The price of onion has surged from Tk60 per kilogram to Tk100 overnight as India decided to stop onion export to Bangladesh.
On Monday morning onion imported from India was sold at Tk100 in capital's Kawran Bazar, which was Tk60 on Sunday night.
Simultaneously, the price of locally grown onions soared Tk30 per kilogram as the price hiked from Tk70 to Tk100.
"We have been buying both local and Indian onions for a higher price since last night and this is causing the price abnormality," said Mahbub Alam, an onion trader in Kawran Bazar.
He also said that the price of local onions is expected to surge more once the Indian onion stock runs out.
On September 13, India set the minimum export price of onions at $850 per tonne to protect their local market price as recent floods hampered onion output in the state of Maharashtra.
Barely a day later, onion prices in the local retail markets rose from Tk45 per kg to Tk70.
On September 29, the neighbouring country stopped exporting onion to Bangladesh.