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Q13 (IAS/2015) Economy › Agriculture & Rural Economy › Agricultural price policy Official Key

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

Result
Your answer:  ·  Correct: A
Explanation

The FRP is approved by the Cabinet Committee on Economic Affairs (CCEA) on the basis of the cost of production recommended by the Commission for Agricultural Cost and Prices (CACP).[1] This is an important distinction to understand: while FRP is determined by the central government on the basis of recommendations of the Commission for Agricultural Costs and Prices (CACP)[2], the final approval authority rests with the CCEA.

MSP is the price paid by government to farmers for procurement, whereas FRP is the price fixed by government but is paid by mill owners. FRP is fixed by government only for sugarcane.[3] The CACP plays a crucial advisory role by recommending the price based on cost of production and other factors, but it is the Cabinet Committee on Economic Affairs that has the authority to approve and finalize the FRP that sugar mills must pay to farmers.

Sources
  1. [3] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > MINIMUM SUPPORT PRICE > p. 328
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Q. The Fair and Remunerative Price (FRP) of sugarcane is approved by the [A] Cabinet Committee on Economic Affairs [B] Commission for Agri…
At a glance
Origin: Books + Current Affairs Fairness: Low / Borderline fairness Books / CA: 2.5/10 · 7.5/10

This is a classic 'Authority vs. Advisory' trap. The question tests if you can distinguish between the technocratic body that calculates/recommends (CACP) and the political executive body that formally approves (CCEA). It is a fair, standard question found in every serious economy resource.

How this question is built

This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.

Statement 1
Does the Cabinet Committee on Economic Affairs approve the Fair and Remunerative Price (FRP) of sugarcane in India?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.18 Previous Years Questions > p. 328
Presence: 5/5
“• 1. The Fair and Remunerative Price (RFP) of sugarcane is approved by the [2015] • (a) Cabinet Committee on Economic Affairs• (b) Commission for Agricultural Costs and Prices• (c) Directorate of Marketing and Inspection, Ministry of Agriculture• (d) Agricultural Produce Marketing Committee”
Why this source?
  • Snippet explicitly names the Cabinet Committee on Economic Affairs (CCEA) as the approving authority for the Fair and Remunerative Price (FRP) of sugarcane in a previous‑years question item.
  • Direct statement linking FRP approval to CCEA provides the most explicit support among the snippets.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.3 Minimum Support Price (MSP) > p. 306
Presence: 4/5
“For sugarcane, Ministry of Consumer Affairs, Food and Public Distribution recommend Fair and Remunerative Price (FRP), while some States announces their own State Advised Price (SAP). SAP/FRP is the price at which mill owners are bound to purchase sugarcane from the farmers and it is done through 'Sugarcane Control Order 1966' under the Essential Commodities Act 1955. There are two separate things, one is declaration/announcing of MSP and the other is procurement of food grains at MSP by Govt. Agencies. The purpose of announcing MSP is not that Govt. is going to purchase all the crops under MSP, rather its purpose is that the farmers should get that minimum price.”
Why this source?
  • States that the Ministry of Consumer Affairs, Food and Public Distribution recommends the FRP for sugarcane, identifying the recommendation stage of the process.
  • Shows FRP is an announced price (binding on mill owners), implying a formal central approval step follows recommendation.
Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > MINIMUM SUPPORT PRICE > p. 328
Presence: 3/5
“It is the price at which government purchases crops from the farmers. If there is a bumper harvest, then the fall in the price cannot go below the MSP. It acts as a guarantee price to protect farmers from distress sale. MSP was first announced for wheat in 1966-67. Like MSP, there is another concept called Fair and Remunerative Price (FRP). MSP is the price paid by government to farmers for procurement, whereas FRP is the price fixed by government but is paid by mill owners. FRP is fixed by government only for sugarcane. It is because owing to its weight-losing properties, sugarcane must reach mills within a stipulated time.”
Why this source?
  • Clarifies that FRP is fixed by the government (and specifically applies only to sugarcane), indicating central government involvement in FRP fixation.
  • Supports the premise that a central authority (such as CCEA) is the plausible approving body for FRP.
Statement 2
Does the Commission for Agricultural Costs and Prices approve the Fair and Remunerative Price (FRP) of sugarcane in India?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"The FRP is approved by the Cabinet Committee on Economic Affairs (CCEA) ... on the basis of the cost of production recommended by the Commission for Agricultural Cost and Prices (CACP)."
Why this source?
  • Explicitly states which body approves the FRP and the role of CACP in the process.
  • Shows that CACP provides recommendations but approval is by the Cabinet Committee on Economic Affairs (CCEA), not CACP.
Web source
Presence: 4/5
"FRP is determined by the central government on the basis of recommendations of the Commission for Agricultural Costs and Prices (CACP"
Why this source?
  • States FRP is determined on the basis of recommendations of the Commission for Agricultural Costs and Prices (CACP).
  • Implies CACP recommends but does not itself approve the FRP.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.3 Minimum Support Price (MSP) > p. 306
Strength: 5/5
“For sugarcane, Ministry of Consumer Affairs, Food and Public Distribution recommend Fair and Remunerative Price (FRP), while some States announces their own State Advised Price (SAP). SAP/FRP is the price at which mill owners are bound to purchase sugarcane from the farmers and it is done through 'Sugarcane Control Order 1966' under the Essential Commodities Act 1955. There are two separate things, one is declaration/announcing of MSP and the other is procurement of food grains at MSP by Govt. Agencies. The purpose of announcing MSP is not that Govt. is going to purchase all the crops under MSP, rather its purpose is that the farmers should get that minimum price.”
Why relevant

