Groundnut

According to Desai groundnut oil prices are seeing an upward trend because groundnut is in short supply for crushing

The total area covered under all crops was more than their normal area, which is the average of the last five years

Oilseeds like groundnut and soyabean and other crops led by cotton are largely sown in Kutch and Saurashtra regions of Gujarat

Traders attribute the price upsurge to unavailability of stock with farmers and stockists

Excess production of groundnut in Gujarat has led to a steep fall in prices affecting farmers. Moreover, with bulk of the produce being procured by government under minimum support price (MSP), oil mills are facing shortage of raw material. The Gujarat government has so far procured close to 680,000 tonnes of groundnut at Rs 4500 per quintal. However, there has been an apparent cap on procurement from each farmer. Moreover, the government is expected to continue procurement, albeit in a staggered manner.Yet, farmers are reluctant to sell the groundnut to oil mills, leading to hiccups in raw material sourcing for the mills. According to industry sources, farmers are holding on to their produce in the hope of being procured at a higher rate by government."A bumper crop in Gujarat has led to fall in groundnut prices to below MSP at Rs 4000 per quintal. However, the government is procuring limited quantity at Rs 4500/ kg MSP. Hence, farmers are reluctant to sell at market prices lower ...

Amidst subdued overseas markets especially South East Asian countries like Vietnam, Indian groundnut exporters are turning to domestic retail businesses such as peanut products including peanut butter and confectioneries. Players like Agrocrops Exim Limited, among others are looking to enhance exports even as they diversify into domestic retail."Value addition in groundnut is happening in small way but it is gradually increasing as demand in domestic as well as international market is growing. Some leading exporters have shown interest for it. As it is untapped area, there are huge potential for value added peanut market," said an official of Agricultural and Processed Food Products Export Development Authority (APEDA).According to APEDA, with export of groundnut some of major exporters may enter in this business in near future.Tamil Nadu-based Agrocrops Exim Limited, a leading groundnut exporters is currently expanding its processing capacity with setting up new processing units ...

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