Author(s): Monika Devi, Joginder and Dalip Kumar Bishnoi

Abstract: Onions play a dual role, serving as both a vital staple in household consumption and a highly sensitive commodity in the financial market due to its susceptibility to rapid price fluctuations (Sinha et al., 2018). In the year 2020-21, India stood as the second-largest onion producer globally, yielding an impressive 26.641 million tonnes from a cultivation area spanning 1.624 million hectares (Mha), ranking just behind China. The study focused on four key Haryana markets (Kurukshetra, Yamunanagar, Panipat, Gurugram) and two national markets (Delhi and Nasik) to understand the onion price transmission dynamics. During the research period, Nasik's market recorded the lowest mean onion prices at Rs. 13.95 per kilogram. The markets displayed significant price correlation, indicating a substantial level of co-movement and integration. The study also examined seasonal variations, revealing that onion prices exhibited notable differences from the average, peaking from July to January and remaining below average from February to June. Analyses of the onion price series for selected markets confirmed their co-integration, while pairwise Granger Causality Tests demonstrated that the prices of Nasik and Delhi market onions had a significant influence on onion prices in all other selected markets.

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