Question map
Consider the following statements: 1. The Union Government fixes the Statutory Minimum Price of sugarcane for each sugar season 2. Sugar and sugarcane are essential commodities under the Essential Commodities Act Which of the statements given above is/are correct?
Explanation
The correct answer is Option 3 (Both 1 and 2).
Statement 1 is correct: The Union Government fixes the price of sugarcane for each sugar season. While the nomenclature was changed from Statutory Minimum Price (SMP) to Fair and Remunerative Price (FRP) in 2009 via an amendment to the Sugarcane (Control) Order, 1966, the fundamental power to fix a statutory price remains with the Central Government (based on CACP recommendations). In the context of competitive exams, SMP and FRP are often treated as the statutory pricing mechanism controlled by the Union.
Statement 2 is correct: Under the Essential Commodities Act, 1955, the government regulates the production, supply, and distribution of certain commodities to ensure availability at fair prices. Both sugar and sugarcane are explicitly listed as essential commodities in the Schedule of this Act.
Since both statements accurately reflect the regulatory framework and legal status of sugar/sugarcane in India, Option 3 is the right choice.