States that for sugarcane the Ministry of Consumer Affairs, Food and Public Distribution recommends the Fair and Remunerative Price (FRP), distinguishing the recommending authority from CACP.

How to extend

A student could check jurisdiction/responsibility differences between ministries (Agriculture vs Consumer Affairs) to infer which body likely approves FRP.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > MINIMUM SUPPORT PRICE > p. 328
Strength: 4/5
“It is the price at which government purchases crops from the farmers. If there is a bumper harvest, then the fall in the price cannot go below the MSP. It acts as a guarantee price to protect farmers from distress sale. MSP was first announced for wheat in 1966-67. Like MSP, there is another concept called Fair and Remunerative Price (FRP). MSP is the price paid by government to farmers for procurement, whereas FRP is the price fixed by government but is paid by mill owners. FRP is fixed by government only for sugarcane. It is because owing to its weight-losing properties, sugarcane must reach mills within a stipulated time.”
Why relevant

Explains FRP is a government-fixed price paid by mill owners and that FRP is fixed by government only for sugarcane (distinct from MSP procurement by government).

How to extend

Use this distinction to focus inquiry on which government agency handles sugarcane-specific pricing versus general MSP mechanisms.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > Objectives of MSP include: > p. 329
Strength: 4/5
“• While recommending MSP, CACP considers determinants such as demand and supply, cost of production, price trends in market, inter-crop price parity, a minimum of 50 per cent margin over cost of production, etc. • Thus, MSP announced is 1. 5 times the cost of production of the crop. • At present, government announces MSP for 22 mandated crops and FRP for sugarcane. • In addition to it, MSP for Toria and De-Husked Coconut is fixed on the basis of MSPs of ö rapeseed/mustard and copra, respectively.”
Why relevant

Notes that government announces MSP for many crops and FRP specifically for sugarcane, and separately describes the CACP's role when recommending MSP.

How to extend

Since CACP is explicitly tied to MSP recommendations, a student could infer CACP's typical remit and question whether FRP (a separate instrument) falls under that remit.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.3 Minimum Support Price (MSP) > p. 305
Strength: 5/5
“Agriculture Crop Year: 1st July - 30th June Marketing Season of Kharif crops starts from 1st October Marketing Season of Rabi crops starts from 1st April Before the sowing, during each Rabi and Kharif crop season, Government of India, Ministry of Agriculture and Farmers' Welfare announces the Minimum Support Prices (MSP) for procurement based on the recommendation of the Commission for Agricultural Costs and Prices (CACP) under Ministry of Agriculture and Farmers' Welfare and upon approval of the Cabinet Committee on Economic Affairs (CCEA). MSP does not have any legal backing till now and farmers can't demand it as a legal right.”
Why relevant

States that MSPs are recommended by the Commission for Agricultural Costs and Prices (CACP) and approved by the Cabinet Committee on Economic Affairs (CCEA).

