UPSC Prelims 1995 · General Studies
Question 16: Economy and Social Development
Which of the following are the objectives of the Commission for Agricultural Costs and Prices (CACP)? I. To stabilise agricultural prices. II. To ensure meaningful real income levels to the farmers. III. To protect the interest of the consumers by providing essential agricultural commodities at reasonable rates through public distribution system. IV. To ensure maximum price for the farmer. Select the correct answer from the codes given below:
AnswerThe answer is (a).
The Commission for Agricultural Costs and Prices recommends minimum support prices and procurement prices. Its aims are to stabilise agricultural prices, to ensure meaningful real income for farmers, and to protect consumers by keeping essential commodities available at reasonable rates through the public distribution system. It does not aim at the maximum price for the farmer, since that would work against consumers. Remember: it balances farmers' income against consumers' prices.
- I. Stabilising agricultural prices is a stated objective.
- II. Meaningful real income for farmers is a stated objective.
- III. Protecting consumers through reasonable prices in the public distribution system is a stated objective.
- IV. The aim is a remunerative price balanced with consumer interest, not the maximum price.
Why each option is right or wrong
- (a) Right: I, II and III.
- (b) Includes the 'maximum price' aim, which is not an objective.
- (c) Includes IV and drops II, the real-income objective for farmers.
- (d) Drops I, price stabilisation, and includes IV.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 1995, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.