Peanut Prices Fall on New Arrivals and Weak Demand

20-Sep-2025 02:05 PM

Rajkot. Domestic peanut production is expected to increase significantly during the current Kharif season due to some increase in sowing area and improved crop conditions in both major producing states, Gujarat and Rajasthan.

Sporadic arrivals of the early-sown new crop have begun in some markets, but weak demand from buyers is placing significant pressure on prices, raising concerns among farmers. Prices may soften further in the next 10-15 days as new supplies pick up.

According to trade analysts, the central government has increased the minimum support price (MSP) for peanuts to ₹7,263 per quintal for the 2025-26 marketing season, an increase of ₹480 from the 2024-25 support price of ₹6,783 per quintal.

However, the wholesale market price of peanuts has fallen to a low of ₹4,500-5,000 per quintal. It is believed that not even 10% of the Kharif season peanuts have arrived in the markets, while prices have fallen to their lowest level in nearly 10 years.

If this situation persists, government agencies will be forced to purchase record quantities of peanuts from farmers at the Minimum Support Price (MSP). The situation with soybeans is similar, and record government purchases are also expected.

Critics say the government should strive to formulate a policy that encourages the industrial and commercial sector to purchase peanuts and soybeans from farmers at the Minimum Support Price (MSP) or higher.

Indonesia has imposed a ban on the import of Indian peanuts, but no vigorous efforts are being made to lift it, despite being a significant buyer.

This year, the total peanut production area has reached 4.799 million hectares nationally, which is 34,000 hectares more than last year's 4.765 million hectares.

Its area has jumped from 1.911 million hectares to 2.202 million hectares in Gujarat and from 8.55 million hectares to 9.91 million hectares in Rajasthan.