Prices of onion have dipped by up to Tk 40 per kg in the capital's retail markets as the supply has surged sharply over the last two weeks.

Home-grown onion sold for Tk 100 to Tk 120 per kg yesterday, down from Tk 140 to Tk 160 two weeks back.

Imported Indian onions were selling for Tk 100 to Tk 110 yesterday, down from Tk 110 to Tk 120 a week ago.

Traders at Karwan Bazar, Shyam Bazar and Mirpur said onion prices had increased suddenly by Tk 30 to Tk 40 per kg three weeks ago due to rumours of a supply shortage.

However, the supply of both local and imported onion has since increased. Hoarders of local onions also started releasing their stocks as new harvests hit the markets, said the traders.

Sajib Sheikh, proprietor of Matri Bhandar at Karwan Bazar, said a shortage of local onions occurred three weeks ago because hoarders had not released their stock. This led the wholesale prices of local onion to soar to Tk 130 to Tk 140 per kg.

Mohammad Andul Mazed, a wholesaler and importer of onion and also the general secretary of Shyam Bazar Onion Wholesalers Association, said the current supply is abundant, with newly harvested onions now entering the market.

He said the prices may fall further in the next few days as the supply of fresh local onions increases.

Meanwhile, the price of potatoes has increased by Tk 5 per kg compared to last week, with the retail price reaching Tk 80 per kg yesterday.

Although new crops are entering the market, demand for old potatoes remains high due to their superior quality, according to traders.

Mohammad Sabuz, a wholesaler, said there is a shortage of potatoes in cold storage across the country, leading some traders to raise their prices.

While the government set the cold storage price at Tk 39 per kg, traders are buying potatoes from cold storage for Tk 65 to 67 per kg.

Sukkur Ali, a retailer, said they are not making good profits from potato sales because 5 to 7 percent of the potatoes are wasted.