Peanut: First advance production estimate of record 103.6 lakh tonnes given in Kharif 2024

12-Nov-2024 10:57 AM

Peanut: First advance production estimate of record 103.6 lakh tonnes given in Kharif 2024
The Kharif 2024 peanut production estimate has been set at a record 103.6 lakh tonnes, almost double the production in 2015-16. This significant increase is primarily driven by higher prices for peanuts compared to other oilseeds, leading to a rise in sowing areas across key producing states. The states of Gujarat, Rajasthan, Andhra Pradesh, Uttar Pradesh, and Karnataka saw notable increases in acreage during the season.

Despite the surge in production, market prices are currently lower than the Minimum Support Price (MSP) of Rs.6,738 per quintal. In Rajkot, prices are reported at Rs.6,055 to Rs.6,500 per quintal, with large arrivals of around 75,000 bags on November 11. Similarly, in Mahoba, peanuts are being sold at Rs.4,200 to Rs.4,700 per quintal, again below the MSP.

To address this, government agencies like NAFED (National Agricultural Cooperative Marketing Federation of India), NCCF (National Cooperative Consumers’ Federation), and others are currently procuring peanuts at MSP. The procurement targets set by NAFED include 17.47 lakh tonnes, with the largest shares coming from Gujarat (11.27 lakh tonnes) and Rajasthan (5.03 lakh tonnes). Procurement operations are underway in several states, with the process running through February 2025 in Gujarat and Rajasthan, and in December 2024 for Haryana. However, the procurement schedules for Uttar Pradesh and Andhra Pradesh have not yet been announced.

I Grain India suggests that, given the lower market prices, the government's procurement efforts may increase, providing some price support in the future.