UPSC Prelims 2010 Q147: Indian Economy – Agriculture & Rural Development
Consider the following statements :
1. The Union Government fixes the Statutory Minimum Price of sugarcane for each sugar season.
2. Sugar and sugarcane are essential commodities under the Essential Commodities Act.
Which of the statements given above is/are correct ?
- (a) 1 only
- (b) 2 only
- (c) Both 1 and 2
- (d) Neither 1 nor 2
Answer: (c) Both 1 and 2
Explanation
Checking two claims about sugarcane pricing and regulation
Sugarcane and sugar are subject to specific government price-setting and essential-commodity regulations.
| Statement | Verdict | Reason |
|---|---|---|
| 1. Union Government fixes the Statutory Minimum Price of sugarcane each season | Correct | The Union Government did fix the Statutory Minimum Price (SMP) of sugarcane for each sugar season (later evolved into the Fair and Remunerative Price, FRP) |
| 2. Sugar and sugarcane are essential commodities under the ECA | Correct | Both sugar and sugarcane are indeed classified as essential commodities under the Essential Commodities Act |
Sugarcane pricing and regulation:
| Point | Detail |
|---|---|
| Price-setting | Union Government fixes the minimum price each season |
| Essential Commodities Act | Covers both sugar and sugarcane |
Answer: (c) Both 1 and 2.
Why each option is right or wrong
- (a) Incorrect. Statement 2 (essential commodity status) is also correct, so '1 only' is incomplete.
- (b) Incorrect. Statement 1 (Union fixing the SMP) is also correct, so '2 only' is incomplete.
- (c) CORRECT. Both the Union's SMP-fixing role and the essential-commodity classification of sugar and sugarcane are accurate.
- (d) Incorrect. Since both statements are accurate, 'neither' is wrong.
Key point
The Union Government fixes the Statutory Minimum Price of sugarcane each sugar season, AND both sugar and sugarcane are classified as essential commodities under the Essential Commodities Act — both statements are accurate.
Remember
Union Government fixes sugarcane's Statutory Minimum Price each season; sugar and sugarcane are both Essential Commodities Act items.
Common mistakes
- Assuming sugarcane pricing is a State-only matter, missing the Union Government's SMP-fixing role.
- Not knowing both sugar and sugarcane (not just one) fall under the Essential Commodities Act.
- Confusing the Statutory Minimum Price with unrelated market-price mechanisms.
Exam tip
Sugarcane: Union fixes the minimum price each season; both sugar and sugarcane are Essential Commodities Act items.
Sources
- Essential Commodities Act, 1955
- Sugarcane (Control) Order, 1966