First, it is important to mention why onion is such an important vegetable for India. During the 1980 elections, dubbed "onion rings" by Indira Gandhi, where a shortage of vegetables resulted in the victory of the Indian National Congress. In turn, in 1998 the Indian People's Party lost power in the local elections of Delhi on the day on which the onion reached the price of 50 rupees. As a result, the onion "curse", already largely based on politics, caught the government of Prime Minister Modi. Due to the risk of a diplomatic conflict with Bangladesh, the government has banned the export of onions and introduced purchase limits for wholesalers to limit speculation and, of course, to keep the goods in warehouses.
 
As a result, the introduced limits triggered strikes by wholesalers in the city of Lasalgaon, by the way at the largest onion market in Asia. This was followed by immediate price increases and raids by tax services on the offices of 14 wholesalers, announced by the authorities.
 
India introduced a ban on the import of onion seeds and decided to import the raw material from Egypt. Equally important, the onion must reach India before Diwali, the largest Hindu festival, which falls in mid-November.

Source - https://biznes.interia.pl/gospodarka/news-azja-pld-kryzys-cebulowy-moze-oslabic-wplywy-indii-w-regioni,nId,4741328

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