How to extend

A student can extend this pattern (CACP→CCEA for MSP) to test whether FRP follows the same approval chain or a different one (as hinted by other snippets).

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.18 Previous Years Questions > p. 328
Strength: 3/5
“• 1. The Fair and Remunerative Price (RFP) of sugarcane is approved by the [2015] • (a) Cabinet Committee on Economic Affairs• (b) Commission for Agricultural Costs and Prices• (c) Directorate of Marketing and Inspection, Ministry of Agriculture• (d) Agricultural Produce Marketing Committee”
Why relevant

Presents a multiple-choice question asking which body approves the FRP, listing CACP among possible options — indicating the question is nontrivial and debated in sources.

How to extend

Use this as an example that authoritative sources treat the approving authority for FRP as a distinct, examinable fact to verify (so one should not assume CACP without checking).

Statement 3
Does the Directorate of Marketing and Inspection (Ministry of Agriculture) approve the Fair and Remunerative Price (FRP) of sugarcane in India?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"THE Cabinet Committee on Economic Affairs (CCEA) on Friday approved the fair and remunerative price (FRP) of sugarcane — payable by sugar mills ..."
Why this source?
  • Explicitly states which body approves the FRP: the Cabinet Committee on Economic Affairs (CCEA) approved the FRP.
  • If CCEA approves FRP, this indicates approval is by central government bodies, not the Directorate of Marketing and Inspection (DMI).
Web source
Presence: 4/5
"FRP is determined by the central government on the basis of recommendations of the Commission for Agricultural Costs and"
Why this source?
  • Explains FRP determination: it is set by the central government based on CACP recommendations.
  • No mention of DMI as the approving authority, implying approval lies with central government/CACP process.
Web source
Presence: 4/5
"(dried coconut), cotton, jute and Fair and. Remunerative Price (FRP) of Sugarcane. While recommending MSPs/FRP, CACP is called upon to ensure ..."
Why this source?
  • Mentions the role of the Commission for Agricultural Costs and Prices (CACP) in recommending MSPs/FRP.
  • Supports that recommendation/approval is handled via CACP/central channels rather than DMI.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.3 Minimum Support Price (MSP) > p. 306
Strength: 5/5
“For sugarcane, Ministry of Consumer Affairs, Food and Public Distribution recommend Fair and Remunerative Price (FRP), while some States announces their own State Advised Price (SAP). SAP/FRP is the price at which mill owners are bound to purchase sugarcane from the farmers and it is done through 'Sugarcane Control Order 1966' under the Essential Commodities Act 1955. There are two separate things, one is declaration/announcing of MSP and the other is procurement of food grains at MSP by Govt. Agencies. The purpose of announcing MSP is not that Govt. is going to purchase all the crops under MSP, rather its purpose is that the farmers should get that minimum price.”
Why relevant

States that for sugarcane the Ministry of Consumer Affairs, Food & Public Distribution recommends the FRP and that States may announce SAP; it ties FRP to a specific ministry rather than DMI.

How to extend

A student could check which ministry typically recommends FRP (Consumer Affairs) and thus look for approval authority within that ministry or related committees, not DMI.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > MINIMUM SUPPORT PRICE > p. 328
Strength: 4/5
“It is the price at which government purchases crops from the farmers. If there is a bumper harvest, then the fall in the price cannot go below the MSP. It acts as a guarantee price to protect farmers from distress sale. MSP was first announced for wheat in 1966-67. Like MSP, there is another concept called Fair and Remunerative Price (FRP). MSP is the price paid by government to farmers for procurement, whereas FRP is the price fixed by government but is paid by mill owners. FRP is fixed by government only for sugarcane. It is because owing to its weight-losing properties, sugarcane must reach mills within a stipulated time.”
Why relevant

Explains the distinction: FRP is fixed by government only for sugarcane and is paid by mill owners (different from MSP procured by government).

