Commission For Agriculture Costs And Prices (CACP) – All About CACP

Introduction :

# Commission For Agriculture Costs And Prices works under the ministry of Agriculture and Farmers Welfare.

# It came into existence in 1965 as Agriculture Price Commission.In 1985  the organisation is renamed as Commission For Agriculture Costs and prices.

Function : 

# The organisation is mandated to recommend Minimum Support Price (MSP) to incentivize the cultivators to use modern technology and raise productivity and overall grain production in line with the emerging demand patterns in the country.

# CACP submits its recommendation to government in the form of price policy every year.

# It will recommend MSP separately for five group of commodities such as 

1.Kharif Crops

2.Rabi Crops


4.Raw Jute 


# Before submitting policy reports to government ,CACP forwards all its reports to state governments,ministries and also CACP   arrange separate meetings with farmers,FCI,NAFED etc .Based on all these inputs,CACP will put forward the MSP price policy .After deciding MSP ,again CACP will circulates the report to state governments and concerned ministries for their comments.

# Once Final price policy is decided,it submits its report to government and Cabinet Committe on Economic Affairs will take the final decision on MSP.

CACP recommends MSP of 23 commodities which comprise of 

1.Cereals ( Paddy.Wheat, Maize,Sorghum,Pearl Millet,Barley and Ragi)——>7 Cereals

2.Pulses ( Gram,Tur,Moong,Urad,Lentil)——-> 5 Pulses

3.Oilseeds (Groundnut,Rapeseed-Mustard,Soyabean,Seasmum,Sunflower,Safflower,NigerSeed)—>7 Oilseeds

4.Commercial Crops (Copra,Sugarcane,Cotton,Raw Jute )——>4 Commercial Crops

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