What was the main purpose of establishing the Agricultural Prices Commission in 1965?

Key Points

• Option 1 is correct because the main purpose of establishing the Agricultural Prices Commission in 1965 was to determine the prices for various farm products purchased by the government.
• The Agricultural Prices Commission was set up to ensure that farmers received fair prices for their produce, promoting agricultural growth and stability.
• This initiative was crucial for maintaining a stable agricultural economy and ensuring food security in the country.

Additional Information

• The Agricultural Prices Commission was later renamed as the Commission for Agricultural Costs and Prices (CACP).
• The CACP advises the government on the pricing policy of major agricultural commodities to incentivize farmers and ensure profitability.
• The commission's recommendations are considered while setting the Minimum Support Prices (MSP) for various crops.
• The establishment of the commission was a step towards institutionalizing the policy framework for agricultural pricing in India.