The city government maintained that there was no shortage in onion supply in the city even as prices have increased to Rs 40 per kg in the retail market against Rs 20 per kg a month back.
Traders said the prices of onion have gone up due to two-and-half year high rates in the Maharashtra's wholesale market on account of tight supply.
Food and Supply Minister Harun Yusuf, after a meeting with representatives of wholesale fruits and vegetable markets and officials of his department, said government has decided to come down hard against hoarders of onion.
In the Mother Dairy's Safal outlets, which has more than 400 stores in the NCR, onions are being sold at Rs 36-37 per kg while local vendors are charging Rs 40 per kg.
Azadpur Mandi's Onion Merchant Traders Association President Surendra Budhiraj said that wholesale rate in Delhi has increased to Rs 22-27 per kg since last one week as supply from Madhya Pradesh has come down substantially due to rains.
"The government is concerned about rising prices of potato, tomato and other vegetables as well. The retail traders have hiked the rates of these vegetables citing cut in supply which is not true. We will take action against the retailers who are charging high rates," said Yusuf.
The Food and Supply Minister appealed to people to buy vegetables after checking the wholesale rates in the newspapers.
The meeting was attended by Development Minister Raj Kumar Chouhan also who looks after the running of the major wholesale vegetable and fruits markets.
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