| Which of the following prices is/are fixed by the central government? |
| 1. Maximum Retail Price (MRP) |
| 2. Minimum Support Price (MSP) |
| 3. Fair and Remunerative Price (FRP) |
| Select the correct answer using the codes given below. |
A) 1 and 2 only
B) 1 and 3 only
C) 2 only
D) 2 and 3 only
Correct Answer: D
Solution :
[d] MSP is fixed by the central government on the recommendations of the Commission on Agricultural Cost and Prices (CAPC). FRP is for sugar, which is fixed by the central government. Its normally higher than MSP, but serves the same purpose of providing a guarantee to sugarcane farmers that their produce will be bought at a given price. FRP is the existing arrangement for the price to be paid to sugarcane farmers by the Sugar Mills and is announced each year by the Centre, under the Sugarcane Control Order and on the advice of Commission for Agricultural Costs and Prices (CACP), as the minimum price of sugarcane. However, many states in north India also announce a State Advised Price (SAP) under state legislation. Generally, the SAP is substantially higher than the FRP, and therefore wherever SAP is declared, it is the ruling price. Mill owners are obligated to pay SAP to farmers. MRP is fixed by manufacturers. However, government can play a regulatory and advisory role in fixing of MRP.
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