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Prices of onion increased by Tk 5.0 a kilogram (kg) in the capital's kitchen markets on Saturday, adding woes to the consumers further.
Traders attributed this hike in onion prices to a short supply of local varieties and a rise in import costs.
But market watchers find syndicate's hand in the spike.
Local onion retailed at Tk 35-42 a kg and imported one at Tk 32-36 a kg on Saturday morning.
Juel Rana, proprietor of Bismillah Store at West Dhanmondi in the city, said onion prices might rise further with the end of their older stocks.
The spicy item went up in price by Tk 4.5-5.0 a kg at wholesale markets like Shyambazar that day, he added.
The grocer told the FE that wholesale prices of local onion increased to Tk 38-40 a kg and that of imported variety to Tk 32-35 at Shyambazar.
After garlic and ginger, spice traders were raising prices of onion, Mr Rana disclosed.
He claimed big spice traders of Shyambazar in Dhaka, Faridpur, Pabna and Jashore were raising prices ahead of the upcoming Eid-ul-Azha for windfall profits.
Contacted, Shyambazar-based trader Haji Kamal Uddin said wholesale prices of local onion rose in Faridpur and Pabna, thus putting an impact on Dhaka's market.
Faridpur traders were selling Taherpuri variety of onion at Tk 1,200-1,210 a maund which was Tk 1,080-1,100 even a few days back, he cited.
Mr Uddin, however, claimed onion prices increased by Tk 1.5-2.0 a kg wholesale on the day under review.
Imported onion varieties have also become dear amid a surge in prices in India, he pointed out.
The wholesaler said import costs have increased to Tk 20-24 a kg which was Tk 14-16 a month ago.
"But the current price of onion is still much lower compared to that of last year," he argued.
When asked, Department of Agricultural Marketing asst director (market linkage) Mamata Hoque said the sudden hike in onion prices is illogical.
He said onion import costs are still below Tk 16 a kg when importers were selling the item at Tk 28-30 a kg.
Local growers have produced record onion this year, the official observed.
"So, raising price of the item by such a high margin might be artificial. A syndicate is active to make windfall profits ahead of Eid-ul-Azha."
Mr Hoque highlighted the need for strong market monitoring to prevent any artificial price hike or crisis of the commodity.
Bangladesh consumes 2.2-2.3 million tonnes of onion annually. But it produces 1.95 million tonnes only.
The country imports 0.8-1.0 million tonnes of onion per annum mainly from India and Myanmar.