Consider the following statements about Commission for Agricultural Costs & Prices (CACP):

  1. Prime Minister is the chairman of the commission
  2. The commission announces MSP for various crops at the beginning of each sowing season

  Which of the above statements is/are correct?

Answer: [D] Neither 1 nor 2

First statement is incorrect because the chairman is appointed by the Ministry of Agriculture. Commission for Agricultural Costs & Prices (CACP) came into existence since 1985. Currently, the Commission comprises a Chairman, Member Secretary, one Member (Official) and two Members (Non-Official). The non-official members are representatives of the farming community and usually have an active association with the farming community. Second statement is incorrect because the Cabinet Committee of Economic Affairs announces MSP for various crops at the beginning of each sowing season based on the recommendations of the Commission for Agricultural Costs and Prices (CACP). 

This question is a part of GKToday's Integrated IAS General Studies Module