How to extend

Use this rule to narrow which agencies handle price-fixing (those involved in price policy for commodities) rather than agencies handling standards/marketing like DMI.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.3 Minimum Support Price (MSP) > p. 305
Strength: 4/5
“Agriculture Crop Year: 1st July - 30th June Marketing Season of Kharif crops starts from 1st October Marketing Season of Rabi crops starts from 1st April Before the sowing, during each Rabi and Kharif crop season, Government of India, Ministry of Agriculture and Farmers' Welfare announces the Minimum Support Prices (MSP) for procurement based on the recommendation of the Commission for Agricultural Costs and Prices (CACP) under Ministry of Agriculture and Farmers' Welfare and upon approval of the Cabinet Committee on Economic Affairs (CCEA). MSP does not have any legal backing till now and farmers can't demand it as a legal right.”
Why relevant

Describes the MSP-setting process: CACP recommends MSP and CCEA approves it, illustrating that price-setting involves CACP/CCEA for MSP and a formal approval route.

How to extend

By analogy, a student can infer FRP likely follows a formal recommendation/approval route involving relevant price or cabinet bodies, so they can look for a similar chain for FRP rather than DMI.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > AGMARK > p. 326
Strength: 4/5
“It is a certification mark for agricultural products in India, assuring that they conform by a set of standards approved by the Directorate of Marketing and Inspection, an attached office of the Department of Agriculture, Cooperation and Farmers Welfare under the Ministry of Agriculture & Farmers Welfare. The AGMARK Head Office is at Faridabad (Haryana). It is legally enforced in India by the Agricultural Produce Act of 1937.”
Why relevant

Shows the Directorate of Marketing and Inspection (DMI) is an attached office concerned with standards (AGMARK) under the Ministry of Agriculture & Farmers Welfare, implying its primary role is quality/standards not price fixation.

How to extend

A student can contrast DMI’s standards/marketing role with price-setting responsibilities to judge whether DMI is the likely approver of FRP.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.18 Previous Years Questions > p. 328
Strength: 3/5
“• 1. The Fair and Remunerative Price (RFP) of sugarcane is approved by the [2015] • (a) Cabinet Committee on Economic Affairs• (b) Commission for Agricultural Costs and Prices• (c) Directorate of Marketing and Inspection, Ministry of Agriculture• (d) Agricultural Produce Marketing Committee”
Why relevant

Presents a multiple-choice question asking which body approves the FRP, listing CCEA, CACP, DMI, etc., indicating that authoritative bodies (e.g., CCEA/CACP) are considered relevant options and DMI is presented for comparison.

How to extend

Use the listed alternatives to focus further research on the more plausible approving authorities (CACP/CCEA) and deprioritise DMI unless supporting evidence appears.

Statement 4
Does the Agricultural Produce Market Committee approve the Fair and Remunerative Price (FRP) of sugarcane in India?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"THE Cabinet Committee on Economic Affairs (CCEA) on Friday approved the fair and remunerative price (FRP) of sugarcane — payable by sugar mills ..."
Why this source?
  • Shows that the FRP is approved at the central government level by the Cabinet Committee on Economic Affairs (CCEA), not by a local market committee.
  • Indicates central-government authority over FRP approval for sugarcane payable by mills.
Web source
Presence: 5/5
"FRP is determined by the central government on the basis of recommendations of the Commission for Agricultural Costs and"
Why this source?
  • States that FRP is determined by the central government based on recommendations of the Commission for Agricultural Costs and Prices (CACP).
  • Attributes FRP setting to central authorities and CACP consultation, not to Agricultural Produce Market Committees (APMCs).

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.3 Minimum Support Price (MSP) > p. 306
Strength: 5/5
“For sugarcane, Ministry of Consumer Affairs, Food and Public Distribution recommend Fair and Remunerative Price (FRP), while some States announces their own State Advised Price (SAP). SAP/FRP is the price at which mill owners are bound to purchase sugarcane from the farmers and it is done through 'Sugarcane Control Order 1966' under the Essential Commodities Act 1955. There are two separate things, one is declaration/announcing of MSP and the other is procurement of food grains at MSP by Govt. Agencies. The purpose of announcing MSP is not that Govt. is going to purchase all the crops under MSP, rather its purpose is that the farmers should get that minimum price.”
Why relevant

Explains who recommends FRP for sugarcane (Ministry of Consumer Affairs, Food & Public Distribution) and distinguishes FRP/SAP as the price at which mill owners must buy cane.

