The Delhi government has decided to set up its own shops to sell onions at wholesale prices.
With onion prices soaring in Delhi, the food and supplies department on Tuesday cracked down on hoarders and black marketers, in an effort to control the spiraling prices. Over 50 teams from the department conducted raids at 500 places and slapped cases against the alleged hoarders under the Essential Commodities Act.
"Nearly 500-600 raids are likely to be conducted. It seems some wholesalers are resorting to hoarding," said Sajjan Singh Yadav, Delhi's Food and Civil Supply Commissioner.
The Centre has already urged state governments to crack down on hoarders and middlemen to check the rising prices of food commodities.
Union Food and Public Distribution Minister Ram Vilas Paswan has reiterated that the spike in onion prices is not due to a shortage in their supply; instead, he said, it was being driven by speculation over a poor monsoon.
"These problems are because of the black market," said Mr Paswan.
Meanwhile, at the largest mandi (wholesale market) in the capital, the supply of onions dropped by over 30 per cent, but the Delhi administration is still confident about keeping the prices in check.
In an innovative step, the state government has decided to set up its own shops to sell onions at wholesale prices to compete with retailers to stablise the prices.
Development Commissioner Puneet Goel has said that the Delhi government will sell onions and potatoes at wholesale prices through such stalls, 40 of which will be operational from Wednesday.
The government hopes to set up 200 such stalls within two weeks.