Groundnut prices have fallen to the lowest level in a decade

20-Sep-2025 10:35 AM

Currently, only about 10% of the kharif groundnut crop has arrived in mandis, and arrivals are expected to increase over the next 10–15 days.

For the 2025–26 crop year, the Minimum Support Price (MSP) for groundnut has been fixed at ₹7,263 per quintal. However, mandi prices are currently hovering between ₹4,500–5,000 per quintal, well below the MSP.

Given the situation, the government is expected to come up with a concrete policy to protect the interests of domestic oilseed farmers, traders, importers, and millers.

The suspension of groundnut imports by Indonesia has also dealt a blow to Indian exporters.

Indonesia halted imports from India effective September 3, following a notification issued on August 27.

Exporters object to the decision, saying:

The issue of aflatoxin contamination was raised three months after consignments landed, with no clarity on how the produce was stored in that time.

Indonesia’s testing standards don’t align with WTO norms — it tests just 1 kg per consignment, while APEDA uses 20 kg for testing.

APEDA has contacted Indonesian authorities but has yet to receive a response. With the new crop arriving next month, a quick resolution is critical to prevent losses for farmers, traders, and exporters.

Groundnut Export Data:

India’s total groundnut exports in FY 2024–25: 7.46 lakh tonnes (worth $795 million)

Indonesia’s share: 2.77 lakh tonnes (worth $280 million) — about one-third of total exports

Sown area this year: 48 lakh hectares, with Gujarat expecting a record 66 lakh tonnes production.