How to extend

A student could check institutional responsibility of that Ministry vs state APMCs (e.g., look up the Ministry's notifications) to see if APMC is the approving body.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > MINIMUM SUPPORT PRICE > p. 328
Strength: 5/5
“It is the price at which government purchases crops from the farmers. If there is a bumper harvest, then the fall in the price cannot go below the MSP. It acts as a guarantee price to protect farmers from distress sale. MSP was first announced for wheat in 1966-67. Like MSP, there is another concept called Fair and Remunerative Price (FRP). MSP is the price paid by government to farmers for procurement, whereas FRP is the price fixed by government but is paid by mill owners. FRP is fixed by government only for sugarcane. It is because owing to its weight-losing properties, sugarcane must reach mills within a stipulated time.”
Why relevant

States that FRP is fixed by the government (and paid by mill owners) and is distinct from MSP procurement by government.

How to extend

Use this rule to infer that approval likely rests with a central government authority rather than a market-regulating body like APMC, then verify which central body issues FRP orders.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > Objectives of MSP include: > p. 329
Strength: 4/5
“• While recommending MSP, CACP considers determinants such as demand and supply, cost of production, price trends in market, inter-crop price parity, a minimum of 50 per cent margin over cost of production, etc. • Thus, MSP announced is 1. 5 times the cost of production of the crop. • At present, government announces MSP for 22 mandated crops and FRP for sugarcane. • In addition to it, MSP for Toria and De-Husked Coconut is fixed on the basis of MSPs of ö rapeseed/mustard and copra, respectively.”
Why relevant

Notes explicitly that the government announces FRP for sugarcane (contrasting it with MSP for other crops).

How to extend

This suggests FRP follows a government-level procedure; a student can compare the statutory powers of APMCs (state-level market regulators) versus the central government to judge plausibility.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.3 Minimum Support Price (MSP) > p. 305
Strength: 4/5
“Agriculture Crop Year: 1st July - 30th June Marketing Season of Kharif crops starts from 1st October Marketing Season of Rabi crops starts from 1st April Before the sowing, during each Rabi and Kharif crop season, Government of India, Ministry of Agriculture and Farmers' Welfare announces the Minimum Support Prices (MSP) for procurement based on the recommendation of the Commission for Agricultural Costs and Prices (CACP) under Ministry of Agriculture and Farmers' Welfare and upon approval of the Cabinet Committee on Economic Affairs (CCEA). MSP does not have any legal backing till now and farmers can't demand it as a legal right.”
Why relevant

Describes the MSP approval process (CACP recommends, CCEA approves) for crops—illustrates that price-setting can be a central recommendation/approval process rather than market-committee action.

How to extend

By analogy, a student can ask whether FRP follows a similar central recommendation/approval route (and then check which commission/ministry handles FRP), reducing likelihood that APMC approves FRP.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.9.1 Agriculture Produce and Marketing Committee (APMC) Acts > p. 313
Strength: 4/5
“Agricultural Markets in most parts of the country are established and regulated under the State APMC Acts. The whole geographical area in a State is divided into various market areas/ mandis wherein each market is managed by a Market Committee constituted by the State Government. Once a particular area is declared a market area and falls under the jurisdiction of a Market Committee, no person or agency is allowed freely to carry on wholesale marketing activities outside the market. The Act states that the first sale of agricultural commodities produced in the region such as cereals, pulses, edible oilseed, fruits and vegetables and even chicken, goat, sheep, sugar, fish etc. can be conducted only under the aegis of the APMC through the commission agents licensed by the APMCs setup under the Act.”
Why relevant

Defines APMCs as state market regulators that manage mandis and first-sale marketing activities (including sugar) rather than central price fixation.

How to extend

A student can combine this with the above that government announces FRP to infer APMC's role is market regulation, not national price approval—then verify legal mandates of APMC acts versus FRP notifications.

