The Commission for Agricultural Costs and Prices (CACP) is a decentralized advisory body of the Government of India, attached to the Ministry of Agriculture & Farmers Welfare. It was established in 1965 as the Agricultural Prices Commission and was given its present name in 1985.
CACP performs several important functions related to agricultural pricing policies. Here are some of its key functions:
Minimum Support Price (MSP) Recommendations: CACP assesses the cost of production for various agricultural commodities. It recommends Minimum Support Prices (MSP) based on the cost of production, ensuring a fair and remunerative price for farmers.
Fair and Remunerative Prices (FRP): In India, the government sets Fair and Remunerative Prices (FRP) for the sugarcane industry based on the recommendations of the Commission for Agricultural Costs and Prices (CACP).
Price Policy Formulation: CACP advises the government on the formulation of agricultural pricing policies. It considers factors such as input costs, market conditions, and international prices to recommend pricing strategies.
Market Intervention: CACP provides recommendations on market intervention measures to stabilize prices and protect the interests of both farmers and consumers.
Monitoring Price Trends: CACP monitors price trends and analyses market conditions to provide timely advice on necessary interventions.
Promotion of Agricultural Efficiency: CACP aims to promote efficiency in agricultural production by providing price incentives to farmers for adopting modern and efficient farming practices.
Ensuring Food Security: CACP plays a role in ensuring food security by recommending prices that encourage the production of essential food crops.
Research and Analysis: The commission conducts research and analysis on various aspects of agricultural economics to support its recommendations and policies.
Interaction with Stakeholders: CACP interacts with various stakeholders, including farmers, policymakers, and agricultural experts, to gather inputs and perspectives for its recommendations.
Advisory Role: CACP serves as an advisory body to the government, providing expert opinions and guidance on matters related to agricultural pricing and policies.
Report Submission: The commission submits periodic reports to the government, detailing its findings, recommendations, and analyses of the agricultural sector.
As of now, CACP recommends MSPs of 23 commodities, including cereals, pulses, oilseeds, and commercial crops. The CACP is responsible for studying the cost of cultivation of principal crops in India generating cost of cultivation and production estimates and providing them to the CACP to arrive at the recommendations of the Minimum Support Prices (MSP).
The overarching goal of CACP is to ensure that agricultural producers receive fair and remunerative prices for their produce, fostering agricultural growth and contributing to the welfare of farmers.
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