UPSC Prelims Practice Questions — Cabinet approves Fair and Remunerative Price of Rs.365/qtl for Sugarcane Farmers for season 2026-27

Q1. For how many commodities, in total, does the Commission for Agricultural Costs and Prices (CACP) currently recommend Minimum Support Prices to the Government of India?

  • A. 22
  • B. 23
  • C. 25
  • D. 27

Q2. With reference to the Fair and Remunerative Price (FRP) of sugarcane vis-à-vis its predecessor and the Minimum Support Price (MSP) regime, consider the following statements: 1. The FRP replaced the earlier Statutory Minimum Price (SMP) for sugarcane with effect from the sugar season 2009-10. 2. Unlike the Minimum Support Price (MSP) announced for most crops, the FRP for sugarcane has a statutory basis and sugar mills are legally bound to pay it. 3. The FRP for sugarcane is recommended by the NITI Aayog and approved by the Cabinet Committee on Economic Affairs (CCEA). Which of the statements given above is/are correct?

  1. The FRP replaced the earlier Statutory Minimum Price (SMP) for sugarcane with effect from the sugar season 2009-10.
  2. Unlike the Minimum Support Price (MSP) announced for most crops, the FRP for sugarcane has a statutory basis and sugar mills are legally bound to pay it.
  3. The FRP for sugarcane is recommended by the NITI Aayog and approved by the Cabinet Committee on Economic Affairs (CCEA).
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q3. With reference to the Fair and Remunerative Price (FRP) of sugarcane approved by the Cabinet Committee on Economic Affairs for Sugar Season 2026-27, consider the following statements: Which of the statements given above is/are NOT correct?

  1. The FRP has been fixed at Rs. 365 per quintal linked to a basic recovery rate of 10.25%.
  2. A premium of Rs. 3.56 per quintal is payable for every 0.1% increase in recovery above the benchmark rate.
  3. In the case of sugar mills with recovery below 9.5%, farmers will receive Rs. 338.3 per quintal without any further deduction.
  4. The cost of production (A2+FL) of sugarcane considered for fixing the FRP for Sugar Season 2026-27 is Rs. 200 per quintal.
  • A. 1 only
  • B. 2 and 3 only
  • C. 4 only
  • D. 1 and 4 only

Q4. With reference to the Fair and Remunerative Price (FRP) of sugarcane for Sugar Season 2026-27 vis-à-vis Sugar Season 2025-26, consider the following statements: Which of the statements given above is/are correct?

  1. The FRP for Sugar Season 2026-27 (Rs. 365/qtl) is higher than the FRP for Sugar Season 2025-26 by Rs. 10/qtl.
  2. The basic recovery rate benchmark has been revised upward from 10.25% in Sugar Season 2025-26 to 10.5% in Sugar Season 2026-27.
  3. The FRP approved for Sugar Season 2026-27 is approximately 2.81% higher than the FRP of the preceding sugar season.
  • A. 1 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q5. With reference to the pricing regime for sugarcane in India, which one of the following is the authority that finally approves the Fair and Remunerative Price (FRP) payable by sugar mills to sugarcane farmers?

  • A. Commission for Agricultural Costs and Prices
  • B. Cabinet Committee on Economic Affairs
  • C. Department of Food and Public Distribution
  • D. NITI Aayog Governing Council

Q6. For how many mandated agricultural crops does the Commission for Agricultural Costs and Prices (CACP) recommend the Minimum Support Price (MSP) to the Government of India?

  • A. 14
  • B. 20
  • C. 22
  • D. 25

Q7. With reference to the evolution from Statutory Minimum Price (SMP) to Fair and Remunerative Price (FRP) for sugarcane in India, consider the following statements: 1. The FRP regime came into effect from the sugar season 2009-10 through an amendment to the Sugarcane (Control) Order, 1966. 2. The Rangarajan Committee on regulation of the sugar sector recommended a revenue-sharing ratio of 70:30 between sugarcane farmers and sugar mills. 3. The Sugarcane (Control) Order, 1966 was issued under the Essential Commodities Act, 1955. 4. The Rangarajan Committee recommended that the State Advised Price (SAP) be made statutorily binding on all sugarcane-producing States. Which of the statements given above are correctly identified?

