New Delhi, Bhopal: Police across India are now the hunt for hoarders and out to seize sugar because rising at about 30-35 per cent a week, it has been one of the costliest food items.
The Central government imposed limits on how much your neighbourhood retailer can stock.
"In order to check hoarding and black marketing of sugar, stock holdings and turnover limits have been imposed on sugar trade till January 2010. So far, only 16 states have put in place the necessary licensing mechanism to follow these limits," said Union Agriculture Minister Sharad Pawar.
Madhya Pradesh, the first state to order raids, is already seeing an impact. Here, sugar prices have fallen by about Rs 4 a kg in the past week.
"The prices are down because the government has become strict and is continuously raiding. The sugar flow was quite irregular in the market and consequently the prices were going up," said Pankaj Aggarwal, a shopkeeper.
Traders have been stocking sugar, waiting for further hike by creating an artificial shortage in the market .
The government says production for the next season isn't looking very bright. And despite raids, sugar may not fall too much from its high.