In Maharashtra and UP I hear both FRP and SAP for sugarcane. How do they differ and which one do I actually get paid?
5 Answers
FRP is the Fair and Remunerative Price fixed by the central government as the minimum the mill must pay for cane, linked to a base recovery, while SAP is the State Advised Price that some states like Uttar Pradesh declare, usually higher than the FRP. In states that announce an SAP, mills generally pay the higher state price, whereas states without an SAP follow the central FRP. FRP also rises with higher sugar recovery above the base level, so richer cane can earn a premium over the base FRP. The two are different mechanisms, one central and one state, so what you receive depends on your state. For the current FRP, your state SAP if any, and the recovery linkage, confirm with your sugar mill cane department or state cane commissioner.
In UP we usually get the SAP since the state announces it, and it has been above the central FRP. My cousin in a state without SAP just gets the FRP. So it really depends where your mill is.
One point worth knowing is that the FRP is tied to a base recovery, so if your area's cane has higher recovery the FRP itself goes up with a premium. So even within the FRP system, richer cane can mean a better rate. Ask the mill how the recovery linkage applies to your supply.
Simply put, FRP is the central floor and SAP is the higher price some states declare on top. In Maharashtra it is mostly the FRP framework while in UP we go by the SAP. Do not assume the neighbouring state's rate applies to you, check what your own state has declared this season at the cane department.
Worth remembering that whatever the declared rate, the mill sometimes pays in instalments rather than the full amount at once, especially when sugar prices are low. So the rate on paper and the cash timing are two different things. Keep your slips and follow up through the society for the balance, and check the dues on the state cane portal if your state has one.