State advised price
Also called: SAP · Topic: Agricultural Marketing, MSP, Buffer Stocks and PDS · NCERT: Beyond NCERT
Meaning
The state advised price (SAP) is a sugarcane price announced by some state governments. It is set above the Centre's fair and remunerative price (FRP), which is the legal minimum that mills must pay. In states that announce an SAP, mills must pay the SAP instead of the lower FRP. States use it to give cane farmers extra support, often for political or local cost reasons.
Example
Uttar Pradesh, Punjab and Haryana announce SAPs. A sugar mill in Uttar Pradesh must pay farmers the SAP. Only paying the Centre's FRP is not enough there.
Don't confuse with
- Fair and remunerative price (FRP): FRP is fixed by the Centre and applies across India as the legal minimum. SAP is fixed by individual states and is higher.
Related concepts
- Minimum support price
- Price support
- A2 cost
- A2+FL cost
- C2 cost
- C2+50% formula
- Fair and remunerative price