The correct answer is Option 1: I, II, and III.

The Commission for Agricultural Costs and Prices (CACP) is a statutory body in India that plays a crucial role in agricultural pricing and policy formulation. Let`s examine each objective mentioned in the options:

I. To stabilize agricultural prices:

One of the primary objectives of the CACP is to ensure price stability in the agricultural sector. It aims to prevent extreme price fluctuations, which can be detrimental to both farmers and consumers. By analyzing various factors such as production costs, market conditions, and demand-supply dynamics, the CACP recommends Minimum Support Prices (MSPs) for major agricultural commodities. These MSPs act as a floor price and provide stability to farmers` incomes.

II. To ensure meaningful real income levels to the farmers:

Another important objective of the CACP is to safeguard the economic interests of farmers by ensuring they receive reasonable and remunerative prices for their produce. The CACP takes into account the cost of cultivation, including factors such as labor, fertilizers, seeds, machinery, and irrigation, while determining the MSPs. By setting MSPs at a level that provides an adequate return on farmers` investment and labor, the CACP strives to improve their income levels and make farming financially viable.

III. To protect the interests of consumers by providing essential agricultural commodities at reasonable rates through the public distribution system:

The CACP also aims to protect the interests of consumers by ensuring the availability of essential agricultural commodities at reasonable rates. It recognizes the importance of food security and recommends MSPs that balance the interests of farmers and consumers. By providing a predictable pricing framework, the CACP contributes to stable food supplies and affordable prices, especially through government schemes like the Public Distribution System (PDS).

IV. To ensure the maximum price for the farmer:

Option 2 includes this objective, but it is not accurate. The CACP`s primary focus is on ensuring stability, meaningful income, and reasonable prices for farmers and consumers. While the CACP strives to provide fair and remunerative prices to farmers, it does not aim to ensure the maximum price for them. Instead, it takes a balanced approach that considers the interests of farmers and consumers, aiming for sustainable agricultural development.

To summarize, the correct answer is Option 1: I, II, and III. The CACP`s objectives include stabilizing agricultural prices, ensuring meaningful income levels for farmers, and protecting the interests of consumers by providing essential agricultural commodities at reasonable rates through the public distribution system.