Online Desk: The onion market has become volatile again as price of the key cooking ingredient shot up by Tk15-20 a kg overnight with neighbouring India’s announcement to set its maximum export price (MEP) at US$ 800 a tonne.

Price of the local-variety onion surged to Tk120-130 a kg while the imported ones sold at Tk100-110 a kg in Dhaka until Sunday evening.

Md Juel Rana, a West Dhanmondi-based grocer, said people also raise the volume of their purchase than usual prompted a rush buying, intensifying the price crisis further.

He added least amount of onion entered the city on Sunday amid a country-wide shutdown called by the opposition party which has had also an impact.

However, the government in September last fixed maximum retail price of onion at Tk65 a kg but the rate never could be implemented. The current price is double the government fixed rate.

Kamal Ahmed, a Rayerbazar-based trader, said import of onion almost stopped with the beginning of Durga Puja holiday in the West Bengal of India.

He added importers would hardly be interested to bring onion as the minimum import cost would be Tk100 for now excluding transportation cost and taxes.

Local seed onion (known as murikata) might hit markets within two to three weeks which could make prices cool for which importers wouldn’t take risk, he said.

Meanwhile, India-based The Economic Times reported that the country on Saturday imposed $800 a tonne MEP on onions being shipped from the country amid an increase in the cost of the tuber spice across the country.

The Directorate General of Foreign Trade (DGFT) of India notification reads the export policy change will go into effect starting Sunday, October 29 and will continue until December 31, 2023.