Q. The Fair and Remunerative Price (FRP) of sugarcane is approved by the (UPSC Prelims 2015)
Answer:
Cabinet Committee on Economic Affairs
Notes: The correct answer is
[A] Cabinet Committee on Economic Affairs (CCEA). Sugarcane pricing in India follows a specific statutory mechanism governed by the
Sugarcane (Control) Order, 1966.
- Approval Authority (Option A – Correct): The Cabinet Committee on Economic Affairs, chaired by the Prime Minister of India, is the final authority that approves the Fair and Remunerative Price (FRP).
- Recommendation Body (Option B – Incorrect): The Commission for Agricultural Costs and Prices (CACP) is an advisory body that recommends the FRP after considering the cost of production, return to growers, and the price of sugar. While its input is foundational, it does not "approve" the price.
- FRP vs. MSP: Unlike other crops (like wheat or paddy) for which the Government announces a Minimum Support Price (MSP), sugarcane has an FRP. This is the minimum price that sugar mills are legally bound to pay to farmers for the cane purchased.
- State Advised Price (SAP): Some state governments (like Uttar Pradesh and Punjab) announce their own price, known as the SAP, which is generally higher than the FRP announced by the Central Government.
Factors considered for FRP:- Cost of production of sugarcane.
- Return to the growers from alternative crops and the general trend of prices of agricultural commodities.
- Availability of sugar to consumers at a fair price.
- Price at which sugar produced from sugarcane is sold by sugar producers.
- Recovery of sugar from sugarcane.