Pattern takeaway: UPSC consistently tests the 'Separation of Powers' within the Executive. Commissions (CACP, Finance Commission) usually 'recommend', while Cabinet Committees (CCEA, CCS) 'approve'. If a question asks for the 'Approving Authority' of a major economic policy, the answer is almost always the Cabinet Committee on Economic Affairs (CCEA).
How you should have studied
  1. [THE VERDICT]: Sitter. This is fundamental static Economy/Agriculture governance. Source: Vivek Singh (Ch 10) or Nitin Singhania (Ch 9).
  2. [THE CONCEPTUAL TRIGGER]: Agricultural Pricing Policy & Food Management (The distinction between MSP and FRP).
  3. [THE HORIZONTAL EXPANSION]: Memorize the Chain: 1) MSP: Recommended by CACP → Approved by CCEA. 2) FRP (Sugarcane): Recommended by CACP → Approved by CCEA. 3) Statutory Basis: FRP is legally binding (Essential Commodities Act/Sugarcane Control Order, 1966), whereas MSP is administrative/executive only. 4) SAP (State Advised Price): Announced by State Govts (usually higher than FRP).
  4. [THE STRATEGIC METACOGNITION]: Never just memorize 'MSP exists'. Always map the administrative workflow: Calculation (Technical) → Recommendation (Advisory Commission) → Approval (Political Cabinet). UPSC targets the specific node in this chain.
Concept hooks from this question
📌 Adjacent topic to master
S1
👉 FRP versus MSP (difference and applicability)
💡 The insight

References explain that FRP is distinct from MSP and is specifically used for sugarcane while MSP applies to other mandated crops.

High‑yield concept for UPSC: questions often test the difference between price mechanisms (MSP, FRP, SAP). Mastering this clarifies which crops are covered, who pays (government vs mill owners), and policy implications. Prepare by comparing definitions, legal/operational differences, and past examples.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.3 Minimum Support Price (MSP) > p. 306
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > MINIMUM SUPPORT PRICE > p. 328
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > Objectives of MSP include: > p. 329
🔗 Anchor: "Does the Cabinet Committee on Economic Affairs approve the Fair and Remunerative..."
📌 Adjacent topic to master
S1
👉 Recommendation-to-approval chain for agricultural prices
💡 The insight

Evidence shows ministries or statutory bodies recommend prices (Ministry/CACP) and higher executive bodies (CCEA) give approval for announced prices.

Important for governance and polity–economy questions: UPSC often asks which agencies recommend versus who approves policy actions. Knowing the chain (CACP/Ministry → CCEA) helps answer procedural and institutional questions; study official roles and past approvals.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.3 Minimum Support Price (MSP) > p. 305
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.3 Minimum Support Price (MSP) > p. 306
🔗 Anchor: "Does the Cabinet Committee on Economic Affairs approve the Fair and Remunerative..."
📌 Adjacent topic to master
S1
👉 Regulatory basis for sugarcane pricing (Sugarcane Control Order / Essential Commodities Act)
💡 The insight

References reference the Sugarcane Control Order under the Essential Commodities Act as the legal framework binding mill owners to FRP/SAP.

Useful for questions on legal/regulatory frameworks in agricultural policy: connects price fixation to statutory orders and central regulatory powers. UPSC aspirants should link statutes to market interventions and practice by mapping laws to commodities.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.3 Minimum Support Price (MSP) > p. 306
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 12: Supply Chain and Food Processing Industry > Introduction: > p. 367
🔗 Anchor: "Does the Cabinet Committee on Economic Affairs approve the Fair and Remunerative..."
📌 Adjacent topic to master
S2
👉 MSP versus FRP (who sets which price)
💡 The insight

References distinguish MSP (procurement price announced on CACP advice) from FRP (price specific to sugarcane paid by mills and recommended by a different ministry).

High-yield concept for UPSC: questions often ask which prices are fixed/recommended by which bodies and the legal/operational difference between MSP and FRP. Master by tabulating each price-type, who recommends/fixes it, who pays it (government vs private buyers), and linked schemes (procurement, PDS).

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.3 Minimum Support Price (MSP) > p. 306
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > MINIMUM SUPPORT PRICE > p. 328
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > Objectives of MSP include: > p. 329
🔗 Anchor: "Does the Commission for Agricultural Costs and Prices approve the Fair and Remun..."
📌 Adjacent topic to master
S2
👉 Role of CACP and CCEA in price fixation
💡 The insight

Evidence shows CACP recommends MSP and approval by CCEA is part of the MSP process; relevant to determining whether CACP handles FRP.

