Explanation:

The Commission on Agricultural Prices (CACP) makes use of both micro-level data and aggregates at the level of district, state and the country. The information/data used by the Commission, inter-alia include the following Cost of cultivation per hectare and structure of costs in various regions of the country and changes there in; Cost of production per quintal in various regions of the country and changes therein; Prices of various inputs and changes therein; Market prices of products and changes therein; Prices of commodities sold by the farmers and of those purchased by them and changes therein; Supply related information - area, yield and production, imports, exports and domestic availability and stocks with the Government/public agencies or industry; Demand related information - total and per capita consumption, trends and capacity of the processing industry;

Also, the following is taken into account:

Prices in the international market and changes therein, demand and supply situation in the world market; Prices of the derivatives of the farm products such as sugar, jaggery, jute goods, edible/non- edible oils and cotton yarn and changes therein; Cost of processing of agricultural products and changes therein; Cost of marketing - storage, transportation, processing, marketing services, taxes/fees and margins retained by market functionaries; and Macro-economic variables such as general level of prices, consumer price indices and those reflecting monetary and fiscal factors.