Commission for Agricultural Costs and Prices is the acronym for CACP. This decentralized agency was founded in 1965. CACP is an expert body that helps Minimum Support Prices in various factors. However, the previous name of this expert body was Agricultural Prices Commission. Later, the name was changed to Commission for Agricultural Costs and Prices in 1985.

This advisory body is attached to the Ministry of Agriculture & Farmers Welfare, the Government of India. The key purpose of founding CACP is to motivate farmers and cultivators to adopt the latest technology. So, they can increase their productivity.

If you want to know more about CACP, we can help you here. Here, we will bring you some important information about this advisory body including roles, responsibilities, and composition. Let’s find out. 


The first thing you have to know about the Commission for Agricultural Costs and Prices is the composition. This expert body has five main members:

  • A Chairman
  • Member Secretary
  • One Official Member
  • Two Non-official members

In simple words, the government selects three official members. And the non-official members are the representatives of the farming community. On the other hand, these two members can have an active association with the community.

Roles and Responsibilities

Now, you know about the composition of CACP. Well, the roles and responsibilities are also essential. You see, CACP plays a key role when it comes to market inefficiencies. Well, there are various responsibilities of this advisory body. In the following, we are sharing the roles and responsibilities of CACP:

  • One of the top responsibilities of this expert body is maintaining the price environment. It’s very important when it comes to maintaining production and productivity. It can help a lot to prevent volatile agriculture.
  • CACP is good for helping farmers. They ensure that the farmers and cultivators are getting a fair price for crops, even if the market situation is unstable. On the other hand, this commission’s other mission is to keep farmers away from the cycle of debts.
  • As we noted above, the Commission for Agricultural Costs and Prices’ biggest role is giving recommendations to Minimum Support Price. It’s currently advising 23 commodities that include five pulses, seven grains, and seven oilseeds.
  • Another important role of the CACP is providing Price Policy Reports to the government every year. This report has five categories such as Kharif crops, Ravi crops, raw jute, sugarcane, and Copra.
  • While making the report, the CACP takes a look at the entire economic structure. So, it can have an effect on the entire economic structure and the report.
  • Another important role of this commission is the surprise visit. Yes, the Commission for Agricultural Costs and Prices makes surprise visits to make the on-the-spot assessments.

MSP stands for the Minimum Support Price that was established in 1966-67 during the Green Revolution. The main goal was to save farmers from depleting profits. The Commission for Agricultural Costs and Prices now helps MSP in a variety of cases.


Finally, you know the key details of the Commission for Agricultural Costs and Prices. We have shared the roles, responsibilities, and composition of the CACP. We hope it can be beneficial for you. If you want to know more information regarding CACP or MSP, make sure you are doing your research. You can also visit their official websites.


Q: Why is MSP important?

The key goal to create MSP was to save farmers the right to make the right prices of crops. So, it can balance the situation during the market price fluctuations.

Q: Who is the head of the Commission for Agricultural Costs and Prices?

The current head of the Commission for Agricultural Costs and Prices is Prof Vijay Paul Sharma.

Q: Which commission is expected to determine and announce administered prices for agricultural goods?

Agricultural Prices Commission is known as the Commission for Agricultural Costs and Prices. This commission has five members.