Shares of Bajaj Hindustan Ltd, Indias biggest sugar refiner by sales declined Rs 5.6, or 9.5%, to 53.50 on the Bombay Stock Exchange, its lowest since July 26, 2004. Balrampur Chini Mills Ltd. dropped Rs 6.55, or 12%, to Rs 45.95, the lowest since December 2, 2004, while Renuka Sugar fell by 7.5%.
Meanwhile, the major sugar players from the state have reacted angrily to the latest decision of the UP government.
Vivek Saraogi, MD, Balrampur Chini, told mediapersons that his company would be challenging the decision in the court as it was against a rule issued by the Supreme Court .
The SAP is not based on economic consideration and is not a formula linked to sugar price, Saraogi said. Industry sources said that with sugar output expected to fall to around 21 million tonne to 22 million tonne this year against last years 28.5 million tonne, mills will be under immense pressure to source cane from farmers.