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The government has attributed the recent sharp spike in prices primarily to hoarding and speculation, rather than any actual shortage of sugar. A nationwide physical verification exercise at sugar mills has reaffirmed that adequate stocks are available across the country. In several instances, mills were found to be holding stocks higher than the quantities declared in their monthly returns submitted to the government.
The exercise also identified cases of short selling, where sugar mills were selling less sugar than the quantity allocated to them under their monthly quota. According to the government, such practices can unnecessarily constrain supplies in the market despite adequate physical availability. The government has therefore made it clear that there is no justification for panic buying or excessive stocking of sugar
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