Commodity Outlook – Groundnut

Sowing period: May to June
Harvesting period: October
Crop season: Kharif

Sowing period: October to January
Harvesting period: April
Crop season: Rabi

Key growing regions:

  1. Gujarat – Rajkot, Banaskanth, Sabarkantha, Junagarh, Bhavnagar, Amreli
  2. Andhra Pradesh – Kurnool, Adoni, Kurnool, Chittor, Anantapur
  3. Maharashtra – Dhule, Vashim, Nagpur, Amarawati, Buldhana, Hingoli
  4. Tamil Nadu – Cuddalore, Villupuram, Erode, Salem
  5. Karnataka – Belgaum, Bidar, Dharwad, Haveri

Production trend and Stock position:

  • According to Ministry of Agriculture, the sowing acreage of Groundnut as on January 8, 2021 was 4.01 lakh hectares (lh) down by 2.67 percent compared to 4.12 lh during the corresponding period.
  • As per NAFED, as on January 16, 2021 it had procured 3.72 lakh metric tonnes (LMT) of Groundnut from Gujarat at the minimum support price (MSP) and its total procurement across the country stood at 5.33 LMT under the Price Support Scheme (PSS).
  • For FY 2020-21 (April to October) India exported 2,55,918 MT of Groundnut valued at Rs. 2,227 crores whereas it imported 1,036 MT valued at Rs. 7.95 crores according to Directorate General of Commercial Intelligence and Statistics (DGCIS)
  • Currently, Indonesia, Vietnam, Malaysia, Philippines, Thailand and China are the top buyers of India’s Groundnut and Tanzania, Jordan, Indonesia, Russia, UK, Taiwan and UAE are the top sellers of Groundnut to India.

Monsoon Update

For the country as a whole, Seasonal cumulative rainfall during this year’s southwest monsoon season upto December 31, 2020 was above Long Period Average (LPA) by 1 percent. Details of the rainfall distribution over the four broad geographical regions of India are given below:

Market commentary: Price outlook

  • Groundnut prices will be steady to range bound in immediate / short term, because of strong demand from exporters, especially with the recent news reports of crop damage in China due to rains
  • Compared to last year there has been a 15-20 percent uptick in spot market prices of Groundnut
  • The Government had increased the MSP of Groundnut by 3.63 percent to ₹ 5,257 per quintal for marketing year (MY) 2020-21 compared to ₹ 5,090 in 2019-20.

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