Sugar stocks surge upto 20% as UP government keeps cane price unchanged

MUMBAI: Shares of sugar companies surged higher in trade after the Uttar Pradesh government left sugarcane prices unchanged at Rs 280 per quintal for this crushing season.

The government has, for a second time in a row, kept the state advised price (SAP) unchanged. It was last increased in 2012-13, by nearly 17 per cent.

According to Nirmal Bang, the outlook on sugar companies continue to remain negative considering higher production of sugar as compared to consumption in current season which started from September onwards. Oversupply situation in global markets are also likely to keep prices under check.

At 03:00 p.m.; Bajaj Hindustan was 9.76 per cent up at Rs 22.50 on the BSE. It surged 11.95 per cent to touch intraday high of Rs 22.95.

Balrampur Chini was 18.14 per cent up at Rs 64.15 on the BSE. It surged 20 per cent to touch intraday high of Rs 65.15.

Dhampur Sugar was at Rs 50.05, up 4.49 per cent on the BSE. It surged 8.87 per cent to touch intraday high of Rs 52.15.

Upper Ganges was locked 20 per cent upper circuit at Rs 43.35 on the BSE.