New Delhi, Jan 27 (IANS): The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday approved the hike of the Minimum Support Price (MSP) for milling copra and ball copra by Rs 375 and Rs 300, respectively, for the 2021 season.

The MSP for Fair Average Quality of milling copra has been increased by Rs 375, to Rs 10,335 per quintal for 2021 from Rs 9,960 per quintal in 2020, an official statement said.

The MSP for ball copra has been increased by Rs 300, to Rs 10,600 per quintal for 2021 season from Rs 10,300 per quintal in 2020.

The declared MSP ensures a return of 51.87 per cent for milling copra and 55.76 per cent for ball copra over the all-India weighted the average cost of production.

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

The increase in MSP for copra for 2021 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 which was announced by the government in the Budget 2018-19, the Agriculture and Farmers Welfare Ministry statement said.

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, it said.

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

For the 2020 season, the government has procured 5,053.34 tonnes of ball copra and 35.58 tonnes of milling copra benefiting 4,896 copra farmers, as per the statement.