Correct Option
Statement 1 is correct. The Union Government announces the Fair and Remunerative Price (FRP) for sugarcane for each sugar season. This mechanism, which replaced the earlier Statutory Minimum Price (SMP), is implemented under the Sugarcane (Control) Order, 1966. The FRP is determined based on recommendations of the Commission for Agricultural Costs and Prices (CACP) and approved by the Cabinet Committee on Economic Affairs (CCEA), ensuring a fair price to sugarcane growers.
Statement 2 is correct. Both sugar and sugarcane are classified as essential commodities under the Essential Commodities Act, 1955. This legal framework enables the government to intervene and regulate their production, supply, distribution, and trade to ensure availability to consumers at reasonable prices, especially during periods of scarcity or price volatility.
Incorrect Options
Options (a), (b), and (d) are incorrect because both Statement 1 and Statement 2 are factually accurate. The Union Government is responsible for fixing the FRP of sugarcane, and both sugar and sugarcane are indeed designated as essential commodities under the relevant Act.