Commission for Agricultural Costs and Prices (CACP)
The CACP is a statutory body set up in 1965 under the Ministry of Agriculture and Farmers' Welfare. It recommends minimum support prices (MSPs) for major agricultural commodities and the FRP for sugarcane, taking into account the cost of production, demand-supply balance, inter-crop price parity, terms of trade between agriculture and non-agriculture, and the likely impact of price recommendations on the general price level.
- CACP recommends FRP (for sugarcane) and MSP (for 23 other crops); final approval rests with CCEA
- The CACP's mandate covers kharif and rabi crops separately each year; sugarcane season is October-September
- The body does not implement prices — it only recommends; procurement and payment are the responsibility of mills (for sugarcane) and government agencies (for MSP crops)
- CACP considers A2+FL cost (actual paid-out cost plus imputed value of family labour) and C2 cost (A2+FL plus imputed rent and interest on owned capital) in its analysis
- Government policy is to set FRP/MSP at 1.5x A2+FL cost (Swaminathan Commission recommendation partially adopted for MSP in 2018)
● Tracked since February 25, 2026 · last seen June 15, 2026 · updates as the daily brief publishes
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