The groundnut market takes an unexpected rollercoaster ride. The much-anticipated bumper crop in Uttar Pradesh and Bengal has shaken the market to its core, causing Jawa-TJ groundnut seed prices to hit rock bottom. Market Analysts are sounding the alarm, predicting a substantial decline in prices as the regions prepare for an avalanche of crops. Brace yourselves for the impact, set to strike between June 15-20, when the pressure of new arrivals reaches its zenith.
Gujarat, another heavyweight in groundnut production, is poised to yield a summer crop of 90,000 to one lakh tonnes. Buckle up for the ride as June 15 approaches, bringing a surge of fresh arrivals. Keep a watchful eye on Gujarat’s Java variety, as it follows suit with a downward spiral for the 50-60 count category, mirroring the market’s response to the overwhelming influx from UP and Bengal.
On the other hand, UP is preparing to deliver an astounding one-and-a-half to double the usual groundnut crop. Prices are on the precipice, ready to plummet from $0,66 to $0,69 per kg. The surge in sowing can be attributed to attractive prices in recent years, enticing farmers to sow their seeds. If the weather gods continue to smile until June 10, brace yourselves for a doubling crop and an even greater onslaught of arrivals from centres like Madhavganj, Etah, Jalalabad Mainpuri, and Allahganj in UP. Mainpuri alone is set to witness a daily flood of 90,000 to one lakh bags, while Madhavganj expects a substantial 20 to 30 thousand bags.
The robust groundnut harvest in Uttar Pradesh and Bengal has created seismic waves in the market, resulting in a rapid price decline. Farmers rejoice in their bountiful yields, but the market bears the brunt of the groundnut shakeup.