India: Onion arrivals fall 16% w-o-w across key markets

• Arrivals fall in 6 of 7 key markets as supply tightens across major growing belts
• Crop damage during early monsoon, recent heavy rainfall disrupt supplies

Onion arrivals across seven key markets fell 16.4% w-o-w to 55,980.55 quintals (qtl) during 9-16 September, from 66,959.17 qtl during 2-8 September. Arrivals declined in six of the seven tracked markets, with Ahilyanagar the only exception.

Notably, total arrivals declined by 10,978.62 qtl during the week, led by Indore, Delhi, and Solapur. Higher arrivals in Ahilyanagar partly offset the reduction.

The decline comes amid tighter availability from major growing belts, with crop damage during the initial monsoon period and stronger demand contributing to lower supplies in Maharashtra markets. Recent heavy rainfall in parts of the state may also have disrupted harvesting and movement toward the end of the reporting period.

Indore remains largest arrival centre

Indore recorded the highest arrivals among the tracked markets at 20,661.45 qtl, down 23.7% w-o-w from 27,086.07 qtl. Its modal price stood at INR 3,747/qtl on September 16.

Solapur arrivals declined 20.7% w-o-w to 8,272.90 qtl from 10,431.80 qtl, with the modal price at INR 3,200/qtl. In contrast, Ahilyanagar was the only market to record higher arrivals, rising 18.4% w-o-w to 9,481.60 qtl from 8,009.10 qtl. Its modal price stood at INR 3,100/qtl.

Mumbai arrivals fell 10.7% w-o-w to 6,448.10 qtl from 7,220.90 qtl, while the modal price was INR 4,100/qtl. Mumbai has also been reporting reduced supplies, with traders linking the supply shortfall to earlier crop damage and stronger demand.

Pune arrivals declined 5.8% to 5,841.60 qtl from 6,198.80 qtl, while its modal price was INR 3,000/qtl.

Delhi, Nashik arrivals decline

Delhi recorded the sharpest percentage decline among the tracked markets, with arrivals falling 38.4% w-o-w to 3,981 qtl from 6,462.60 qtl. The modal price in Delhi was INR 3,406/qtl on 16 September.

Nashik arrivals declined 16.5% w-o-w to 1,293.90 qtl from 1,549.90 qtl, while the modal price stood at INR 4,200/qtl, the highest among the tracked markets. The Nashik region also experienced heavy-rain warnings during 14-15 September, potentially affecting the movement of produce into markets.

Outlook

Tighter supplies from major growing regions could support onion prices in the near term, particularly as demand remains firm. However, the extent of any price upside will depend on the pace at which arrivals recover after the recent weather disruptions. As of 16 September, modal prices were highest in Nashik at INR 4,200/qtl, followed by Mumbai at INR 4,100/qtl.