Prices are Expected to Hold Steady Through Diwali Season

In Madhya Pradesh, onion prices are currently steady at around $0,45 to $0,50 per kg. Prices have held stable over the past month, and this trend will likely continue until existing stocks start to deplete. New supplies are anticipated within the next 10 to 15 days, which could help meet demand without creating price surges. At present, Indore holds about 55,000 sacks of onions in stock, while Sanjapur holds around 30,000 sacks. The holiday season has helped keep prices in check. The market after Diwali will depend on how much fresh stock arrives.

How the Monsoon and Regional Markets Affect Onion Prices

The arrival of new onion crops has just started in Alwar, Rajasthan, with prices opening between $0,42 and $0,54 per kg. If these new supplies continue at a steady pace, we may see more onions reaching the market within the next week. Meanwhile, farmers in Madhya Pradesh are already preparing for the next planting cycle, with onion sowing underway and crop planting expected by December. Market fluctuations may start to appear around mid-November as harvests and demand pick up.

In South India, recent heavy rains affected the onion crops, lowering the quality but also boosting demand for existing stocks. The steady demand from both local markets and export activities is supporting prices, with shipments from Madhya Pradesh and Bangladesh currently priced at $0,42–0,45 per kg.

Rajkot Sees Fresh Onion Supplies and Steady Demand

Rajkot is receiving a steady daily supply of 5,000 sacks of new onions, with prices ranging from $0,12 to $0,25 per kg  for lower-quality onions and $0,24 to $4,40 per kg for premium quality. Additionally, around 2,500 sacks of older onions sourced from local markets and Nashik are selling for $0,50 to $0,62 per kg. Supplies of older onions are expected to last until December. Both old and new onions helping to meet market demand. After Diwali, fresh arrivals could increase, possibly lowering prices.

Rajkot is projected to receive between 8,000 and 9,000 sacks daily post-Diwali, which may lead to slight price adjustments. However, significant price drops aren’t anticipated due to uncertainties in supply. Diwali’s eight-day market break could impact prices, depending on stock levels after the holiday. In Saurashtra, heavy rains have damaged crops in flooded areas, though unaffected areas saw about a 20% increase in planting. The new crop season is expected slightly later than usual due to these conditions.

Conclusion

Overall, onion prices in Madhya Pradesh and Rajkot are likely to stay fairly steady, with moderate fluctuations expected after Diwali as new stocks reach markets. Despite challenges from rain and supply delays, stable demand and ongoing export activities are providing support to the market. Future price trends will depend on how much new stock enters the market and the overall condition of upcoming harvests.





Click here to reach our trading platfrom CMBroker