UPSC Prelims 2015 Q13: Indian Economy – Agriculture & Rural Development
The Fair and Remunerative Price (FRP) of sugarcane is approved by the
- (a) Cabinet Committee on Economic Affairs
- (b) Commission for Agricultural Costs and Prices
- (c) Directorate of Marketing and Inspection, Ministry of Agriculture
- (d) Agricultural Produce Market Committee
Answer: (a) Cabinet Committee on Economic Affairs
Explanation
Fair and Remunerative Price (FRP) of sugarcane
The FRP is the minimum price that sugar mills must pay cane farmers.
| Step | Body |
|---|---|
| Recommends | Commission for Agricultural Costs and Prices (CACP) |
| Approves | Cabinet Committee on Economic Affairs (CCEA) |
| Legal basis | Sugarcane (Control) Order, 1966, amended in 2009 |
Related prices:
| Price | Fixed by |
|---|---|
| FRP | Central Government; replaced the Statutory Minimum Price in 2009 |
| State Advised Price | Some States, usually higher than the FRP |
| Minimum Support Price | For other crops; also approved by the CCEA |
The options checked: the CACP only recommends; the Directorate of Marketing and Inspection and the Agricultural Produce Market Committee have no role in fixing it.
Answer: (a) Cabinet Committee on Economic Affairs.
Why each option is right or wrong
- (a) CORRECT. The FRP of sugarcane is approved by the Cabinet Committee on Economic Affairs.
- (b) Incorrect. The Commission for Agricultural Costs and Prices only recommends it.
- (c) Incorrect. The Directorate of Marketing and Inspection handles grading (AGMARK).
- (d) Incorrect. The Agricultural Produce Market Committee runs mandis, not cane pricing.
Key point
FRP of sugarcane: recommended by CACP, approved by the Cabinet Committee on Economic Affairs, under the Sugarcane (Control) Order, 1966.
Remember
FRP: CACP recommends, CCEA approves.
Common mistakes
- Choosing the CACP, which recommends but does not approve.
- Confusing the FRP with the State Advised Price.
- Thinking sugarcane has an ordinary Minimum Support Price; it has the FRP.
Exam tip
CACP recommends; CCEA approves. This holds for both MSP and FRP.
Sources
- Department of Food and Public Distribution — Sugarcane (Control) Order, 1966
- Commission for Agricultural Costs and Prices — Price Policy for Sugarcane