Every year, the Government of India, based on the recommendation of the Commission for Agricultural Costs and Prices (CACP), declares MSP for various agricultural crops, which also include copra.
For crops like paddy, ragi and pulses, the Centre has fixed the MSP at 150 per cent of the cost of cultivation.
For the 2018 copra season, the Centre has declared Rs 75.11 per kg as MSP for milling copra.
However, in the major copra markets of Tamil Nadu, Kerala and Karnataka, the present market price is ranging between Rs 90 and Rs 110 per kg and the same trend is expected to continue till the end of the season.
Initially, the Tamil Nadu government had suggested an MSP of Rs 90 per kg for milling copra for the 2018 copra season after taking various factors, like area, production, pest and disease infestation, cost of cultivation, demand and supply, etc, into consideration. However, as highlighted by the state government, the present market rate stands between Rs 90 and Rs 110 per kg in leading copra markets in Tamil Nadu, Kerala and Karnataka.
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The agmarknet.gov.in portal shows that the market price in neighbouring states also ranges above Rs 100 per kg and is even as high as Rs 160 per kg in some markets like Tumkur in Karnataka.