The Uttar Pradesh government has increased the state-advised price of general varieties of sugarcane to Rs 360 per quintal—a hike of Rs 20 per quintal—for the rest of FY24.
The SAP for general sugarcane was last raised to Rs 340 per quintal in FY22.
Currently, Balrampur Chini Mills Ltd. and Bajaj Hindustan Sugar Ltd. have a large exposure to Uttar Pradesh.
Balrampur Chini has 10 sugar factories in Uttar Pradesh, with an aggregate sugarcane capacity of 80,000 tonnes per day. Bajaj Hindustan Sugar operates a network of 14 mills in the state, with a daily capacity of 1.36 lakh tonnes.
Shares of various sugar mills declined after the announcement, with those of Dhampur Sugar Mills Ltd. falling 2.38%. Ugar Sugar Works Ltd. and Dalmia Bharat Sugar and Industries Ltd. stock fell 1.5% and 1.3%, respectively.
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