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With reference to Indian Economy, consider the following statements:
1. Under the Fair and Remunerative Price (FRP), the sugar mills are legally bound to pay to sugarcane farmers for the procurement.
2. The FRP is decided by Commission for Agricultural Costs and Prices (CACP), whose members include Minister of Agriculture and Defence Minister.
3. The State governments determine their own State Advised Price (SAP), which is usually higher than the Fair and Remunerative Price.

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