New Delhi, April 27 (IANS) States may now impose and enforce sugar stock limits as the union cabinet on Wednesday gave its approval to bring sugar under the purview of imposing stock holding limits on dealers of sugar.

The move is aimed at controlling the spiralling prices of sugar.

"The government has noticed that in spite of sufficient availability of sugar stocks with the sugar mills, the wholesale and retail prices have shown a spurt," an official statement said.

"In order to check the inflationary tendencies in sugar and to reduce hoarding by wholesalers and retailers, the government felt an immediate need to bring sugar within the purview of stock limits," it added.

The decision will empower state and central agencies to impose stock limits and regulate supply, distribution, storage and trade of sugar to bring down sugar prices by curbing unscrupulous trading.