Consider the following statements:
1. The Union Government fixes the Statutory Minimum Price of sugarcane for each sugar season
2. Sugar and sugarcane are essential commodities under the Essential Commodities Act
Which of the statements given above is/are correct?
1. The Union Government fixes the Statutory Minimum Price (SMP) of sugarcane for each sugar season. The SMP is the price below which the sugarcane cannot be purchased by the sugar mills from the farmers. The SMP is fixed on the recommendation of the Commission for Agricultural Costs and Prices (CACP), which takes into account the cost of production, the demand-supply situation, and the fair remuneration of the farmers. 2. Sugar and sugarcane are essential commodities under the Essential Commodities Act. The Act empowers the government to regulate the production, supply, and distribution of essential commodities in the country. The government can impose stock limits, regulate prices, and take other measures to ensure the availability of essential commodities at fair prices. Therefore, both statements 1 and 2 are correct.