The prices of imported onion increased by around Tk 6.0 to Tk 10 per kilogram in the last 10 days at the wholesale market after Indian supply disrupted, traders said.
The Times of India reported that onion supply fell due to the unseasonal rains and hailstorm in the Indian district of Nasik in the past two days, causing average wholesale prices at the country's largest onion market at Lasalgaon Agriculture Produce Market Committee (APMC) increased by 5.0 per cent.
"The harvesting of onion in India destroyed due to rainfall as well as the transportation cost in India increased straight double," Abul Kalam Azad, an onion importer of Shyambazar told the FE.
The average wholesale onion price at the Lasalgaon APMC was recorded at Rs 1,650 a quintal on Saturday, against Rs 1,500 a quintal on Friday due to the decline in supply. The minimum and maximum prices were recorded at Rs 1,000 and Rs 1,701 a quintal, respectively.
Mr Azad said the price of imported onion was showing downtrend in the last couple of days as importers scaled back import purchase.
But the price of imported verity increased recently due to supply shortage, he added.
The price of a kilogram Indian onion (Nasik) is now selling between Tk 34 and Tk 35 at wholesale market which was sold between Tk 24 and Tk 25 one week back.
The prices of verity coming from India's Southern region increased by Tk 6 per kg and selling at Tk 29 to Tk 30 while verity come from Hugli also increased by Tk 8 per kg and selling at Tk 30 to Tk 31.
Retailers sold a kg of imported onion between Tk 35 and Tk 40 on Sunday, up from Tk 30 to Tk 35 one week back, according to different kitchen markets of the city.
Mr Azad apprehended that the import cost of a tonne of Indian onion is now at US$ 305 and it might reach US$ 350 due to supply shortage.
He said the consumers are waiting for the full-fledged supply of local onion verity of winter season as it has already started to enter the market.
The country produces 1.6 to 1.7 million tonnes of onion annually while the demand is around 2.0 million, according to the Department of Agriculture Extension.
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