New Delhi, July 28 -- The government has imposed stock holding limits on sugar dealers to safeguard consumer interests and maintain price stability with effect from August 1, as per a statement by the Ministry of Consumer Affairs, Food & Public Distribution.

According to the release, the government has observed that the recent rise in ex-mill sugar prices is not supported by prevailing demand-supply fundamentals.

It noted that hoarding by some traders, dealers and market intermediaries, along with speculative and paper transactions without actual physical movement of sugar from mills, has created an artificial perception of scarcity.

"Such practices have resulted in avoidable price volatility and an increase in both ex-mill and retail ...