After a continual surge for the last one and a half weeks, onion prices started declining in the wholesales from Saturday morning in the city thanks to rising supply of seasonal 'haali' onions.
Local onion on Saturday was traded at Tk 32-Tk 42 a kg in different wholesale markets in the capital which was Tk 40-48 a kg on Thursday.
However, the prices of onion were yet to show a plunge in the retail markets until Saturday evening as local onion was sold at Tk 48-Tk 55 a kg while imported Chinese and Turkish varieties at Tk 35-42 a kg on the day.
Before the latest development, local onion witnessed 72 per cent and imported varieties 97 per cent hike in last one and a half weeks in the retail markets, according to the Trading Corporation of Bangladesh (TCB).
However, grocers and spice vendors said the prices might also show a decline in the retails from Sunday morning with the end of their old stocks.
Helal Uddin, a Shyambazar-based wholesaler in the city, said prices increased last two weeks amid end of supply of early seed onion known as 'murikata' which comprises minimum 20 per cent of total onion output.
He also said supply of seasonal onion has started rising with the start of harvest in onion growing districts.
"Shyambazar wholesalers are selling onion at Tk 32-35 a kg (on Saturday) which are being traded at Tk 35-42 a kg in other wholesale markets in the city," he added.
Mr Uddin mentioned that prices also showed a Tk 8.0-9.0 decline per kg in the farm level in last two days as local onion was selling at Tk 28-Tk 30 a kg in Rajbari, Faridpur, Gopalganj and other districts since Friday evening.
Assistant Director at Department of Agricultural Marketing TM Rashed Khan stated prices of onion also started declining drastically in neighbouring India last week to Rupees (Rs) 9.0 -Rs 15 from Tk 10.5-Tk 17.5 a kg in the wholesales.
Mr Khan said such drop in onion prices in the neighbouring country might also make an impact on Bangladesh market.
He said, "Our local farmers have raised onion cultivating land notably this year aiming to get some profits and their production costs increased by 15 to 20 per cent this time".
The government should continue the present 10 per cent import duties to safeguard the local producers, he said.
According to the Department of Agricultural Extension (DAE), onion acreage has increased to 0.26 million hectares this year from 0.23 million hectares last year.
DAE said it is expecting an all-time high 2.9 million tonnes of production.
However, the country produced nearly 2.0 million tonnes of onion last year against a demand for 2.5-2.6 million tonnes.
The shortfall was met through import mainly from Myanmar, Turkey, Egypt, China, Pakistan and India.
