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UPSC Prelims 2015 · Agriculture · Farm Money
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
Show the answer and explanation
Answer: (a) Cabinet Committee on Economic Affairs
The CCEA, chaired by the Prime Minister, approves the FRP.
The idea
FRP is the minimum price sugar mills must pay farmers, fixed under the Sugarcane (Control) Order, 1966. Some States add a higher State Advised Price (SAP).
CACP recommends → Centre consults States → CCEA approves → mills must pay at least FRP
Why the others are wrong
(b) The CACP only RECOMMENDS the FRP — it doesn’t approve it.
(c) This directorate deals with grading and marketing (Agmark), not pricing.
(d) APMCs run mandis; they don’t set national prices.
The trap
The CACP is the name everyone knows for crop prices, so (b) tempts. Recommending ≠ approving.
🔒 FRP (sugarcane) and MSP: CACP recommends → CCEA approves. States may add an SAP.