Confused between central FRP and state SAP for sugarcane. Which one do I get paid in Uttar Pradesh?
3 Answers
FRP, Fair and Remunerative Price, is the central government minimum that every sugar mill in India must pay for cane, fixed at a basic recovery rate. SAP, State Advised Price, is an additional price that some state governments such as Uttar Pradesh, Punjab, and Haryana declare, and it is usually higher than FRP. Where a state declares SAP, mills in that state must pay the SAP, not just FRP, so in Uttar Pradesh you are paid as per the UP declared SAP for your cane variety category (early, general, or reject). FRP is paid in states without a SAP, like Maharashtra and Karnataka. Check the current UP SAP for your variety category with your sugar mill or cane department, as it is revised each season.
In our UP belt we always look at the SAP the state announces, not the FRP, because mills here pay the state price. The early maturing varieties get a higher rate than general ones, so variety choice affects payment too.
One more thing many forget, FRP is linked to recovery while the UP SAP is a flat rate by variety category regardless of your individual recovery. So in UP an early variety in the higher category pays you more even if your recovery is average. Plan your variety mix with the category rate in mind.