Even if the government managed to lock down ALL the illegal ammo manufacturing.
That would simply drive up the price of the ammo to the point where stealing it from the private citizens would become cost effective.
Or hijacking the ammo shipments (they have to ship it somehow).
Or robbing the gun shops.
Think Prohibition and Al Capone. And THAT was just about wine and beer and such.
Enforce the laws we have.
The REAL problem we have is that the judicial system is flooded with "criminals" from the "war on drugs".
Again, we haven't learned a single lesson from our Prohibition experiment.