The shares of major sugar companies witnessed a steep downfall on Bombay stock exchange on Monday trading. The shares of Bajaj Hindustan Ltd declined Rs 5.6 and closed at 53.50. The company is the biggest refiner by sale of the country. Balrampur Chini Mills Ltd. also saw share decline of 12% which is the lowest since December 2.

The shares downfall came after the decision of UP government to hike the cane prices in the state. UP government had hiked the state administered price (SAP) of sugarcane by Rs 15 per quintal for the new crushing season. UP is the largest sugar producing state of India and many leading cane companies are located in the state.

Meanwhile, various sugar companies rejected the revised prices of sugarcane. Balrampur Chini MD, Vivek Saraogi said the company would knock the doors of court against the unilateral decision of UP government. He said that the industry should be involved in the any decision regarding cane price revision.