Current Market Developments:
- Since last fortnight Groundnut prices in Gondal, Rajkot and Gadag spot markets have shown weak trend as consumption demand mainly from the edible oil producing mills remained subdued. Overall, the groundnut market sentiments have remained weak. Traders, stockiest and exporters demand have remained low.
- However, some support at lower levels is seen for groundnut prices as current Kharif acreage at All-India level have declined by 7 percent at 45.48 lakh hectares as compared to 49.07 lakh hectares same period last year.
- Reports of crop damage is coming from key groundnut growing belts of Gujarat and some parts of Rajasthan. Crop acreage in Gujarat has declined to 17.09 lakh hectares as against 19.09 lakh hectares a decline of 10 percent. Similarly, in Andhra Pradesh also the current crop acreage has declined by 13 percent at 5.47 lakh hectare as against 6.27 lakh hectares last year. However, trade sources are of the opinion that overall groundnut production would be around last year level.
- At the International front, Groundnut production in China is estimated to decline by 15-20 percent due to unfavourable crop weather conditions in major groundnut producing belts of Henan and Shandong. Normally, China produces around 120 lakh tonnes of groundnut annually.
- Groundnut oil imports from China are expected to increase in coming days. Already in the month of August 2022 Chinese buyers have brought good amount of groundnut oil from India and now they are offering prices quotes of around 1800-1900 dollars per tonnes.
- China also buys good amount of groundnut oil from Brazil and African countries. Normally, the trade from African countries starts from mid-November-December onwards. So, there are good chances of Chinese demand for groundnut oil to increase.
- Groundnut crop production 2021-22 in India as per the Ministry of Agriculture fourth advance estimates, is likely to decline by 1.3 percent at 101.06 lakh tonnes as against 102.44 lakh tonnes during 2020-21.
Groundnut Price Trend Vs Seasonality at Key Markets
Groundnut Area, Production and Yield: India & Major States
This report is prepared by “agribazaar”. Information and opinions in this report have been taken from publicly available data and from sources believed to be reliable. Neither the report nor any part of the report shall be replicated without the written consent. agribazaar does not make any representations or warranties in relation to the accuracy, completeness and correctness of data or information contained in this report. Use of the data, information or opinions contained in this report is at the sole risk of the recipient of this report, and any such data, information or opinion should be independently verified. agribazaar, its affiliates, their officers, directors and employees shall not be responsible for any loss or damage that may arise to any person from any error in the data, information or opinion contained in this report.