03 February, 2020
4 Min Read
Syllabus subtopic: Issues related to Direct and Indirect Farm Subsidies and Minimum Support Prices
Prelims and Mains focus: about the open-ended procurement policy and the need to review it; about CACP and its mandate
News: As the debate surrounding the review of open-ended procurement policy has started gaining momentum, following a recommendation by the Commission for Agricultural Costs and Price (CACP) to the Centre government, several farmers and farmers’ bodies in Punjab and Haryana have hinted that any move to stop or limit it would be opposed and resisted.
According to CACP, the policy of open-ended procurement has led to mounting food stocks and adversely affected crop diversification. Consequently, it asked for a review of the open-ended policy.
What is the open-ended procurement policy?
About Commission for Agricultural Costs and Price (CACP)
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.
How is MSP decided by the government?
Source: The Hindu
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