UPSC Prelims 2015 · Question 13 of 98

UPSC Prelims 2015 question on Fair Remunerative Price Sugarcane

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

  1. Cabinet Committee on Economic Affairs
  2. Commission for Agricultural Costs and Prices
  3. Directorate of Marketing and Inspection, Ministry of Agriculture
  4. Agricultural Produce Market Committee
Show answer

Answer: A. Cabinet Committee on Economic Affairs

Verdict

The answer is the Cabinet Committee on Economic Affairs. The CCEA approves the Fair and Remunerative Price of sugarcane.

Analysis

The Commission for Agricultural Costs and Prices recommends the FRP after examining cost of production, demand and supply, and inter crop price parity, and the Cabinet Committee on Economic Affairs then takes the decision to approve it. The distinction between recommending and approving is the whole question. The Directorate of Marketing and Inspection deals with grading and standardisation of agricultural produce. The Agricultural Produce Market Committee operates the regulated mandi at the local level and has no role in fixing a national statutory price.

Source

The Hindu Businessline report on the cane fair price revision.

How to crack it

Split every price fixing question into who recommends and who approves, because UPSC builds its distractor from the other half of that pair. CACP recommends and the CCEA approves, for the minimum support price as well as the FRP. The same recommend against approve structure appears across policy, so ask it as a reflex: which body advises, which body decides, and which body implements.

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