Correct Option
The Fair and Remunerative Price (FRP) of sugarcane is the minimum price that sugar mills are legally obligated to pay to sugarcane farmers. While the Commission for Agricultural Costs and Prices (CACP) provides the recommendation for the FRP, its final approval is granted by the Cabinet Committee on Economic Affairs (CCEA). The CCEA considers the CACP's recommendations alongside broader economic, social, and policy considerations before making a decision.
Incorrect Options
Option (2): The Commission for Agricultural Costs and Prices (CACP) is an advisory body that recommends the Minimum Support Prices (MSPs) for various crops, including sugarcane's FRP. However, it does not possess the authority to approve these prices; its role is limited to formulation and recommendation.
Option (3): The Directorate of Marketing and Inspection, under the Ministry of Agriculture, is primarily responsible for the implementation of agricultural marketing policies, quality control, and grading standards. It is not involved in the approval process for commodity prices like the FRP.
Option (4): Agricultural Produce Market Committees (APMCs) are state-level bodies established under state APMC Acts to regulate agricultural markets. Their functions include providing market infrastructure and facilitating trade within designated market areas, but they do not determine or approve national-level commodity prices such as the FRP.