Economics • Indian EconomyHard
In the framework of India's agricultural policy, what characterizes the 'Commission for Agricultural Costs and Prices (CACP)' recommendations regarding Minimum Support Prices?
A. Its price recommendations are legally binding on all private grain traders operating in agricultural mandis
B. It recommends minimum support prices for specified crops based on comprehensive cost structures, though implementation is managed by government procurement agencies✓ Correct Answer
C. It fixes statutory export quotas for surplus food grains produced in surplus agrarian states
D. It operates as a judicial tribunal resolving inter-state agricultural land and water disputes
💡 Solution & Explanation
The Commission for Agricultural Costs and Prices recommends Minimum Support Prices for mandated agricultural crops based on factors like cost of production, market trends, and inter-crop price parity, while actual procurement is undertaken by agencies like the Food Corporation of India. These recommendations are advisory to the central government, which takes the final decision on announcement. Statutory backing for MSP remains a subject of ongoing policy discussion among agrarian economists.
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