PUNE: The Rs 25/qtl increase in the Uttar Pradesh (UP) government's state advised price (SAP) for sugarcane for the season SY2016-07 is likely to result in an increase in the cost of production by around Rs. 2,500/MT of sugar. However, given the likelihood of healthy sugar realisations and sugar recovery rates, ICRABSE -3.93 % expects that most UP-based sugar mills, especially the efficient and integrated ones, are likely to be able to absorb the costs and still remain profitable. Mr Sabyasachi Majumdar, Senior VP, ICRA, said, "We expect sugar prices to remain steady in the next 3-4 quarters, given the domestic and global supply deficit.