Economics • Indian EconomyHard
Examine the role of the 'Commission for Agricultural Costs and Prices (CACP)' in India's agricultural policy framework. Which of the following statements regarding its recommendations is correct?
A. It recommends Minimum Support Prices for mandated crops, while the final pricing decisions are taken by the Cabinet Committee on Economic Affairs✓ Correct Answer
B. It legally enforces statutory minimum prices that private traders must pay to farmers in agricultural produce market committees
C. It operates as a judicial tribunal resolving inter-state agricultural land acquisition disputes
D. It directly procures foodgrains from farmers through state cooperative marketing federations
💡 Solution & Explanation
The Commission for Agricultural Costs and Prices is an attached office of the Ministry of Agriculture and Farmers Welfare that recommends Minimum Support Prices for specified crops based on comprehensive cost structures, market trends, and supply-demand balances. However, these recommendations are advisory; the final decision regarding MSP declaration rests with the Cabinet Committee on Economic Affairs. Procurement operations are subsequently executed by agencies like the Food Corporation of India.
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