Strong Demand and Limited Supply Drive Up Groundnut Prices

09-Jan-2026 08:29 PM

Rajkot: The Central Ministry of Agriculture, in its first advance estimate, has projected that groundnut production in the 2025-26 Kharif season will increase to 110.90 lakh tonnes, which is 6.80 lakh tonnes more than the 104.10 lakh tonnes produced in the 2024-25 Kharif season.

According to the Ministry of Agriculture, a total of 119.40 lakh tonnes of groundnuts were produced in the country during the entire 2024-25 season (Kharif + Rabi + Zaid).

According to trade analysts, despite the suspension of Indian groundnut imports by Indonesia, the average domestic market price has risen to ₹68,000 per tonne, which is significantly higher than the average price of ₹51,444 per tonne during the same period last year,

but considerably lower than the Minimum Support Price (MSP) of ₹72,630 per tonne. In Gujarat, government agencies are purchasing large quantities of groundnuts from farmers at the Minimum Support Price.

According to analysts, due to strong demand and limited supply, the domestic market price of groundnuts has increased by approximately 30 percent in recent days, and the market remains bullish.

According to available data, during the financial year 2024-25, India exported 7.46 lakh tonnes of groundnuts worth $795 million, with nearly one-third of the shipments going to Indonesia, where 2.77 lakh tonnes of groundnuts worth $280 million were exported. In the first half of the current financial year (2025-26), i.e., April-September 2025,

India exported 3.79 lakh tonnes of groundnuts, generating revenue of $381.27 million. In comparison, peanut shipments from April to December 2024 amounted to 354,000 tonnes, generating revenue of $41.258 million. India exports peanuts to several countries around the world.