Question 21 from UPSC CSE 2015 - Economy

Question

The Fair and Remunerative Price (FRP) of sugarcane is approved by the

IASCODEX · Accepted Answer

Correct Option: A. Cabinet Committee on Economic Affairs

Strategy: Focus on decision-making authority, not just advisory or recommending bodies. The CACP only recommends, but final approval—especially for price-fixation measures like the FRP—is given by the high-level Cabinet Committee on Economic Affairs. The other options either play subordinate roles or operate at local levels.

Key Info: **The Fair and Remunerative Price (FRP)**
The FRP is the minimum price set by the Government of India that sugar mills must pay to sugarcane growers. This system was established under the Sugarcane (Control) Order, 1966, and its mandatory payment is enforced by the Essential Commodities Act, 1955.

**Roles of Key Bodies**
- **Commission for Agricultural Costs and Prices (CACP):** An advisory body that annually recommends the FRP based on factors like production cost, demand-supply, and sugar prices.
- **Cabinet Committee on Economic Affairs (CCEA):** A high-level committee headed by the Prime Minister that holds the final approval authority for the FRP. It evaluates recommendations and inter-ministerial inputs before announcing the price.
- **Directorate of Marketing and Inspection:** Works in the area of agricultural marketing but does not set prices.
- **Agricultural Produce Market Committee (APMC):** A state-level statutory board that regulates market trade but does not determine national-level price policies for sugarcane.

In summary, while the CACP provides important recommendations, only the CCEA has the executive authority to approve and declare the FRP.

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Option B: Commission for Agricultural Costs and Prices

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Option C: Directorate of Marketing and Inspection, Ministry of Agriculture

IASCODEX · Answer

Option D: Agricultural Produce Market Committee