The government, on Monday stopped mass consumers of sugar from preserving more than 15 days of stocks with them for the next 6 months. This limitation on stock would be relevant to those consumers who consume one tonne or more sugar in a month.

This act will bear upon confectioneries, large biscuit and beverage making units.

The central government observes that some mass consumers are taking sugar as a raw material and are stocking sugar in expectancy of further rise in costs of sugar in the market. This affects the genuine consumers to get adequate sugar and raises the price in market.

Domestic sugar production in the present season is approximated at a 3 year low of 14.7 million tonnes. Accordingly, costs have been on an upturn. Many companies are selling sugar at an ex-factory cost of Rs 3,000 per quintal. At the retail level, sugar is trading at a record Rs 34-35 per kg.

According to the Central government, the sugar might get more costly, because in this season output was not enough and an inadequate sugar cane crop is expected next season too.