Economics • Indian EconomyMedium
What is the main mandate of the 'Commission for Agricultural Costs and Prices (CACP)' in India?
A. To enforce maximum retail prices on fertilizers and agricultural pesticides nationwide.
B. To recommend Minimum Support Prices (MSPs) for various agricultural commodities to incentivize crop production.✓ Correct Answer
C. To procure food grains directly from farmers through state-level cooperative societies.
D. To fix export quotas and duties on major agricultural cash crops.
💡 Solution & Explanation
The Commission for Agricultural Costs and Prices is a decentralized expert body that operates under the Ministry of Agriculture and Farmers Welfare and recommends Minimum Support Prices for major agricultural commodities. It formulates pricing policies to incentivize cultivators to adopt modern technology and enhance crop production without directly engaging in physical procurement or price enforcement. Other choices describe functions handled by food procurement agencies like the Food Corporation of India. Understanding agricultural policy bodies is essential for Indian economic surveys.
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