Strong Demand from South Asian Countries Boosts India’s Groundnut Exports
Indian groundnut exports have witnessed substantial growth in the current financial year, buoyed by strong demand from major South Asian countries, particularly Indonesia, Vietnam, Philippines, Malaysia, and Thailand. This flow in exports comes after India attained a new export record in the fiscal year 2023, and it is further supported by a decline in groundnut production in Argentina, leading to increased market opportunities for Indian exporters. Additionally, the country’s growing domestic production is supporting this positive trend.
Impressive Performance in FY23 Propels India’s Groundnut Exports
During April and May in the current fiscal year, groundnut shipments from India registered an impressive 54% growth in dollars, amounting to USD 163 Million, compared to the same period last year’s USD 106 Million. In terms of volume, the shipments rose by 46% to reach 0.12 Million Tonnes while it was only 84.11k tonnes in the previous year. The US Department of Agriculture has projected further growth in Indian peanut exports for the marketing year 2022-23, anticipating an increase to 0.85 Million Tonnes.
Based on APEDA data, India’s groundnut exports during FY23 reached a record high of USD 831.6 Million, showing a remarkable growth of 32% compared to the previous fiscal year’s USD 629.27 Million.
Indian Groundnuts Dominate Overseas Markets and Domestic Consumption
India’s groundnut exports have been on a steady upward trajectory, with the fiscal year 2022-23. The substantial demand for Indian groundnuts as table nuts has led to increased exports, and domestic consumption also continues to rise.
B V Mehta, the Executive Director of the Solvent Extractors Association of India, the apex body for edible oils, stated that Indian groundnuts, primarily consumed as table nuts, are highly sought after overseas. The exports of groundnuts have been steadily increasing over the years, alongside domestic consumption. The demand for Indian groundnuts tends to rise when the crop output is low in other exporting countries like Argentina and Senegal, added Mehta.
In a nutshell, Indian groundnut exports have achieved significant growth due to robust demand from South Asian Groundnut countries and the favorable market conditions resulting from a lower crop output in Argentina. This trend indicates a promising outlook for India’s groundnut industry, with increasing overseas markets and a thriving domestic consumption of this popular nut. As India’s groundnut production continues to rise, the nation remains a dominant player in the global groundnut trade.