Agriculture Costs and nces CACP submits Commission for Agriculture Cost and and Price...........

Indian Economic System(PCS) Agriculture

Agriculture Costs

and nces . CACP) submits

Commission for Agriculture Cost and and Prices (CACP) submit its recommendations for for MSPs of agricultural commodities in form of price Policy Reports.

Consider the following statements :

1. CACP is a statutory body formed under Agriculture Price Commission Act, 1962.

2. Currently MSP is devoid of any legal backing except for Sugarcane to some extent.

3. Before submitting Price Policy Report for any crop, CACP also analyses demand and supply and the implications of MSP on consumers of that product along with the costs of production.

Which among the following statements is/are incorrect ?

This questions was previously asked in

PCS Previous year General Studies paper 2020

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Only 1

Only 1 and 3

Only 1, 2 and 3

None of the above

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Explanation:

- Statement 1: CACP is not a statutory body and there is no "Agriculture Price Commission Act, 1962". It was created in 1965 by an executive order of the government, not by an act of Parliament. Therefore, this statement is incorrect.

- Statement 2: MSP for crops generally does not have legal backing, except for sugarcane, due to the Sugarcane (Control) Order, 1966. So, this statement is correct.

- Statement 3: CACP does consider various factors, including demand and supply, the implications of MSP on consumers, and production costs before final recommendations. Hence, this statement is correct.

- Answer Options:

- Option 1 claims only Statement 1 is incorrect, which is true.

- Option 2 and 3 claim more statements are incorrect, which is not true.

- Option 4 claims none are incorrect, which is false.

Correct Answer: Option 1, Only 1