Pressure on peanut prices due to better sowing in Gujarat
14-Aug-2024 12:24 PM
Rajkot. Due to increase in sowing area in Gujarat, the country's most prominent peanut producing state, and regular unloading of stock by farmers in the markets, the prices of this important oilseed are under pressure.
According to trade analysts, the price of peanuts has remained stable or soft since the arrival of the southwest monsoon in June.
There has been a good increase in the sowing area of peanuts in Gujarat this time. The weather and monsoon conditions are normal, export demand is seen to be weak and its consumption is also decreasing in the domestic sector.
Until the harvesting and preparation of the new crop of the current Kharif season does not start, it seems difficult to see a major change in the current situation.
According to the available data, for the first time after the year 2021, the production area of peanuts in Gujarat has increased to above 18 lakh hectares.
By 9 August 2024, the sowing area of this most important oilseed crop in the state increased to 19 lakh hectares, which is about 17 percent more than the area of 16 lakh hectares in the same period last year.
In fact, this time the farmers of the state laid special emphasis on increasing the sowing area of peanut by reducing the area of cotton.
The peanut crop ripens and becomes ready for harvesting in 100-120 days, while the cotton crop takes 180 days.
At the all-India level, the production area of peanut has also increased by 8.4 percent to 45 lakh hectares. Last year it had reached 42 lakh hectares.
According to trade analysts, in recent times, there has been a huge fluctuation in the prices of peanut seeds in the domestic and global market. Its domestic consumption reached 79 lakh tonnes in the financial year 2021-22, which declined to 52 lakh tonnes in 2023-24.
Its consumption is expected to improve to 61 lakh tonnes in the current financial year 2024-25. The annual export of peanuts is expected to reach 8.50-9.00 lakh tonnes.
Globally, the export business of peanuts is estimated to be between 44 to 49 lakh tonnes.
Along with Gujarat, this time there has been a good increase in the sowing area of peanuts in states like Madhya Pradesh, Rajasthan and Karnataka.