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UPSC Prelims 2015 Q13: Indian Economy – Agriculture & Rural Development

UPSC Prelims 2015, General Studies Paper I · Indian Economy

The Fair and Remunerative Price (FRP) of sugarcane is approved by the
  1. (a) Cabinet Committee on Economic Affairs
  2. (b) Commission for Agricultural Costs and Prices
  3. (c) Directorate of Marketing and Inspection, Ministry of Agriculture
  4. (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.

StepBody
RecommendsCommission for Agricultural Costs and Prices (CACP)
ApprovesCabinet Committee on Economic Affairs (CCEA)
Legal basisSugarcane (Control) Order, 1966, amended in 2009

Related prices:

PriceFixed by
FRPCentral Government; replaced the Statutory Minimum Price in 2009
State Advised PriceSome States, usually higher than the FRP
Minimum Support PriceFor 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

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

Exam tip

CACP recommends; CCEA approves. This holds for both MSP and FRP.

Sources

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