Question

Q. With reference to the Commission for Agricultural Costs and Prices (CACP), which of the following statements is/are correct?

Select the correct answer using the codes given below:

• A.
  1 and 2 only
• B.
  2 only
• C.
  1 and 3 only
• D.
  1, 2 and 3

Answer 1

The correct option is A

1 and 2 only
Explanation:

Statement 1 is correct: The Commission for Agricultural Costs and Prices (CACP) is an attached office of the Ministry of Agriculture and Farmers Welfare, Government of India.

Statement 2 is correct: It is mandated to recommend minimum support prices (MSP) 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. As of now, CACP recommends MSPs of 23 commodities every year in the form of Price Policy Reports.

Statement 3 is incorrect: The central government circulates CACP reports to states and concerned Central Government Ministries. Based on their feedback, the Cabinet Committee on Economic Affairs (CCEA) of the Union Government takes a final decision on the level of MSPs and other recommendations of CACP. Hence, the recommendations of CACP are not binding.