- Prices drop across all 7 tracked markets, Solapur, Ahilyanagar down 16% w-o-w
- Combined arrivals increase 32% w-o-w, adding to near-term supply pressure
India’s onion prices softened during the week ended 9 October amid a sharp increase in arrivals. Across the seven markets tracked by BigMint, Solapur and Ahilyanagar recorded the steepest w-o-w declines, while Nashik, Mumbai, Pune, Delhi and Indore also recorded lower prices. Combined arrivals rose 32.2% w-o-w to 50,249 t from 38,019 t, indicating increased supply availability across major trading centres and broad-based weakness in wholesale trade.
Onion prices decline across major markets
Indore prices declined 7.4% w-o-w to INR 3,622/quintal from INR 3,910/quintal, while Delhi prices fell 5.7% to INR 4,492/quintal from INR 4,762/quintal. Nashik recorded a 12.4% decline to INR 3,952/quintal from INR 4,510/quintal.
Solapur registered the sharpest fall, with prices dropping 16.4% to INR 3,820/quintal from INR 4,570/quintal. Ahilyanagar prices declined 16.2% to INR 3,782/quintal from INR 4,515/quintal. Mumbai and Pune also recorded decreases of 8.9% and 8.6%, respectively, to INR 4,060/quintal and INR 4,192/quintal.
The simultaneous decline in prices across all tracked markets indicates widespread selling pressure during the week. Higher arrivals in several major markets may have contributed to the downward price movement.
Arrivals surge by 32% w-o-w
Combined arrivals across the seven markets increased to 50,249 t from 38,019 t during the week, according to Agmarknet data.
Solapur arrivals rose to 13,286 t from 9,467.5 t, while Indore recorded an increase to 10,369 t from 8,864.95 t. Ahilyanagar arrivals climbed to 8,445 t from 6,168.1 t, and Mumbai arrivals increased to 6,845 t from 5,505.6 t.
Pune reported the most pronounced increase in arrivals, which more than tripled to 5,560 t from 1,751.41 t. In contrast, Nashik arrivals declined to 685 t from 826.3 t, while Delhi arrivals eased to 5,059 t from 5,434.9 t.
The increase in arrivals across five of the seven markets has added to the volume available for trading. The concurrent price declines suggest that demand has not been sufficient to absorb the additional supplies without weakening wholesale price realisations.
Outlook
Onion prices are likely to remain under pressure in the near term if arrivals continue to rise without a corresponding improvement in demand. Double-digit price declines in Nashik, Solapur and Ahilyanagar highlight the extent of the current weakness. Market direction in the coming week will depend on the pace of fresh arrivals and buyers’ ability to absorb available volumes.
A sustained increase in inflows could prolong the downward trend, while a moderation in arrivals or stronger buying could help stabilise prices.
Leave a Reply