Rao held discussions on the issue at a meeting with officials of Civil Supplies and Agriculture Marketing Departments.
Retail onion prices have already risen between Rs 30 to Rs 40 per kg, officials said.
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To keep a check on prices, 930 tonnes of subsidised onions have been supplied through "Rythu Bazaars" by the concerned department, the Chief Secretary informed.
He directed officers to prepare an action plan to look at the possibility of importing onions from outside the state, in case of crop failure due to bad weather, an official release said.