As a result of the auctioning, retail price of sugar dipped to Rs.31 a kg before rising to Rs.34-35 a kg.
Coming down on the traders, Food and Civil Supplies Minister Paras Chandra Jain said, 'They are bound by law of the land and should cooperate or else the government would consider taking action.'
The minister said the decision to release the seized stocks lay with the district administrations and traders could move court to get it released.
'We have already allowed traders to stock 2,000 quintals of sugar and a reasonable profit margin. No action was taken against licensed traders,' Jain added.