It is interesting that prices of imported onion have increased more than those of the local variety. The local onion price has increased by 166.67 per cent, while the imported variety has increased by 188.89 per cent in one year, according to the Trading Corporation of Bangladesh (TCB).

Local onion was sold at Tk 20 to Tk 25 per kg in different markets of the capital in January 2017.  At present, the price is Tk 50 to Tk 70 per kg.

Imported onion was sold at Tk 20 to Tk 25 per kg in January 2017; it is now Tk 60 to Tk 70 per kg.  

However, during a visit to kitchen markets in the capital on Saturday, it was found that the local variety was selling at Tk 75 to Tk 90.  

Traders hope that prices of imported onion may decrease as India has cut onion prices by USD 150 per tonne, nearly two months after they raised it to USD 852.

According to a circular issued by the foreign exchange branch of India's commerce ministry, the minimum export price of onion had been reduced to USD 700 from USD 850 per metric tonne last Friday. This price will remain effective till February 20.

On November 23 last year, the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) fixed the minimum export price (MEP) of onion at USD 852 for each tonne, saying there was shortage in the domestic market.

India, to protect its market, increased the price of onions from USD 430 to USD 850 per tonne during November last year, according to reports.

In Bangladesh, this change was limited as supplies soared.

Bangladesh requires 20 to 22 lakh tonnes of onions every year. The country had to import 10.41 lakh tonnes during 2016-17 FY owing to production deficit.

Local onion suppliers say domestic onion growers are incurring losses due to a faulty import policy.

Mohammad Mofiz, an onion vendor, said: “When our farmers start selling their onions, India reduces the price. When our farmers sell their produce at a lower price, India raises prices of its onion. Local production has fallen because of this.”

Jakir Hossain, a buyer at Kawran Bazar, told The Independent: "Keeping the onion price at a tolerable level should be the main agenda here, rather than arguing over the reason for the hike."

The annual domestic demand for onion is 2.2 million tonnes. In FY 2016-17, 1.866 million tonnes were grown in the country, which is 1,31,000 tonnes more than the previous year’s production. This season, 1.049 million tonnes of onion have been imported, which is 0.34 million tonnes more than that of the previous year, according to Bangladesh Bank data.

Farida Akhter, executive director of UBINIG said, farmer-friendly agriculture policy is needed to remove product scarcity and unexpected rise in prices of product in the market.