**Executive Summary**
This document presents the response by the Minister of State for Agriculture and Farmers Welfare to Unstarred Question No. 379 regarding the crisis faced by farmers in Kerala, to be answered on December 2nd, 2025. It outlines existing government policies and actions related to minimum support prices, subsidies, import policies, and insurance schemes for farmers in Kerala, particularly concerning coconut, rubber and spice production.
**Key Points / Main Content**
* **Minimum Support Price (MSP):**
* The government fixes MSP for 22 mandated crops based on the recommendations of the Commission for Agricultural Costs and Prices (CACP) and views of State Governments and Central Ministries/Departments concerned.
* MSP covers Ball Copra and Milling Copra.
* Inclusion of other crops under MSP depends on factors like shelf life, perishability, consumption, and food security importance.
* **Subsidies for Coconut Cultivation:**
* The subsidy under the "Expansion of Area under Coconut" program has increased eightfold, from ₹6,500/ha to ₹56,000/ha, starting from 2025-26.
* **Import/Export Policy:**
* Export of coconut products has increased (25.35% hike in export value at Rs.4349.03 crores in the previous year).
* Import of Copra and Coconut Oil is regulated under Advance Authorization.
* Import of Desiccated Coconut is permitted with a Minimum Import Price of Rs.150/kg.
* **Insurance Schemes:**
* The Coconut Development Board, with the State Government and Agriculture Insurance Company of India, implements the Coconut Palm Insurance Scheme to insure coconut palms against natural perils.
* Coconut palm is included under the Restructured Weather Based Crop Insurance Scheme (RWBCIS) implemented by the Department of Agriculture, Cooperation and Farmers Welfare, MoAFW, and has already commenced in Kerala.
**Impact Analysis**
**Kerala Farmers**
* **Impact:** Farmers producing coconut, rubber, spices, and other crops in Kerala are impacted by the government's policies on MSP, subsidies, import regulations, and insurance schemes. Increased subsidies and the insurance scheme could improve farmer incomes and resilience to losses from natural disasters.
* **Action Required:** Farmers should familiarize themselves with the details of the enhanced "Expansion of Area under Coconut" program and the Coconut Palm Insurance Scheme to avail of the benefits.
**State Government of Kerala**
* **Impact:** The State Government is involved in the process of fixing MSP for mandated crops and is a partner in the implementation of Coconut Palm Insurance Scheme, impacting the financial burden and agricultural policies of the state.
* **Action Required:** The State Government must provide its views to the Commission for Agricultural Costs and Prices (CACP) regarding MSP and actively collaborate with the Coconut Development Board and the Agriculture Insurance Company of India to implement and promote the Coconut Palm Insurance Scheme.
Key Entities Referenced
Minimum Support Price (MSP): A price fixed by the Government to purchase crops from farmers to safeguard them from price fluctuations.
Ministry of Agriculture and Farmers Welfare: The central government ministry responsible for agricultural development and farmer welfare.
Commission for Agricultural Costs and Prices (CACP): An advisory body that recommends Minimum Support Prices (MSP) for various crops.
Kerala: The Indian state where farmers are facing a crisis related to coconut, rubber, and spice prices.
Coconut palm Insurance Scheme: An insurance scheme to protect coconut palms against natural disasters.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 379
TO BE ANSWERED ON THE 02ND DECEMBER, 2025
CRISIS OF FARMERS IN KERALA
379. SHRI N K PREMACHANDRAN:
Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ(cid:874)ष एव ं (cid:873)कसान क(cid:227)याण
मं(cid:287)ी be pleased to state:
(a) whether the Union Government has anlaysed the crisis of coconut, rubber spices and
other farmers in Kerala due to lack of minimum support price, if so, the details of action
taken to resolve the issue;
(b) whether the Government proposes to provide adequate support price to crops grown
in Kerala like coconut, rubber spices etc., if so, the details thereof;
(c) whether the Government proposes to provide more subsidies to farmers in Kerala;
(d) whether the Government proposes to revise the liberal import policy so as to protect
the domestic price of agricultural products like rubber, pepper, coconut etc, if so, the
details thereof; and
(e) whether the Government has initiated action to give adequate compensation to the
farmersfor their loss due to floods, droughts and other natural calamities, if so, the details
thereof?
ANSWER
THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
कृ िष एवं िकसान क(cid:670)ाण रा(cid:475)मं(cid:361)ी (SHRI RAMNATH THAKUR)
(a) & (b): Government fixes Minimum Support Price (MSP) for 22 mandated crops
including Ball Copra and Milling Copra, on the basis of the recommendations of the
Commission for Agricultural Costs and Prices (CACP) & views of State Governments and
Central Ministries/Departments concerned.However, inclusion of crops under MSP framework is dependent on several factors
which include relatively large shelf life, non- perishable, widely grown, item of mass
consumption, essential for food security, among others.
(c): From the year 2025–26 onwards, the subsidy under the “Expansion of Area under
Coconut” programme has been enhanced eightfold from ₹6,500/ha to ₹56,000/ha which
will significantly support farmers in bringing new areas under coconut cultivation.
(d): The export of coconut products has been increasing over the years and during the
previous year there was 25.35% hike in export value at Rs.4349.03 crores. Import of
Copra and Coconut Oil is regulated under Advance Authorization. The import of
Desiccated Coconut is also permitted with a Minimum Import Price of Rs.150/kg. Thus
the import policy for coconut products safeguards the domestic coconut sector.
(e): Coconut Development Board in association with State Government and Agriculture
Insurance Company of India, is implementing Insurance scheme for coconut palms viz
Coconut palm Insurance Scheme. Main objective of the scheme is to insure coconut
palms against natural and other perils with a view to compensate the farmer in case of
loss/death of palms.
Further, Coconut palm has been included under Restructured Weather Based
Crop Insurance Scheme (RWBCIS) implemented by Department of Agriculture,
Cooperation and Farmers Welfare, MoAFW. This scheme has already commenced in the
state of Kerala.
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