Amid the bumper production of peanuts in Asia, traders have escalated their demand for a ban on groundnut export due to a constant rise in groundnut oil prices.
Scarcity of oil
In Gujarat, most groundnut oil traders have withdrawn from selling their products at low prices, thus creating a scarcity of oil. The decrease in the number of sellers in the market has significantly supported an increase in its prices, which are becoming exorbitantly expensive daily. This trend is leading to inflation that affects not only the poor but also the middle class.
The people are already standing up against the uncontrolled increase in the price of groundnut oil, with an unnerving gain of USD 1.22 in just a week. Prices for a 15 kg can of oil range up to $23.74. If the government doesn’t act now, prices could rise to 43.38
Intervention from the government
A quick intervention from the government into the export of groundnuts can ensure the supply of desi oil, which is famous for its health benefits, and local prices of other nuts remain controlled.
Despite having abundant production of about 4.264 million tonnes of groundnut in Gujarat, experts predict that groundnut is in its golden days currently. No recession is expected because of the lucrative market situation and the export of groundnuts abroad. The traders are apprehensive that the future market will experience no significant decline in the price hike as high foreign demand and poor raw material supply continue to get out of control.
Import/Export Statistics
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