Frequently tested institutional role: UPSC asks about mandate and functions of policy bodies (CACP, CCEA). Aspirants should memorize CACP's remit (recommendation of MSP) and the approval route (CCEA), practice by mapping institutions to specific price mechanisms.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.3 Minimum Support Price (MSP) > p. 305
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > Objectives of MSP include: > p. 329
🔗 Anchor: "Does the Commission for Agricultural Costs and Prices approve the Fair and Remun..."
📌 Adjacent topic to master
S2
👉 Ministry of Consumer Affairs' role in sugarcane FRP
💡 The insight

One reference explicitly attributes recommendation of FRP for sugarcane to the Ministry of Consumer Affairs, Food & Public Distribution, distinguishing it from CACP's remit.

Useful for questions that probe which ministry/body recommends/fixes commodity-specific prices (e.g., sugarcane). Learn by noting ministry-level responsibilities for key crops and how state-advised prices (SAP) interact with central FRP.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.3 Minimum Support Price (MSP) > p. 306
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > Objectives of MSP include: > p. 329
🔗 Anchor: "Does the Commission for Agricultural Costs and Prices approve the Fair and Remun..."
📌 Adjacent topic to master
S3
👉 FRP versus MSP (who fixes/pays which price)
💡 The insight

References distinguish FRP (specific to sugarcane and paid by mill owners) from MSP (government procurement price), clarifying the different pricing instruments involved.

High-yield concept for UPSC: questions often ask differences between price-support mechanisms (MSP, FRP, SAP). Mastering this helps answer policy/administration and agricultural-economy questions; connect to procurement policy, market interventions and edible-commodities governance. Prepare by tabulating definitions, agencies involved, and who pays/receives each price.

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > MINIMUM SUPPORT PRICE > p. 328
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > Objectives of MSP include: > p. 329
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.3 Minimum Support Price (MSP) > p. 306
🔗 Anchor: "Does the Directorate of Marketing and Inspection (Ministry of Agriculture) appro..."
🌑 The Hidden Trap

The 'Ministry' Trap: While CACP recommends the price, Sugarcane falls under the administrative control of the Ministry of Consumer Affairs, Food & Public Distribution, NOT the Ministry of Agriculture (which handles MSP for other crops). This is why the 'Sugarcane Control Order' is crucial.

⚡ Elimination Cheat Code

Hierarchy Hack: Look at the verbs implied. 'Approve' implies final decision-making power and financial burden. A 'Commission' (Option B) is advisory. A 'Directorate' (Option C) is bureaucratic/implementing. A 'Committee' (Option D - APMC) is local. Only a 'Cabinet Committee' (Option A) has the political mandate to approve national prices.

🔗 Mains Connection

Mains GS-3 (Agriculture/Economy): Link FRP to 'Sugar Arrears'. Because FRP is high (political) and sugar prices are market-linked (low), mills fail to pay farmers. This necessitates the 'Ethanol Blending Programme' (EBP) to divert surplus cane and ensure liquidity for mills.

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SIMILAR QUESTIONS

IAS · 2018 · Q93 Relevance score: -2.46

Consider the following : 1. Areca nut 2. Barley 3. Coffee 4. Finger millet 5. Groundnut 6. Sesamum 7. Turmeric The Cabinet Committee on Economic Affairs has announced the Minimum Support Price for which of the above ?

IAS · 2010 · Q86 Relevance score: -2.60

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?

IAS · 2009 · Q141 Relevance score: -3.64

Consider the following statements : 1. The Commission for Agricultural Costs and Prices recommends the Minimum Support Prices for 32 crops. 2. The Union Ministry of Consumer Affairs, Food and Public Distribution has launched the National Food Security Mission. Which of the statements given above is/are correct ?

CDS-II · 2018 · Q71 Relevance score: -3.68

With regard to the cabinet decision in July 2018, the percentage increase in Minimum Support Price (MSP) is maximum in which one of the following crops?

CAPF · 2020 · Q62 Relevance score: -4.09

Fixation of price levels for wheat and rice by the Commission for Agriculture Costs and Prices (CACP) is an example of ?