  1. The FRP regime came into effect from the sugar season 2009-10 through an amendment to the Sugarcane (Control) Order, 1966.
  2. The Rangarajan Committee on regulation of the sugar sector recommended a revenue-sharing ratio of 70:30 between sugarcane farmers and sugar mills.
  3. The Sugarcane (Control) Order, 1966 was issued under the Essential Commodities Act, 1955.
  4. The Rangarajan Committee recommended that the State Advised Price (SAP) be made statutorily binding on all sugarcane-producing States.
  • A. 1 and 2 only
  • B. 3 and 4 only
  • C. 1, 2 and 3 only
  • D. 1, 2, 3 and 4

Q8. With reference to the replacement of Statutory Minimum Price (SMP) by Fair and Remunerative Price (FRP) for sugarcane, consider the following statements: 1. The FRP regime came into effect from the sugar season 2009-10. 2. The Commission for Agricultural Costs and Prices (CACP) recommends the FRP to the Cabinet Committee on Economic Affairs (CCEA). 3. The Rangarajan Committee on regulation of the sugar sector submitted its report in the year 2012. 4. The Rangarajan Committee recommended that sugarcane farmers be paid solely on the basis of the A2+FL cost of production, without any revenue-sharing linkage to sugar and by-product realisations. Which of the statements given above is NOT correct?

  1. The FRP regime came into effect from the sugar season 2009-10.
  2. The Commission for Agricultural Costs and Prices (CACP) recommends the FRP to the Cabinet Committee on Economic Affairs (CCEA).
  3. The Rangarajan Committee on regulation of the sugar sector submitted its report in the year 2012.
  4. The Rangarajan Committee recommended that sugarcane farmers be paid solely on the basis of the A2+FL cost of production, without any revenue-sharing linkage to sugar and by-product realisations.
  • A. 1 only
  • B. 2 and 3 only
  • C. 3 only
  • D. 4 only

Q9. The Commission for Agricultural Costs and Prices (CACP), which recommends the Fair and Remunerative Price for sugarcane and the Minimum Support Prices for mandated crops, functions as an attached office of which one of the following?

  • A. NITI Aayog, Government of India
  • B. Department of Agriculture and Farmers Welfare, Ministry of Agriculture and Farmers Welfare
  • C. Department of Food and Public Distribution, Ministry of Consumer Affairs, Food and Public Distribution
  • D. Department of Agricultural Research and Education (DARE), Ministry of Agriculture and Farmers Welfare

Q10. With reference to the crops for which the Commission for Agricultural Costs and Prices (CACP) recommends a statutory or support price (MSP/FRP) to the Government of India, consider the following crops: 1. Sugarcane 2. Tea 3. Copra 4. Tobacco Which of the above is/are correctly identified?

  1. Sugarcane
  2. Tea
  3. Copra
  4. Tobacco
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 1, 3 and 4 only
  • D. 1, 2 and 3 only

Q11. Which one of the following statements best describes India's position in the global sugar economy as per the latest official data?

  • A. World's largest producer and consumer of sugar, and second-largest exporter of sugar
  • B. World's second-largest producer of sugar, largest consumer, and largest exporter
  • C. World's largest producer of sugar, second-largest consumer, and largest exporter
  • D. World's second-largest producer and consumer of sugar, and second-largest exporter

Q12. Which one of the following is the leading sugarcane-producing State in the tropical sugarcane belt of India?

  • A. Uttar Pradesh
  • B. Maharashtra
  • C. Karnataka
  • D. Tamil Nadu

Q13. The target of achieving 20% blending of ethanol in petrol by Ethanol Supply Year 2025-26 in India was advanced from the earlier deadline of 2030 under which one of the following policy documents?

  • A. National Policy on Biofuels, 2018 (as amended in 2022)
  • B. National Policy on Biofuels, 2009
  • C. Ethanol Blended Petrol Programme Notification, 2003
  • D. National Bio-Energy Mission, 2018

Q14. With reference to the Ethanol Blended Petrol (EBP) Programme in India, consider the following feedstocks: 1. C-heavy and B-heavy molasses 2. Sugarcane juice and sugar syrup 3. Surplus rice from the Food Corporation of India 4. Crude palm oil Which of the above is/are correctly identified as approved feedstocks for producing ethanol supplied to Oil Marketing Companies under the EBP Programme?

  1. C-heavy and B-heavy molasses
  2. Sugarcane juice and sugar syrup
  3. Surplus rice from the Food Corporation of India
  4. Crude palm oil
  • A. 1 and 2 only
  • B. 1, 2 and 3 only
  • C. 2, 3 and 4 only
  • D. 1, 2, 3 and 4
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