Statutory Minimum Price for sugarcane — UPSC Prelims PYQ 2010
Consider the following statements:
- The Union Government fixes the Statutory Minimum Price (SMP) of sugarcane for each sugar season.
- Sugar and sugarcane are essential commodities under the Essential Commodities Act.
Which of the statements given above is/are correct?
- 1 only
- 2 only
- Both 1 and 2
- 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
