Which of the following factors are considered by the 'Commission for Agricultural Costs and Prices (CACP) while determining Fair and Remunerative Price (FRP) for sugarcane? I. Availability of sugar to consumers at a fair price. II. Price at which sugar produced from sugarcane is sold by sugar producers. III. Recovery of sugar from sugarcane. IV. Return to the growers from alternative crops and the general trend of prices of agricultural commodities Correct Answer I, II, III and IV The correct answer is I, II, III, and IV. ​Key Points, SUGARCANE PRICING POLICY With the amendment of the Sugarcane (Control) Order, 1966 on 22.10.2009, the concept of Statutory Minimum Price (SMP) of sugarcane was replaced with the ‘Fair and Remunerative Price (FRP)’ of sugarcane for 2009-10 and subsequent sugar seasons. The cane price announced by the Central Government is decided on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP) in consultation with the State Governments and after taking feedback from associations of the sugar industry. The amended provisions of the Sugarcane (Control) Order, 1966 provides for fixation of FRP of sugarcane having regard to the following factors:- Cost of production of sugarcane Return to the growers from alternative crops and the general trend of prices of agricultural commodities Availability of sugar to consumers at a fair price; d) price at which sugar produced from sugarcane is sold by sugar producers Recovery of sugar from sugarcane The realization made from the sale of by-products viz. molasses, bagasse, and press mud or their imputed value. Reasonable margins for the growers of sugarcane on account of risk and profits. Under the FRP system, the farmers are not required to wait till the end of the season or for any announcement of the profits by sugar mills or the Government. The new system also assures margins on account of profit and risk to farmers, irrespective of the fact whether sugar mills generate profit or not, and is not dependent on the performance of any individual sugar mill. Additional Information Commission for Agricultural Costs and Prices is a decentralized agency of the Government of India. It was established in 1965 as the Agricultural Prices Commission and was given its present name in 1985. It is a statutory body attached to the Ministry of Agriculture & Farmers Welfare, Government of India. Formed: 1 January 1965 Objectives: Essential agricultural commodities at reasonable prices Headquarters: New Delhi First executive: Prof M L Dantwala