Posted same question to users@@subversion.sapache.org and got this answer from B Smith-Mannschott - which explains everything. I do have a directory in the path that contains 16000 folders - for every commit. Thank you B Smith-Mannschott for the detailed response. Posting reply here for other peoples' benefit.
Does your repository contain a directory with very many entries? Are
the changes that produce the large commits being made in or below such
a directory?
Let's assume to commit a single change to a single file to your
repository. Let's further assume the file is located here, in your
repository:
/project/trunk/some-really-large-directory/notes/blah.txt
When you commit the change to blah.txt, the new revision will rewrite
the directory nodes between 'blah.txt' and the root of the repository:
/project/trunk/some-really-large-directory/notes,
/project/trunk/some-really-large-directory, /project/trunk, /project,
/. When rewriting a directory node, FSFS always stores the new version
in its entirety. (This is different from the way changes to files are
stored, which are generally as differences to some previous version of
the same file.)
If /project/trunk/some-really-large-directory/ contains, say 10000
files, then each commit to blah.txt will store a full copy of this
directory (with its 10'000 names) in your repository.
I noticed this when I started keeping a personal wiki under version
control a few years ago. It was a flat directory of over 10'000 text
files. I quickly noticed that commits were pretty big. (I've since
switched to git for that task, for this and other reasons.)
see also
http://svn.apache.org/repos/asf/subversion/trunk/notes/subversion-
design.html#server.fs.struct.bubble-up