Prices of onion have started increasing in the city kitchen markets after a month of stability.
Traders attributed the hike to local onion stock crunch and export price hike of the item by the Indian government.
Market experts expressed their concern over the syndication of importers and big traders for the rising trend of onion prices.
Onion was sold at Tk 42-45 per kg (local) and Tk 38-42 per kg (Indian) in the city's kitchen markets on Monday, marking a 5-7 per cent increase in last three days, according to retailers.
"Before the recent hike, onion prices were almost stable for the last one month", Abdur Rashid, a retailer at Banalata Kitchen Market under New Market area, in the city said.
He said the price of imported onion (Indian) was Tk180-200 per palla (5 kg) at Shyambazar wholesale in the city on Monday which was Tk170-180 per palla three days back based on their quality.
Local onion was sold at Tk200-220 per palla, he said.
A trader at Shyambazar in the city said increased import cost is responsible for the price hike of Indian onion.
He said the country's import dependency has gradually been increasing, as the demand for onion has almost doubled in a decade.
The trader also said that stock of local onion is being decreasing which is causing the hike.
However, India on June 30 this year fixed minimum export price of onion to US $500 per tonne, which was fixed at $300 per tonne on June 17 from the previous price of $150 per tonne.
The government of the neighboring country restricted onion export to keep its prices cheaper there, sources said.
An official at the Department of Agriculture Extension (DAE) said the country has produced nearly 1.6 million tonnes of onion this year and there is no reason for scarcity of onion in the market before September-October period.
Agriculture expert Delowar Jahan said imported onion will cost no more than Tk 39 per kg, including transportation cost, considering the new export price in India.
He said imported onion is dominating the onion market while alliance of importers and their allied traders is distorting the market stability.
"Increase of onion price by Tk1-2 at per kg in 30-40 days is tolerable until the beginning of harvest. But if it increases further, it will be simply a sign of market distortion," he said.
He also suggested that the government should strictly monitor the commodity market, specifically the export volume and storage data of big importers and traders.
The demand for onion is now 2.0 million tonnes while the country produces 1.6-1.7 million tonnes of onion annually, according to the government data.
