Good production of groundnut
23-Nov-2024 08:39 AM
Good production of groundnut
The current situation in the groundnut market reflects a combination of increased production, higher availability of imported oils, and lower demand, which is impacting both market prices and procurement activities.
Key Highlights:
Decline in Prices:
The import of large quantities of oils from abroad has reduced the demand for domestic groundnut, leading to a drop in market prices. Groundnut prices are currently below the Minimum Support Price (MSP), which is impacting the farmers and producers.
Government Purchases:
As of November 21, government agencies have purchased 17,113 tonnes of groundnut to support farmers. Of this, 16,776 tonnes were bought from Gujarat, and 337 tonnes from Rajasthan. However, there has been no purchase from states like Karnataka, Haryana, Andhra Pradesh, or Uttar Pradesh, likely due to market conditions or logistical issues.
Market Price Range:
The prices in key markets are as follows:
Rajkot: Rs.6000–7000 per quintal
Jaipur: Rs.5200–6500 per quintal
Jhansi: Rs.4000–4500 per quintal
Mahoba: Rs.3800–4400 per quintal
Prices have dropped by ₹200–500 per quintal compared to last week, which indicates weakening demand and greater availability of groundnut.
Market Outlook:
The market is flooded with an increased arrival of groundnut, and there seems to be little prospect for a price rebound in the near future. This is compounded by the increased availability of foreign oils, which further reduces the demand for domestic groundnut. Given these factors, a significant price rise is unlikely in the coming weeks.
Conclusion:
While the groundnut production is good this season, the combination of abundant supply, reduced demand due to cheaper imported oils, and prices falling below MSP is creating challenges for producers and affecting market dynamics. The ongoing dullness in the market suggests that unless there is a major change in global oil prices or a sharp reduction in domestic production, prices are likely to remain under pressure.