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. Rajasthan – Bikaner, Chittorgarh, Hanumangarh, Jaipur, Jodhpur, Tonk
  3. Andhra Pradesh – Kurnool, Adoni, Kurnool, Chittor, Anantapur
  4. Maharashtra – Dhule, Vashim, Nagpur, Amarawati, Buldhana, Hingoli
  5. Tamil Nadu – Cuddalore, Villupuram, Erode, Salem
  6. Karnataka – Belgaum, Bidar, Dharwad, Haveri

Production trend and Stock position:

  • As per the Ministry of Agriculture fourth advance estimate released on August 11, 2021, groundnut – Kharif production for FY 2020-21 was 85.56 lakh metric tonne (LMT) compared to FY 2019-20 which was 83.89 LMT, up by 1.99 percent
  • As per the Government of Gujarat (Directorate of Agriculture) fourth advance estimate released, groundnut – Kharif production for FY 2020-21 was 45.03 lakh metric tonne (LMT) compared to FY 2019-20 which was 39.86 LMT, down by 11.48 percent
  • According to Ministry of Agriculture, the sowing acreage of groundnut as on August 6, 2021 was 44.40 lakh hectares (lh) down by 5.69 percent compared to 47.08 lh during the corresponding period
  • For FY 2021-22 India exported 49,935.26 MT of groundnut valued at ₹ 482.32 according to Directorate General of Commercial Intelligence and Statistics (DGCIS)
  • Government of India likely to distribute more than 70,000 groundnut mini-kits (high yielding varieties of seeds) free of cost to farmers in order to enhance production and productivity of oilseeds
  • As per the Government of Gujarat (Directorate of Agriculture) as on August 9, 2021, progressive area sowing was at 19 lh as compared to area of Kharif 2020 was 20.46 lh, down by 7.13 percent
  • As per the Government of Rajasthan (Department of Agriculture) as on August 10, 2021, area sowing was at 7.53 lh as compared to the corresponding period that was 7.23 lh, up by 4.09 percent

Monsoon Update

For the country as a whole, cumulative rainfall during this year’s monsoon season till August 4, 2021 is below Long Period Average (LPA) by 2 percent. Details of the rainfall distribution over the four broad geographical regions of India are given below:

Market commentary: Price outlook

  • The Government had increased the MSP of Groundnut by 5.21 percent to ₹ 5,550 per quintal for marketing year (MY) 2021-22 compared to ₹ 5,275 in 2020-21 to ensure remunerative prices to the farmers
  • Prices of Groundnut would trade in a range-bound with a firm bias in immediate/short term on bullish outlook following good overseas demand for Indian seed
  • Overall groundnut prices have been trading above MSP
  • According to various media reports, farmers have been releasing their stock to book profits at the current level

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