India, Aug. 20 -- The central government has tightened the sugar stockholding limits, restricting large industrial buyers from holding more than 15 days of their requirement from September, as a sharp rise in sugar prices raises concerns about the availability of the sweetener ahead of the festive season.

The move assumes significance as the government is not merely tightening controls on traders, it is extending stock restrictions to the large consumers who buy sugar as a raw material - including confectioners, soft-drink manufacturers, food-processing companies, sweetmeat sellers and other institutional buyers.

Under an order issued on August 19, any bulk consumer using or consuming more than 10 tonnes of sugar a month will not be all...