The Uttar Pradesh government is likely to impose stock limit on sugar this week to check hoarding and black marketing.
"The stock limit on sugar may come in force this week," a senior state government official said.
At present, sugar prices in the state are ruling over Rs 34 per kg.
Under the stock limit order, traders can store a maximum of 200 tonnes of sugar at any point of time and they have to sell the sweetener within 30 days of receiving from sellers.
The UP government, has taken the decision following an appeal by the Prime Minister, who asked states to take action against hoarding and black marketing. Five months ago, Centre empowered states to impose restrictions.
Last month, at a conference of state chief secretaries, Prime Minister Manmohan Singh had asked them to take stringent action against hoarders to curb rising prices of essential commodities.
The Centre had issued the stock limit order on sugar in March, which was valid till July. However, it has extended the restriction till January 8, 2010.
Many states like Maharashtra, the largest sugar producer, Madhya Pradesh, Andhra Pradesh and Karnataka have already imposed the stock limit on sugar.
Uttar Pradesh is estimated to have produced about 60 lakh tonnes of sugar in 2008-09 season (October-September) against over 85 lakh tonnes in the previous year.