Stable Market but Further Declines Expected

Onion prices in Rajkot have stabilized after a sharp drop but may decline further due to a bumper harvest. Currently, the price in Rajkot ranges between USD 0,036–0,053 per kg. Prices have already fallen by amounts equivalent to USD 0,004–0,008 per kg from previous highs.

Daily arrivals in the Rajkot market have slowed to 24–25 thousand kattas compared to 45 thousand kattas a few days ago. The market, which earlier operated three days a week, now opens only on alternate days.

Farmers are refraining from bulk sales due to low prices, leading to slower arrivals. However, with an abundant crop expected, prices could fall further by USD 0,003 per kg in the coming weeks.

Bumper Crop Shapes Price Expectations

This season, Saurashtra has recorded an excellent onion crop, with production expected to surpass last year’s levels. Nashik’s Pati Red Onion crop has also started arriving and will continue for the next 1–2 months.

Additionally, yellow onions have been planted successfully in Upleta and Jamnagar talukas. Harvesting is expected to begin after February 15, further boosting market arrivals.

Sluggish Demand and Stocking Challenges

Demand from Gujarat’s tourist sector has reduced, while inter-state trade with regions like Rajasthan, Punjab, and Haryana is slower than usual. The lack of sufficient storage facilities is causing market spillage. Traders expect that as prices drop further, onions will begin moving into storage, which could stabilize the market over time.

Conclusion

Onion prices in Rajkot remain under pressure due to high production levels and slower demand. While current prices have stabilized, the expected arrival of large volumes from Saurashtra and Nashik will likely push prices lower. Farmers and traders may face further challenges as the season progresses, but improved storage practices could help manage the surplus.

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