Consider the following statements:

1. The Union Government fixes the Statutory Minimum Price (SMP) 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?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Explanation

Statement 1 is correct

• The Union Government (Central Government) has the authority to fix the minimum price of sugarcane for each sugar season.
• This is done based on the recommendations of the Commission for Agricultural Costs and Prices (CACP) and is officially approved by the Cabinet Committee on Economic Affairs (CCEA)

Statement 2 is correct

• Both sugar and sugarcane are notified under the Essential Commodities Act, 1955.

Answer: (c) Both 1 and 2