Consider the following statements: 1. The Government of India provi

Consider the following statements:

  • 1. The Government of India provides Minimum Support Price (MSP) for some crops.
  • 2. The MSP is declared by the Commission for Agricultural Costs and Prices (CACP).
  • 3. The MSP is fixed by the Government of India on the basis of the recommendations of the CACP.

Which of the statements given above are correct?

1 and 2 only
1 and 3 only
2 and 3 only
1, 2 and 3
This question was previously asked in
UPSC CAPF – 2010
Statements 1 and 3 are correct, while statement 2 is incorrect.
– Statement 1: The Government of India provides Minimum Support Price (MSP) for a number of crops (currently 22 mandated crops and Sugarcane’s Fair and Remunerative Price). This statement is correct.
– Statement 2: The Commission for Agricultural Costs and Prices (CACP) recommends the MSP. The MSP is *declared* or *announced* by the Government of India. This statement is incorrect.
– Statement 3: The MSP is fixed by the Government of India on the basis of the recommendations made by the CACP. The CACP submits its reports and recommendations to the government, and the final decision on MSP levels is taken by the Cabinet Committee on Economic Affairs (CCEA). This statement is correct.
The CACP is an attached office of the Ministry of Agriculture & Farmers Welfare. It provides recommendations on MSPs based on various factors like cost of production, demand-supply situation, market price trends, inter-crop price parity, etc.