The domestic demand for peanuts has increased in India, moving the price upward.
Reasons for the price increase
The Russia Ukraine war is the primary factor in making the market bullish for peanuts.
Ninety percent of the sunflower oil consumed in India gets imported from multiple origins. Fifty-eight per cent of the total import is from Ukraine and Russia.
The war has already put a halt on the import from Russia and Ukraine. The other countries exporting to India are facing delays, and the freight charges have gone up, moving the sunflower oil prices higher. As a result, Indian consumers are now shifting their consumption to peanut oil and rice bran oil.
The Solvent Extractors Association weighs into other options of importing the cooking oil from other countries to keep the price stable. However, according to market experts, the market will stay bullish.
The other factor causing the price hike is the Indian rupee plummeting against the dollar due to the war.
There is also a rise in demand for Indian peanuts from China.
With all these factors in place, the Indian peanut market is likely to stay bullish in the coming days.
Prices
Bold 40-50
| Date | Price |
| March 10 | $1,25 per kg FOB |
| March 7 | $1,24 per kg FOB |
| March 1 | $1,23 per kg FOB |
per cent