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Which of the following factors are considered by the 'Commission for Agricultural Costs and Prices (CACP) while determining Fair and Remunerative Price (FRP) for sugarcane? I. Availability of sugar to consumers at a fair price. II. Price at which sugar produced from sugarcane is sold by sugar producers. III. Recovery of sugar from sugarcane. IV. Return to the growers from alternative crops and the general trend of prices of agricultural commodities

Which of the following factors are considered by the 'Commission for Agricultural Costs and Prices (CACP) while determining Fair and Remunerative Price (FRP) for sugarcane? I. Availability of sugar to consumers at a fair price. II. Price at which sugar produced from sugarcane is sold by sugar producers. III. Recovery of sugar from sugarcane. IV. Return to the growers from alternative crops and the general trend of prices of agricultural commodities Correct Answer I, II, III and IV

The correct answer is I, II, III, and IV.

​Key Points,

  • SUGARCANE PRICING POLICY
  • With the amendment of the Sugarcane (Control) Order, 1966 on 22.10.2009, the concept of Statutory Minimum Price (SMP) of sugarcane was replaced with the ‘Fair and Remunerative Price (FRP)’ of sugarcane for 2009-10 and subsequent sugar seasons.
  • The cane price announced by the Central Government is decided on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP) in consultation with the State Governments and after taking feedback from associations of the sugar industry.
  • The amended provisions of the Sugarcane (Control) Order, 1966 provides for fixation of FRP of sugarcane having regard to the following factors:- 
    • Cost of production of sugarcane
    • Return to the growers from alternative crops and the general trend of prices of agricultural commodities
    • Availability of sugar to consumers at a fair price; d) price at which sugar produced from sugarcane is sold by sugar producers
    • Recovery of sugar from sugarcane
    • The realization made from the sale of by-products viz. molasses, bagasse, and press mud or their imputed value.
    • Reasonable margins for the growers of sugarcane on account of risk and profits.
  • Under the FRP system, the farmers are not required to wait till the end of the season or for any announcement of the profits by sugar mills or the Government.
  • The new system also assures margins on account of profit and risk to farmers, irrespective of the fact whether sugar mills generate profit or not, and is not dependent on the performance of any individual sugar mill.

Additional Information

  • Commission for Agricultural Costs and Prices is a decentralized agency of the Government of India.
    • It was established in 1965 as the Agricultural Prices Commission and was given its present name in 1985.
    • It is a statutory body attached to the Ministry of Agriculture & Farmers Welfare, Government of India.
    • Formed: 1 January 1965
    • Objectives: Essential agricultural commodities at reasonable prices
    • Headquarters: New Delhi
    • First executive: Prof M L Dantwala

Related Questions

Commission for Agriculture Costs and Prices (CACP) submits its recommendation for MSPs of agricultural commodities in form of Price Policy Reports. Consider the following statements: 1. CACP is a statutory body formed under Agriculture Price Commission Act, 1962. 2. Currently MSP is devoid of any legal backing except for Sugarcane to some extent. 3. Before submitting a Price Policy Report for any crop, CACP also analyses demand and supply and the implications of MSP on consumers of that product along with the costs of production. Which among the following statements is/are incorrect?
Which of the following factors are considered by Commission for ‘Agricultural Costs and Prices’ (CACP) while determining MSP for crops? I. Price trend in the domestic and international markets. II. Inter-crop price parity. III. Terms of trade between agricultural and non-agricultural sectors. IV. Cost of production.
With regard to the Commission for agricultural costs and Prices (CACP) which of the given statements is FALSE? 1. CACP was established with a view to evolve a balanced and integrated structure and is mandated to advice on the price policy (MSP) of 23 crops 2. CACP submits its recommendation in the form of price policy reports every year
A statement is given below in the question followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the following suggested courses of actions logically follow(s) for pursuing. Statement: Hindustan Unilever and Nestlé plan to selectively increase prices of their products to take into account higher crude oil and petrol costs, the rupee’s depreciation against the dollar and more expensive commodities such as wheat. If crude remains where it is and if the rupee has depreciated, of course, there are headwinds as far as costs are concerned. I. Nestlé India’s logistics providers are looking to renegotiate rates after record-high petrol and diesel prices. Nestlé declined to comment on when and by how much prices would increase.  II. Nestlé commented that HUL had dropped prices in November after the Goods & Services Tax was introduced last year and an increase in prices now would likely not hurt consumers.  III. Petrol prices have crossed Rs 90 a litre in Mumbai on increasing global prices of crude oil, of which India is a net importer, further impacted by the falling rupee. Crude derivatives, which are key inputs for FMCG companies, and petroleum derivatives used in packaging material including bottles and tubes, have also become more expensive.
Commission for ‘Agricultural Costs and Prices’ (CACP) submits its recommendations on MSP in the form of Price Policy Reports every year, separately for five groups of commodities. Which of the following is not one of those group of commodities?
Consider the following statements with reference to the Minimum Support Prices. 1. The MSP of six Rabi crops including Wheat, Chana, Masoor, Mustard and Safflower has been hiked in the range of 50 to 300 rupees. 2. The MSP is fixed on the recommendations of the Commission for Agricultural Costs and Prices (CACP). Which of the following statements given above is/are correct?
For which of the following crops ‘Fair and Remunerative Price (FRP)’ is announced by Cabinet Committee on Economic Affairs?
Essential Commodities Act (ECA), 1955 was in news recently. Which of the following statement(s) is/are incorrect about ECA?
1. ECA was enacted to ensure the easy availability of essential commodities to consumers.
2. Government intervention through ECA can increase price volatility of essential Commodities
3. ECA incentivises storag e infrastructure development
Select the correct answer:
The Centre hiked the Fair and Remunerative Price to sugarcane growers to how many rupees per quintal for 2021-22 marketing year?
Consider the following statements to the explain why Uttar Pradesh is called the 'Sugar-bowl of India'.
1. U.P has the highest production of sugarcane.
2. U.P. has the sugarcane engineering education institutes.
3. U.P. has the largest number of sugar mills.
4. U.P. has the highest number of sugarcane growers.
Which of the above explanations are correct?