Commodity Insights Groundnut

agribazaar January 30, 2024

Current Market Developments:
⮚ The Groundnut price trend chart indicates that prices have recently declined in most of the domestic markets. Lack consistent buying demand is hampering the prices particularly from the Groundnut oil segment. Both the domestic buying demand as well as the export demand has declined this year resulting in good quantity of surplus stocks in domestic markets.

⮚ Farmers have more than sufficient stocks available with them and the recent uncertainty in the domestic markets have pushed the farmers with higher supplies in domestic markets resulting in weakness in prices.

⮚ So, far this year the groundnut export demand has remained low. Normally, the demand for Ramazan picks up during January-February two months earlier and now the trade sources are not expecting any significant increase in demand this year. As per the APEDA, Groundnut exports during April-November 2023-24 have remained weak at 3.84 lakh tonnes. Major export destinations were, Indonesia (1.16 lakh tonnes), Vietnam (90 thousand tonnes), Philippines (36 thousand tonnes), Malaysia (33 thousand tonnes), Thailand (23 thousand tonnes), UAE (15 thousand tonnes). During the last financial year April-March 2022-23, the total Groundnut exports stood at 6.68 lakh tonnes.

⮚ Similarly, Groundnut Meal exports have also remained low and as per the Solvent Extractors association of India, Groundnut meal exports during April-December 2023 have declined by 33 percent at 13,808 metric tonnes as compared to 20,698 metric tonnes during April-December 2022. Myanmar, Taiwan, and Vietnam remained major buyers. During the last financial year 2022-23 groundnut meal exports stood at 29,873 metric tonnes.

⮚ Gujrat one of the major Groundnut producing state in its second advance estimates for 2023-24 crops has lowered its Groundnut production by 3 percent at 43.96 lakh tonnes as compared 45.31 lakh tonnes during 2022-23 season. The overall Kharif Groundnut crop production in the country during 2023-24 is also estimated to decline by 9 percent at 78.29 lakh tonnes as compared to 85.62 lakh hectares in 2022-23 season. The Minimum Support Price (MSP) for groundnut has been increased by Rs. 527 to Rs. 6377 per quintal for marketing season 2023- 24 from Rs. 5850 per quintal in 2022-23.