'This may amount to cancellation of warehouse licenses,' Kesari said.

Meanwhile, the officials also found spurious ghee, vansapati and edible oils from the same warehouses in Morena.

'We were taken by surprise when spurious ghee and vanaspati stocks were recovered. The samples of these products are being sent to laboratory for testing and action will be taken against the culprits,' said Morena District Collector M.K. Agarwal.

Officials said 10 criminal cases have been registered against 42 people, including four transporters, for illegally stocking sugar.

Retailers said the continuous raids in the last few days had a positive impact on sugar prices.

'Raids have brought a halt to the soaring wholesale sugar price which has come down by Rs.50 to Rs.100 per quintal,' a retailer said.

Meanwhile, the food department has decided to issue licenses to sugar traders to check hoarding and control the price.

'We've received about 80 applications from traders dealing with sugar and we will issue them licenses after collector's approval,' said District Food Controller Harendra Singh.