Current Scenario
Peanuts grow mainly in five states accounting for nearly 90 percent of the total crop in India, i.e., Andhra Pradesh, Gujarat, Tamil Nadu, Karnataka, and Maharashtra. Two of these states (Andhra Pradesh and Gujarat) account for more than half of the cultivated area.
In Gondal city in Gujarat, there is an excellent supply of peanuts with high demand. Crop damage reports are coming from Karnataka; therefore, South domestic demand is also being fulfilled by Gujarat origin, due to which the current scenario is optimistic. Also, there is a rising demand for seeds for the new farming season as the farmers are willing to sow new crops. On Monday, Rajkot had high stocks of peanuts available, and the selling was weak.
Factors affecting the market
The government purchasing of peanuts is almost complete, and therefore there will be less purchases from the government in the market in the near future. Other major factors affecting the market are:
- Costs of competing crops and input costs
- Global demand trends and continued impacts from COVID
- Supply chain disruptions, increased transportation costs
- 2022 peanut production in key producing countries (China, India, and Argentina)
Prediction
Due to high stock availability, the market might witness a bearish trend. According to traders, demand will be less, leading the market towards a downtrend. It is also possible that the market behaviour will be slippery considering the above factor.
Bottomline
India’s has much scope for Groundnuts Export as per the experts. However, groundnuts currently are much higher than demand in the domestic market. Therefore, there is a need to promote the export of groundnuts and their products to sustain the present production trend. In 2021, India estimated more than nine million metric tons of groundnut production.
Demand from the International market is nill as of now. Buyers are not active. There are reports that China, Russia, the Philippines, Indonesia, and European countries are not buying. Lockdowns in many areas and transportation costs are a significant concern, as buyers prefer a flow of containers.
Arrivals:
Total arrivals in the mandis of the week are 18.031,53 tonnes, and the maximum was from Gujarat with 8.632,65 tonnes.
Prices
- Bold 40-50 stands at $1,22 per KG
- Java 50-60 stands at $1,42 per KG