MUMBAI: Shares of sugar companies continued to rise on Monday after the Uttar Pradesh government's announcement on Friday of an 8.9% hike in state advised price (SAP) of sugarcane for the current crushing season (2016-17). Stocks such as Mawana Sugars and Oudh Sugar Mills gained between 11.7% and 8%.
The government has kept sugar price hikes in check, analysts said, and companies are likely to stick to the current levels of `36-39 per kg. Analysts expect a maximum of 5-10% increase in stocks of sugar companies in the current quarter.