assures a minimum of 50 per cent as margin of profit as one of the important and progressive steps towards making possible doubling of farmers' incomes by 2022.

The National Agricultural Cooperative Marketing Federation of India Ltd and National Cooperative Consumer Federation of India Ltd will continue to act as Central nodal agencies to undertake price support operations at the MSP in the coconut growing states, the release added.