With reference to Fair and remunerative price (FRP), consider the following statements:
1. The Fair and remunerative price (FRP) of sugarcane is approved by the Commission for Agricultural Cost and Prices (CACP).
2. It denotes the maximum price obligated to be paid by sugar mills to farmers for their sugarcane produce.
3. State Agreed Price (SAP) cannot be higher than the FRP determined by the Centre.

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3
(d) None

Question

With reference to Fair and remunerative price (FRP), consider the following statements:
1. The Fair and remunerative price (FRP) of sugarcane is approved by the Commission for Agricultural Cost and Prices (CACP).
2. It denotes the maximum price obligated to be paid by sugar mills to farmers for their sugarcane produce.
3. State Agreed Price (SAP) cannot be higher than the FRP determined by the Centre.

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3
(d) None

ONLiNE UPSC · Accepted Answer

Statement 1 is not correct: The proposal for determination of 'Fair and Remunerative Price' (FRP) of sugarcane payable by sugar mills for a sugar season is approved by the Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister. The FRP is based on the Rangarajan Committee report on reorganizing the sugarcane industry.

Statement 2 is not correct: It denotes the minimum price and not the maximum price obligated to be paid by sugar mills to farmers for their sugarcane produce.

Statement 3 is not correct: State Agreed Price (SAP) States have the authority to determine their SAP, which is typically higher than the FRP.

Agricultural Economics

Fair and Remunerative Price (FRP)

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M Question 1	⏱ 0
With reference to Fair and remunerative price (FRP), consider the following statements: 1. The Fair and remunerative price (FRP) of sugarcane is approved by the Commission for Agricultural Cost and Prices (CACP). 2. It denotes the maximum price obligated to be paid by sugar mills to farmers for their sugarcane produce. 3. State Agreed Price (SAP) cannot be higher than the FRP determined by the Centre. Which of the statements given above is/are correct? (a) 1 and 2 only (b) 2 only (c) 1 and 3 (d) None

Agricultural Economics

Fair and Remunerative Price (FRP)

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