Which of the following are the objectives the Commission for Agricultural Costs and Prices CAC...........

Economic Affairs Food Management

Which of the following are the objectives the Commission for Agricultural Costs and Prices (CACP)?

1. To stabilize agricultural prices

2. To ensure meaningful real income levels to the farmers

3. To protect the interest of the consumers by providing essential agricultural commodities at reasonable rates through public distribution system

4. To ensure maximum price for the farmers

Select your answer from the codes given below:

1, 2 and 3 only

1, 2 and 4 only

1, 3 and 4 only

2, 3 and 4 only

Only statements 1,2&3 are correct.

The Commission for Agricultural Costs and Prices (CACP) was initially known as the Agricultural Prices Commission. It was renamed the Commission for Agricultural Costs and Prices in 1985.
It is a statutory panel under the Ministry of Agriculture & Farmers’ Welfare, Government of India.
The CACP is an expert body that recommends the MSPs of the notified Kharif and Rabi crops to the Cabinet Committee on Economic Affairs (CCEA).
The objective of the Commission: The Commission was established to recommend Minimum Support Prices (MSPs), to motivate cultivators and farmers to adopt the latest technology in order to optimize the use of resources and increase productivity.
However, its suggestions are not binding on the Government.
The CACP plays a key role in handling market inefficiencies.
It provides an assurance of a remunerative and stable price environment. This is important for enhancing agricultural production and productivity since the marketplace for agricultural produce tends to be inherently volatile.
It helps the farmers obtain a fair price for their crops, even if the market situation is unstable, thereby preventing the farmers from falling into the vicious cycle of debt.