India, looking to tame record sugar prices, has ordered that no dealer using more than 10 metric tons of the sweetener per month shall hold inventories for more than 15 days, a government order showed on Wednesday.
The order will come into force on September 1 and remain in force until November 30, the notification said.
On Tuesday, Reuters reported that India was considering measures to bolster sugar supplies and rein in record prices, including limited duty-free imports and tighter stockholding limits for bulk traders, potentially allowing overseas shipments for the first time in nearly a decade.
Last month, India, the world's biggest sugar consumer, ordered dealers to hold stocks for no more than 30 days, in a bid to bolster supplies.
Yet, Indian sugar prices have jumped 10% over the past month to a record high and are expected to remain high for at least the next three months as supplies tighten and festival demand gathers pace.
Patchy rains and dry weather conditions have hit the sugarcane crop, which typically requires copious amounts of water for irrigation.
Sugar is politically sensitive in India, where sweets are highly popular and many poorer households rely on it as a cheap source of calories.
