High production cost: Kerala's benefit from copra MSP down by half in 5 years

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Representative Image | Photo: Ramanath Pai

Kozhikode: Kerala’s profit from the minimum support price of copra (dry coconut kernels) is decreasing each year. The union government announced the MSP with an aim that the farmers will get a margin of profit of at least 50 per cent. When other states are receiving this amount, Kerala is getting only 20 per cent.

In the last five years, Kerala’s margin of profit has decreased by half. The reason for the decrease is the high production cost compared to other states.

In 2019, Kerala’s profit margin was 40 per cent. At the time, the production cost of one quintal copra was Rs 6,763 and the MSP was Rs 9,520. In 2023, the MSP is Rs 10,860 and the production cost stands at Rs 8,996. The production cost went up by Rs 2,233 in five years but the MSP has increased only by Rs 1,340.

The production cost in Andhra Pradesh is Rs 4,636, in Tamil Nadu it is Rs 5,367 and in Karnataka it is Rs 7,133. The national average is Rs 7,153. The Commission for Agricultural Costs and Prices (CACP) recommended the MSP of Rs 10,860 based on this. States with a production cost less than the national average have benefitted from this.

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