Remember the onion price shock last year? This time, the govt is acting early

livemint.com:

mandi, India's largest vegetable wholesale market, sparking fears that prices could soar in the weeks and months ahead. Supplies from the onion hub of Nashik in Maharashtra have been lower than usual, an official who attended the discussions said, adding though the situation is not alarming yet, the government does not want to take chances. "If this continues for some time, we may ask traders to declare their stocks, and if this fails, the next step will be imposition of stock limits," the official said on condition of anonymity.

“The discussions are at a very early stage. We will take a call depending on the situation going forward." Most of the onions sold across North India come from India's onion belt of Nashik, Pune and Ahmednagar. Prices may start to rise further if supplies remain low, something the government wants to avoid given that several assembly elections are due this year, especially since steep onion prices have often influenced voting choices.

All-India average retail price of onion on Wednesday was ₹43.4 per kg, up 69.5% from a year ago, consumer affairs ministry data showed. Queries sent to the secretary and spokesperson of the consumer affairs department remained unanswered at press time. The government had banned onion exports in December last year to ensure adequate supplies in the domestic market, following dry weather that hurt crop and tight global supplies.