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
Statement 1 is correct: The Sugarcane price in India is determined by statutory provisions of the Sugarcane (Con-tro) Order, 1966 issued under the Essential Commodities Act (ECA), 1955. Until 2009, the Union Government fixed the Statutory Minimum Price (SMP) for sugarcane under the Sugarcane (Control) Order, 1966. However, from the 2009-10 sugar season onwards, the SMP was replaced by the Fair and Remunerative Price (FRP), which continues to be fixed by the Union Government based on recommendations of the Commission for Agricultural Costs and Prices (CACP). FRP is the minimum price that is determined by the government of India on the recommendation of CACP.
Statement 2 is correct: Both sugar and sugarcane are classified as essential commodities under the Essential Commodities Act, 1955, which allows the government to regulate their production, supply, and distribution to ensure availability and control prices.
In addition to the Fair and Remunerative Price (FRP) set by the central government for sugarcane, some Indian states also announce their own State Advised Price (SAP) for sugarcane. While FRP is the minimum price that sugar mills must pay for sugarcane, SAP is a higher price that some states offer to sugarcane farmers in their jurisdiction.