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Prices of local onion showed a decline on Sunday, but the spice is still traded at as high as Tk 190-200 a kg at retail level.
Prices of imported onions also dropped by Tk 10-20 a kg on the day, and were sold at Tk 50-100 a kg.
The prices declined, as supply of local early variety, known as 'murikata', increased in some districts after stoppage of rain, said traders.
But they could not see any hope for normalcy in prices of the item in this season.
Meanwhile, the high prices of onion caused rise in crowd before the Trading Corporation of Bangladesh (TCB)-run open market sale (OMS) trucks, where people can buy the spice at a subsidised rate of Tk 35 a kg. Many consumers also alleged supplying poor quality of onion by the government entity.
After remaining almost static for a month in December, onion prices started increasing notably from Thursday morning.
The price of 'murikata' reached Tk 200-240 a kg on Saturday from Tk 90-110 a kg on Wednesday. However, a slight rise in supply helped easing the prices on Sunday.
Prices of onion declined by Tk 40-45 a kg at wholesale markets, as the spice was sold at Tk 165-175 a kg at Shyambazar and Tk 175-180 a kg at Karwan Bazar and Beribadh-Rayer Bazar wholesales.
Nondo Kumar Ray, manager of Shapla Banijjaloy at Shyambazar, a spice wholesaler, told the FE that onion supply increased from Sunday.
Farmers have collected a good quantity from fields after the rain stopped in Faridpur, Rajbari, Natore, Pabna and elsewhere in the country.
He said they cannot say anything in advance about the supply or price of local 'murikata' onion for now. If its supply continues to grow, prices might decline.
Mr Nondo said he bought onion at Tk 157 a kg from Goalando, Rajbari, and was selling it at Tk 168-170 a kg on the day.
"Prices of onion might remain higher in this season until a massive decline in Indian onion prices."
He also said onion prices declined to some extent in India, as now it is selling at Rs 80-100 a kg (Tk 96-120).
"But the country is yet to lift the export ban amid volatility in its own market."
Narayan Chandra Saha, proprietor of Nabin Traders at Shyambazar, said overall production of 'murikata' has declined this year, as many farmers sold seed onions in October-November period for getting more profit.
He said seasonal onion or 'haali' will enter the market from February, and before that they will have to depend on 'murikata'.
Besides, hundreds of traders have started opening L/Cs in last two days to import the spice from Egypt, Turkey and China. Imports should be continued to keep the market normal.
The commerce minister recently said 0.2 million tonnes of onion will be imported through both private and government channels from global sources for ensuring smooth supply of the item before the holy Ramadan.
Meanwhile, the TCB is selling onion at Tk 35 a kg through 200 trucks across the country. A consumer can buy maximum two kgs from a truck. Per truck contains one tonne of onion.
Many claimed on Sunday that they found 20-30 per cent of the produce, supplied from the trucks, rotten.
Ashraful Alam, a car driver of the government pool, purchased two kgs of onion from the OMS outlet near National Press Club in the city on Sunday morning.
He said only 10-12 pieces of onion make two kgs, as they are large-sized.
"I got four onions, out of my total purchase, rotten," he told the FE.
An official at the TCB told the FE that they are buying onions, imported from Turkey and Egypt.
He said shelf-life of such onions is short, and present weather also caused harm to a good volume of the spice.
Quality of the onion will improve from Monday (today), as they will provide new imported ones.
According to the TCB, the current onion prices are 291 to 416 per cent higher than those of a year ago.