The Government has constituted a Committee under the Chairmanship of Director, National Centre for Agricultural Economics & Policy Research in the month of April, 2013, to examine the methodological issues in fixing Minimum Support Prices. The terms of reference of the Committee are given as under:-
ïƒ˜ To examine the existing mandate of the Commission for Agricultural Costs and Prices and suggest whether by way of a measure of response to the rapidly changing external environment arising in the wake of liberalization, privatization and globalization there is need to reposition the Commission in terms of its mandate and remit.
ïƒ˜ To examine the existing cost concepts for the purpose of fixing minimum support prices and suggest various factors including cost of transportation, marketing, processing, storage etc. to determine MSP. Besides, the Committee may also analyse the appropriateness of existing methods followed in imputing the value (i) family labour; (ii) rental value of land; (iii) interest on capital; (iv) depreciation on fixed items such as tractors, bullocks etc. and recommend measures for improvement so as to make them more realistic.
ïƒ˜ To examine the existing structure of tariff, taxes, credit, market etc. and to suggest various measures to make it most competitive and remunerative to the farmers in the wake of trade liberalization and globalization and also to encourage diversified agricultural growth.
ïƒ˜ To examine any other related and relevant matters that are important for improving the system.