date:Aug 25, 2012
its recommendations on price policy, CACP considers a number of important factors which include, interalia, cost of production, changes in input prices, trends in market prices, demand and supply situation, effect on general price level, effect on cost of living etc.
The MSP is in the nature of a minimum guaranteed price for the farmers offered by the government for their produce in case the market prices fall below that level. If the market offers higher price than MSP, the farmers are free to