Which of the following makes recommendation regarding fixing of minimum support price for various crops?

Question

Question

This question was previously asked in

UPPSC Civil Services (Prelims) Exam GS Official Paper-I (Held On: 10 May, 2015)

Answer 1

The correct answer is Commission for Agriculture Costs and Prices.

The minimum support price(MSP) is the minimum price set for agricultural products by the government of India.
It is the price that has to be paid on the purchase of agricultural produce directly from the farmers.

Key Points

The aim of this is to safeguard the farmer so that the farmer gets a minimum profit for the harvest in case the open market has less price as compared to the cost incurred.
Prices for 23 commodities are set by the Indian government twice a year.
They have been fixed based on the recommendations of the Commission for Agriculture Costs and Prices (CACP) since 2009.
CACP provides data to the government based on demand, supply, market price, international market prices, agricultural wage rate, price fluctuations, and cost of production.
The list of 23 commodities includes cereals, pulses, oilseeds, and commercial crops like sugarcane, cotton, and raw jute.

Additional Information

Indian Council of Agricultural Research is an organization established in 1929 which is responsible for coordinating education and research in the field of agriculture in India.
- It works under the Ministry of Agriculture with the Union Minister of agriculture as its chairperson.
- It is the largest network of education and research institutes in the world.
National bank for Agriculture and Rural Development (NABARD) is a regulatory organization for licensing and regulation of regional rural banks and cooperative banks in India.
- It was established in 1982 with its headquarters in Mumbai.
- It works under the Ministry of Finance, Government of India.
Indian Agricultural Research Institute was established in 1905 in Pusa, Bihar.
- After a major earthquake in Pusa, it got relocated to Delhi in 1936.
- It is financed and works under the Indian Council of Agricultural Research.
- This is the institute behind the research which led to the green revolution in India in 1970.