Which of the following organisations approves the Fair and Remunerative (F.R.P.) of the sugar cane?
- AOption (a)
Cabinet Committee on Economic Affairs
- BOption (b)
Commission for Agricultural Costs and Prices
- COption (c)
Directorate of Marketing and Inspection, Ministry of Agriculture
- DOption (d)
Agricultural Produce Market Committee
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Correct answer
Cabinet Committee on Economic Affairs
Why this answer is correct
The correct answer is the Cabinet Committee on Economic Affairs.
Key Points
- Cabinet Committee on Economic Affairs (CCEA) announces Minimum Support Price.
- MSP is announced on the basis of recommendations given by the Commission on Agricultural Costs and Price (CACP).
- In formulating the recommendations for MSP, CACP considers a number of things like the cost of production, input-output price parity, demand, and supply, etc.
- MSP is a kind of insurance that the government provides to farmers in case of a bumper production of a crop and a fall in prices.
- The government is bound to buy the crop at MSP from farmers if the price of the crop falls critically due to excessive supply.
- Pricing for sugarcane is governed under Sugarcane (control) order, 1997, and Fair and Remunerative Price (FRP) is provided for it.
- Currently, MSP is provided for 14 Kharif crops, 6 Rabi crops, and 2 other commercial crops while FRP is provided for Sugarcane.
- Therefore, in total 23 commodities are covered under MSP.
Important Points
- The government announces, Minimum Support Prices (MSP) for agricultural commodities each year in both the Crop seasons after taking into account the recommendations of the Commission for Agricultural Costs and Prices (CACP).
- CACP recommends MSP for twenty-two (22) crops and Fair & Remunerative Price (FRP) for sugarcane.
- Apart from Sugarcane for which FRP is declared by the Department of Food &Public Distribution, twenty-two crops covered under MSP are Paddy, Jowar, Bajra, Maize, Ragi, Arhar, Moong, Urad, Groundnut-in-shell, Soyabean, Sunflower, Sesamum, Nigerseed, Cotton, Wheat, Barley, Gram, Masur (lentil), Rapeseed/Mustardseed, Safflower, Jute and Copra.