New Delhi, July 28 -- The Centre has imposed stockholding limits on sugar dealers across the country from 1 August to 30 November to curb hoarding, discourage speculative trading, and ensure adequate sugar supplies at reasonable prices during the festival season.

The move follows an increase in ex-mill sugar prices that is "not supported by the prevailing demand-supply fundamental", the food ministry said in a statement.

"It has also come to notice that hoarding by certain traders, dealers and market intermediaries, along with speculative transactions and paper trade without the actual physical movement of sugar from mills, has contributed to creating an artificial perception of scarcity in the market," the release said.

Such practices...