India, Aug. 24 -- The Maharashtra government has launched a statewide exercise to physically verify sugar stocks held by mills and traders amid a sharp rise in retail prices and the Centre's suspicion that hoarding may be contributing to the surge.

Teams from the Food and Civil Supplies Department will inspect traders' stocks, while the Sugar Commissionerate will verify stocks at sugar factories and check whether sugar sold by mills is being lifted by designated dealers within the stipulated period.

The decision was taken on Friday, following directions from the Union government after retail sugar prices rose sharply. The Centre has attributed the increase to lower closing stocks, higher festive demand and alleged hoarding and speculati...