UPSC Prelims 2015 GS Paper I · Q13 of 100 Economy medium

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

  1. (a) Cabinet Committee on Economic Affairs ✓ UPSC's answer
  2. (b) Commission for Agricultural Costs and Prices
  3. (c) Directorate of Marketing and Inspection, Ministry of Agriculture
  4. (d) Agricultural Produce Market Committee

Why the answer is (a)

• The Fair and Remunerative Price of sugarcane, the minimum mills must pay growers under the Sugarcane (Control) Order, 1966, is recommended by the CACP and approved by the Cabinet Committee on Economic Affairs — option (a).

• CACP (b) only recommends; the Directorate of Marketing (c) handles grading (AGMARK); APMCs (d) run mandis.

• States may fix a higher State Advised Price.

• Hence option (a).

Why the other options are wrong

(b) Commission for Agricultural Costs and Prices
CACP recommends FRP but does not approve it.
(c) Directorate of Marketing and Inspection, Ministry of Agriculture
The Directorate of Marketing handles grading, not prices.
(d) Agricultural Produce Market Committee
APMCs do not set FRP.

Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2015, held on 23 August 2015. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.

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