CACP
Institutional Role in Agricultural Pricing
The Commission for Agricultural Costs and Prices (CACP) is the apex advisory body on agricultural pricing policy in India. Initially set up as the Agricultural Prices Commission in 1965, it was renamed in 1985 to emphasize its dual focus on both costs and prices. It functions under the Ministry of Agriculture and Farmers' Welfare.
- CACP is an advisory body — not a statutory regulatory body with autonomous powers; its recommendations are not binding
- Composition: Chairman (often an economist), Member Secretary, and two members (one each from agriculture and economics backgrounds)
- The 23 crops for which MSP is recommended include all kharif and rabi crops announced seasonally
- CACP recommendations factor in: cost of production (A2, A2+FL, C2 variants), demand-supply balance, domestic and international prices, and price stability objectives
- The "C2" cost (which includes imputed rent and interest on owned land/capital) is higher than A2+FL; farmer organizations have demanded MSP at 1.5 times C2, not A2+FL
● Tracked since February 24, 2026 · last seen May 13, 2026 · updates as the daily brief publishes
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