Examkin

Question

Difficulty: EasyAgriculture Sector Economics, Land Reforms, Subsidies, and Public Distribution System

Which administrative body in India is mandated to evaluate production costs and recommend the Minimum Support Prices (MSPs) for major agricultural crops?

  1. Commission for Agricultural Costs and Prices (CACP)Answer
  2. B
    Cabinet Committee on Economic Affairs (CCEA)
  3. C
    National Institution for Transforming India (NITI Aayog)
  4. D
    Food Corporation of India (FCI)

Answer

Commission for Agricultural Costs and Prices (CACP)
The Commission for Agricultural Costs and Prices (CACP) is the specialized body under the Ministry of Agriculture and Farmers Welfare responsible for formulating and submitting price policy reports to recommend Minimum Support Prices for 22 mandated crops and Fair and Remunerative Price (FRP) for sugarcane.

Step-by-Step Solution

1
Identify the mandate for recommending agricultural support prices in India.
The Commission for Agricultural Costs and Prices (CACP) analyzes factors such as cost of cultivation, market demand-supply trends, and inter-crop price parity to recommend MSPs.
CACP is the specialized advisory body established specifically to submit price policy reports for mandated agricultural commodities.
2
Distinguish between the recommending authority and the approving authority.
CACP recommends the prices, whereas the Cabinet Committee on Economic Affairs (CCEA) approves and announces the final MSP values.
Understanding institutional division of labor prevents confusing advisory bodies with executive approval cabinets.

Key Concept

Institutional Framework of Minimum Support Price (MSP) Determination
Rate this question

Topics

Agriculture Sector Economics, Land Reforms, Subsidies, and Public Distribution System