With prices of onions and sugar ruling high, the Centre on Tuesday cracked the whip by imposing stock limits on the sweetener and asking state governments to roll out control measures to ensure availability of the bulb at reasonable prices.

To keep sugar prices under check during the festival season, the government imposed stock limits on sugar mills for the months of September and October.

“We have imposed stock limits on sugar mills for the month of September and October to keep prices under control,” Food and Consumer Affairs Minister Ram Vilas Paswan said on Twitter.

Sugar mills will not be allowed to hold more than 21% of their output in stocks by the end of September, and they have to bring down a stock level to 8% of output by the end of October, Paswan said.

Sugar prices are ruling at more than Rs 40 per kg in the retail market while branded sugar is available at Rs 50 per kg.

The government last month had increased import duty on sugar to 50%, up from 40%, to restrict cheap inward shipments and maintain domestic prices.

To keep onion prices on a leash, the Centre has asked state governments to undertake various measures such as de-hoarding operations and action against speculators and profiteers.

Though the supply of onions is better than last year, the average all India retail price has zoomed from Rs 15 per kg in July to Rs 28.94.

In the Metros the rise has been even steeper, with onions being sold at Rs 31 per kg in Chennai, Rs 38 per kg in Delhi, Rs 40 per kg in Kolkata and Rs 33 per kg in Mumbai.

“After examination of all the circumstances, Government has inferred that there are some other reasons than a shortage of onions, contributing to the abnormal price rise of onions like hoarding, speculation etc,” an official statement said.

Centre moves to check rising prices of sugar, onions