In the world of groundnuts, recent times have seen prices plummet to despair, but the future holds the promise of revival. The state of Gujarat India, a prominent groundnut producer, has yielded an estimated crop of 28 to 30 million tonnes, a welcome upturn attributed to September rains. As the prices teeter on the edge, farmers in Gujarat are increasingly leaning toward selling soybeans over groundnuts.
Saurashtra and North Gujarat shops have brimmed with 0.2 to 0.3 million bags of groundnuts. This constant influx and falling prices have left farmers wary, with government-backed MSP purchases set to commence on October 21. It’s a double-edged sword, though; despite the caution among farmers, peanut processing units are grappling with a surplus, struggling to accommodate the influx. Approximately 30% of groundnut purchases in Gujarat are orchestrated by stockists enthusiastic to replicate last year’s favorable returns.
While groundnut prices dip, there is a glimmer of hope in burgeoning export demand from countries like Russia, Taiwan, Morocco, Iran, and Iraq. Despite the shift in tides, there is a consensus that prices won’t further plummet, but a definitive resurgence may not be on the horizon. It’s a delicate balance, waiting for post-Dussehra changes that could sway groundnut prices in unpredictable directions.
Interestingly, the export potential for groundnut oil and kernels seems promising this year. Indian groundnuts have demonstrated quality superiority in the international market, with Sudan witnessing higher prices than India. Vietnam is showing increasing interest in Indian peanuts, and trade conditions appear favorable for India. Despite challenges, Chinese interest remains tepid, and Vietnam’s inquiries about peanuts are rising. The prospects for Indian peanut exports are strong, thanks to lower peanut yields in Argentina, Brazil, and the USA.