Continuing its sustained attack on food inflation, the Modi government on Monday wrote to the States, asking for supply chain hitches to be removed and action against hoarders and blackmarketers of onions in particular. Sources said Prime Minister Narendra Modi himself took stock of prices of essential commodities.
The Centre asked the States to crack down on hoarders after it found that the gap between wholesale and retail prices of onions was increasing. In Delhi, the retail price on Monday was between Rs. 25 and Rs. 30 a kg as against the wholesale price of around Rs. 18 a kg. Chhattisgarh, West Bengal and Delhi have sought the Centre’s permission to impose stock control orders on onion traders but the government is yet to decide.
The Centre has also convened a meeting with State Food and Consumer Affairs Ministers here on July 4 when the issue will be discussed, sources said.
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Some other steps to curb inflation include marginal increase in the minimum support price for crops, as last year. The step is expected to reduce the price distortion between market and government-determined prices. The government also announced export restrictions on onions and potatoes last week.