Previous Year Question
Who approves the Fair and Remunerative Price (FRP) of sugarcane?
Correct Answer: A
Detailed Solution
The Fair and Remunerative Price (FRP) of sugarcane is
approved by the Cabinet Committee on Economic Affairs (CCEA). Official releases of the Government of India clearly state that the CCEA approves the FRP of sugarcane for the respective sugar season.
It is important to distinguish the roles of CACP and CCEA. The Commission for Agricultural Costs and Prices (CACP) recommends the FRP, after consultations involving State Governments and other stakeholders, while the final approval is given by the Government through the CCEA.
FRP is the price applicable to the purchase of sugarcane from farmers by sugar mills and is fixed before the commencement of the sugar season.