Karnataka State Cooperative Marketing Federation would set up procurement centres for copra from Wednesday, said Horticulture Minister Shamanur Shivashankarappa.
Replying to a call attention motion moved by Shivalinge Gowda of the JD(S) in the state Assembly on Friday on lakhs of coconut trees drying up in 19 districts as well as the fall in the price of copra, the minister said National Agricultural Cooperative Marketing Federation has given permission to open purchase centres to buy copra at Rs 5,500 per quintal.
He also said following a demand from farmers and elected representatives to hike the procurement price, a Cabinet sub-committee would discuss the additional incentive and place it before the Cabinet for its approval. The government is committed to protect the interest of farmers, he added.
He said that although the Centre had announced a Minimum Support Price of `5,500 per quintal on February 18, the NAFED declined to open the procurement centres saying that it would incur loss if it was more than 15 percent. The government wrote to NAFED to start the procurement process following fall in the price of copra below the MSP.