Consider the following statements:1. The Union Government fixes the Statutory Minimum Price of sugarcane for each sugar season.2. Sugar and sugarcane are essential commodities under the Essential Commodities Act.Which of the statements given above is/are correct ?
✓ Correct answer: c) Both 1 and 2
ExplanationStatement 1 is correct : The Sugarcane price in India is determined by statutory provisions of the Sugarcane (Con- tro) Order, 1966 issued under the Essential Commodities Act (ECA), 1955. Until 2009, the Union Government fixed the Statu- tory Minimum Price (SMP) for sugarcane under the Sugarcane (Control) Order, 1966. However, from the 2009-10 sugar season onwards, the SMP was replaced by the Fair and Remunerative Price (FRP), which continues to be fixed by the Union Govern- ment based on recommendations of the Commission for Agricul- tural Costs and Prices (CACP).FRP is the minimum price that is determined by the government of India on the recommendation of CACP.Statement 2 is correct : Both sugar and sugarcane are classified as essential commodities under the Essential Commodities Act, 1955, which allows the government to regulate their pro- duction, supply, and distribution to ensure availability and con- trol prices.In addition to the Fair and Remunerative Price (FRP) set by the central government for sugarcane, some Indian states also announce their own State Advised Price (S
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