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With regard to the Commission for agricultural costs and Prices (CACP) which of the given statements is FALSE? 1. CACP was established with a view to evolve a balanced and integrated structure and is mandated to advice on the price policy (MSP) of 23 crops 2. CACP submits its recommendation in the form of price policy reports every year

With regard to the Commission for agricultural costs and Prices (CACP) which of the given statements is FALSE? 1. CACP was established with a view to evolve a balanced and integrated structure and is mandated to advice on the price policy (MSP) of 23 crops 2. CACP submits its recommendation in the form of price policy reports every year Correct Answer None of the given options

  • The Commission for Agricultural Costs & Prices (CACP) is an attached office of the Ministry of Agriculture and Farmers Welfare, Government of India.

  • It came into existence in January 1965. It is mandated to recommend minimum support prices (MSPs) to incentivize the cultivators to adopt modern technology and raise productivity and overall grain production in line with the emerging demand patterns in the country. 

  • Towards this end, MSP for major agricultural products is fixed by the government, each year, after taking into account the recommendations of the Commission.
    As of now, CACP recommends MSPs of 23 commodities, which comprise 7 cereals (paddy, wheat, maize, sorghum, pearl millet, barley and ragi), 5 pulses (gram, tur, moong, urad, lentil), 7 oilseeds (groundnut, rapeseed-mustard, soyabean, seasmum, sunflower, safflower, nigerseed), and 4 commercial crops (copra, sugarcane, cotton and raw jute).

  • CACP submits its recommendations to the government in the form of Price Policy Reports every year, separately for five groups of commodities namely Kharif crops, Rabi crops, Sugarcane, Raw Jute and Copra. Before preparing aforesaid five pricing policy reports, the Commission draws a comprehensive questionnaire and sends it to all the state governments and concerned National organizations and Ministries to seek their views.

  • Subsequently, separate meetings are also held with farmers from different states, state governments, National organizations like FCI, NAFED, Cotton Corporation of India (CCI), Jute Corporation of India (JCI), trader's organizations, processing organizations, and key central Ministries. The Commission also makes visits to states for on-the-spot assessment of the various constraints that farmers face in marketing their produce, or even raising the productivity levels of their crops. Based on all these inputs, the Commission then finalizes its recommendations/reports, which are then submitted to the government.

  • The government, in turn, circulates the CACP reports to state governments and concerned central Ministries for their comments. After receiving the feed-back from them, the Cabinet Committee on Economic Affairs (CCEA) of the Union government takes a final decision on the level of MSPs and other recommendations made by CACP. Once this decision is taken, CACP puts all its reports on the web site for various stakeholders to see the rationale behind CACP's price and non-price recommendations.

  • Hence, both the statements are correct.

Related Questions

Commission for Agriculture Costs and Prices (CACP) submits its recommendation for MSPs of agricultural commodities in form of Price Policy Reports. Consider the following statements: 1. CACP is a statutory body formed under Agriculture Price Commission Act, 1962. 2. Currently MSP is devoid of any legal backing except for Sugarcane to some extent. 3. Before submitting a Price Policy Report for any crop, CACP also analyses demand and supply and the implications of MSP on consumers of that product along with the costs of production. Which among the following statements is/are incorrect?
Consider the following statements with respect to Minimum Support Price (MSP): 1. MSP is computed on the basis of the recommendations made by the Commission for Agricultural Costs and Prices (CACP). 2. Currently tea is covered under the MSP. 3. MSP for food grains is always kept necessarily higher than the market price of the grains. Which of the statements given above is/are correct?
Commission for ‘Agricultural Costs and Prices’ (CACP) submits its recommendations on MSP in the form of Price Policy Reports every year, separately for five groups of commodities. Which of the following is not one of those group of commodities?
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Which of the following factors are considered by Commission for ‘Agricultural Costs and Prices’ (CACP) while determining MSP for crops? I. Price trend in the domestic and international markets. II. Inter-crop price parity. III. Terms of trade between agricultural and non-agricultural sectors. IV. Cost of production.
Which of the following factors are considered by the 'Commission for Agricultural Costs and Prices (CACP) while determining Fair and Remunerative Price (FRP) for sugarcane? I. Availability of sugar to consumers at a fair price. II. Price at which sugar produced from sugarcane is sold by sugar producers. III. Recovery of sugar from sugarcane. IV. Return to the growers from alternative crops and the general trend of prices of agricultural commodities
A statement is given below in the question followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the following suggested courses of actions logically follow(s) for pursuing. Statement: Hindustan Unilever and Nestlé plan to selectively increase prices of their products to take into account higher crude oil and petrol costs, the rupee’s depreciation against the dollar and more expensive commodities such as wheat. If crude remains where it is and if the rupee has depreciated, of course, there are headwinds as far as costs are concerned. I. Nestlé India’s logistics providers are looking to renegotiate rates after record-high petrol and diesel prices. Nestlé declined to comment on when and by how much prices would increase.  II. Nestlé commented that HUL had dropped prices in November after the Goods & Services Tax was introduced last year and an increase in prices now would likely not hurt consumers.  III. Petrol prices have crossed Rs 90 a litre in Mumbai on increasing global prices of crude oil, of which India is a net importer, further impacted by the falling rupee. Crude derivatives, which are key inputs for FMCG companies, and petroleum derivatives used in packaging material including bottles and tubes, have also become more expensive.
Regarding the new MSP of Paddy declared by the Government in July 2018, which of the following statements are correct? 1. MSP of Paddy (Common Grade) has been increased by Rs. 200/- per quintal and of Grade A variety by Rs. 160/- per quintal. 2. MSP of Paddy (Common Grade) has been increased by Rs. 160/- per quintal and of Grade A variety by Rs. 200/- per quintal. 3. The new MSP of Paddy (Common Grade) and Grade A variety is Rs. 1750/- per quintal. 4. The new MSP of Paddy (Common Grade) is Rs. 1750/- per quintal and of Grade A is Rs. 1770/- per quintal.
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The Agricultural Price Commission was set up to evolve balanced and integrated price structure in the year