Commission for Agricultural Costs and Prices (CACP)

Question 1

What is it?

Answer 1

statutory panel under the Ministry of Agriculture & Farmers’ Welfare, Government of India.
[STATUTORY PANEL UNDER AGRI MINISTRY]

The CACP is an expert body that recommends the MSPs of the notified Kharif and Rabi crops to the Cabinet Committee on Economic Affairs (CCEA).

[CACP RECOMMENDS MSP TO CCEA)

Question 2

Objective?

Answer 2

-established to recommend Minimum Support Prices (MSPs), to motivate cultivators and farmers to adopt the latest technology in order to optimize the use of resources and increase productivity.
[RECOMMEND MSP ; EDUCATE ABOUT NEW TECH.]

-However, its suggestions are not binding on the Government.
[NOT BINDING]

Question 3

Composition?

Answer 3

1. A Chairman
2. Member Secretary
3. One Official Member
4. Two Non-Official Members [FARMERS REPRESENTATIVE EX.RAKESH TIKAIT]

The two non-official members are usually representatives of the farming community and have an active association with the farming community.

Question 4

Roles and Responsibilities of CACP?

Answer 4

-provides an assurance of a remunerative and stable price environment.

-helps the farmers obtain a fair price for their crops, even if the market situation is unstable
[HELP FARMERS TO OBTAIN FAIR PRICE]

-Government sets the MSPs on the basis of the recommendations given by the committee. The CACP currently recommends the MSPs for 23 commodities, which include seven grains, five pulses, seven oilseeds, and four commercial crops.
[MSP BASED ON THEIR RECOMMENDATIONS]

-CACP submits its recommendations to the Government in the form of Price Policy Reports each year.