Onion prices have soared by Tk10 per kilogram in Chittagong ahead of Eid-ul-Azha, leaving consumers to bear the brunt.
While visiting different kitchen markets of the port city on Sunday, it was found that the local and imported onions were being sold at Tk50 and Tk40 respectively.
The prices of onion had been fluctuating between Tk25 and Tk28 for a long time in the retail markets of Chittagong before the price hike.
According to traders of Chaktai and Khatunganj wholesale markets, the prices of commodities rose due to the price hike on imported products and the damage caused by water-logging to onions stored in the warehouses in the city commodity hubs.
Mahbubul Alam, president of Chittagong Chamber of Commerce and Industry (CCCI), said: "The traders incurred a loss of Tk300-400 crore due to the water-logging in the Chittagong commodity hubs."
According to a Khatunganj market trader Md Idris, the Chittagong onion market is highly dependent on India. Excessive rainfall has damaged onion croplands in India recently which led the country to increase price on its export items.
Although Bangladesh annually produces more than 1.7 million tons of onion, it has to import five to eight lakh tons a year to fully meet domestic requirements.
In the first 11 months of last fiscal year, a total of 1.41 million tons onion were imported, according to Bangladesh Bureau of Statistics.
Currently, onions are being imported from Nashik mostly, a city in the northwest region of Indian state Maharashtra.
The bullish sentiment about onion is backed by three factors: procurement by Madhya Pradesh government, heavy rainfall in Gujarat and expectations of a lower and delayed crop in Karnataka, reported The Economic Times.