The best choice between the two options is Option 2 (Staging Table + SQL Stored Procedures) in terms of development speed and future maintenance. Here’s why:

Why Option 2 is Better?

Faster Development:

You can load the entire CSV into a staging table quickly without complex ETL logic.

SQL stored procedures efficiently handle inserts/updates using MERGE or UPSERT.

Easier Maintenance & Debugging:

All transformations and foreign key assignments happen in SQL, making debugging easier.

Errors can be logged directly within SQL procedures for troubleshooting.

Better Performance & Scalability:

SQL Server efficiently handles bulk inserts using BULK INSERT or OPENROWSET.

Processing happens inside the database, reducing data transfer overhead.

Reusability & Flexibility:

If the CSV structure changes, you only need to update the stored procedures, not an entire ETL pipeline.

You can schedule SQL jobs to automate the process.

When to Use Option 1 (ADF/SSIS)?

Use ADF/SSIS only if:

You need complex data transformations before loading.

Your CSV file structure frequently changes, requiring dynamic handling.

You require cloud-based integration or real-time data processing.

Final Recommendation:

Since your CSV is structured and involves multiple database tables, Option 2 (Staging Table + SQL Stored Procedures) is the best choice for efficiency and maintainability.

If your system evolves and requires cloud-based ETL, you can integrate ADF later.