The central government has further reduced the stock holding limit for onion to 2 tonnes from 5 tonnes for retail traders as part of efforts to check hoarding and boost domestic supply of the kitchen staple.
In a statement, the Consumer Affairs Ministry directed the state governments to undertake anti-hoarding operation with immediate effect on retail traders.
Last week, the ministry had reduced the stock holding limit for retailers to 5 tonnes from 10 tonnes while that on wholesalers to 25 tonnes from 50 tonnes as onion prices were ruling high up to Rs 150 per kg.
With retail prices failing to cool down, the ministry has further reduced the stock limits on retailers to 2 tonnes from the existing level of 5 tonnes with immediate effect, the statement added.
Retail onion prices have risen in the past two months due to short supply owing to fall in production of kharif (summer) crop after heavy rains.