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 29, 2021 was 4.76 lakh hectares (lh) down by 1.24 percent compared to 4.82 lh during the corresponding period
  • As per the Ministry of Agriculture second advance estimate released on February 24, 2021, Groundnut production for FY 2020-21 was 85.90 lakh metric tonne (LMT) compared to FY 2019-20 which was 83.89 LMT, up by 2.40 percent
  • For FY 2020-21 (April to November) India exported 3.69 LMT of Groundnut valued at Rs. 3,113.06 crores whereas it imported 1,036.15 MT valued at Rs. 7.95 crores according to Directorate General of Commercial Intelligence and Statistics (DGCIS)

Table 1: NAFED has procured 2.84 LMT of Groundnut seed under Price Support Scheme (PSS) by February 12, 2021 which was valued at Rs. 1,502 crores

Monsoon Update

For the country as a whole, cumulative rainfall during this year’s pre-monsoon season till March 10, 2021 is below Long Period Average (LPA) by 58 percent. Details of the rainfall distribution over the four broad geographical regions of India are given below:

Table 2: Pre-monsoon Rainfall Scenario from 1 to 10 March 2021

Source: India Meteorological Department (IMD)

Chart 1: Mandi Arrivals of Groundnut – Kharif (in MT)

Market commentary: Price outlook

  • Groundnut prices have a bullish outlook in immediate / short term due to good overseas demand, especially from China
  • Since January 2021 there has been an upward trend in the Groundnut prices of +2 percent movement
  • 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 to ensure remunerative prices to the farmers

More Articles for You

Healthy Tips for Healthy Soybean

Soybean is a short-day plant requiring hot weather for optimum production. They are adapted to grow in many soils (pH …

Weekly Soybean Report

As depicted in the adjacent chart Soybean prices in major trading centers have cooled off on higher availability against subdued …

Weekly Maize Report

Current Market Developments: During this week, Maize prices in most of the spot markets have declined tracking subdued demand in …

Go-to Guide for Good Groundnuts

Groundnuts are a popular food source worldwide, consumed either as peanut butter or groundnut oil or simply as a confectionary …

Weekly Wheat Report

Key Market Developments: During the week, Wheat prices in most of the spot markets of Delhi, Uttar Pradesh, Madhya Pradesh, …

Vertical Farming in India

Agriculture in India is often affected by soil degradation, desertification, and extreme weather conditions such as floods and droughts. As …

WhatsApp Connect With Us