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Although the newly harvested onion has hit the market, the price of the spice still remained much higher, market observers said.
Experts held market syndicates responsible for the higher price while the traders attributed it to delayed arrival of the local variety and surge in import costs.
Newly harvested onion, locally known as 'Murikata', hit the city markets at Tk 80-Tk 90 a kg as compared to Tk 28-Tk 32 a kg during the corresponding season of last year, according to the Department of Agricultural Marketing (DAM).
Older stock of local onion showed a slight decline and sold at Tk 120-Tk 125 a kg while imported varieties remained static at Tk 80-Tk 90 a kg in the retail markets on Tuesday.
State-run Trading Corporation of Bangladesh (TCB) data showed that the price of the spice item was now 223-237 per cent higher than that of last year.
Consumers Association of Bangladesh (CAB) secretary Humayun Kabir Bhuiyaan said that big importers and their allied traders were dominating markets of both imported and local onion, flitching the consumers.
According to him, the country now produces more than 85 per cent of the onion demand. But the importers were fixing prices of both local and imported products, he said.
Imported onion, brought at Tk 35-Tk 50 a kg in September-November period, was now selling at Tk 80-Tk 90 a kg while the local variety at Tk 120-Tk 130 a kg in the market.
He said lack of government monitoring might have been encouraging the traders to fix prices at their wish.
Bangladesh Institute of Development Studies (BIDS) former director general Mustafa K Mujery told the FE that if the market went to the hand of a section of traders, it could affect the interest of consumers.
"If the government intends to protect consumers, it will have to create a competitive market," he said, recommending the government to enhance its monitoring capacity.
Besides, the capacity of state-run TCB should be increased to give consumers some relief, he added.
Contacted, Shyambazar based importer Abdul Aziz said the local market was highly linked with that of the international ones.
He said import cost surged to Tk 72-Tk 75 a kg as India slapped a minimum export price of US$850 per tonne from November 23.
He said that the delayed arrival of the early variety of onion has also caused a price hike this year.
"Onion prices will be eased within a week with the increase in supply of 'murikata' variety," he said.
He said importers have almost stopped opening new L/Cs, following the possibility of plunge in prices of the spice in the domestic market as newer onion starts entering the market.
According to Bangladesh Bureau of Statistics and Ministry of Commerce, the country produces 1.78 million tonnes of onion this year, imports another 0.9 million tonnes while the annual demand was highest 2.2 million tonnes-with nearly 0.5 million tonnes of surplus supply.