Weekly Review-Peanuts

16-Nov-2024 07:59 PM

Pressure on peanut prices due to increasing arrival in the markets


Weekly Review – Peanuts (November 8-14, 2024)

Price Pressure from Increased Arrivals

  • Gujarat & Uttar Pradesh:
    • Gondal (Gujarat): Arrival increased to 90,000 bags (up from 85,000 last week), leading to a price drop of Rs 150 to Rs 5000-6300 per quintal.
    • Rajkot (Gujarat): Arrival reached 60,000 bags with prices holding steady at Rs 6000-7000 per quintal.
    • Bundelkhand (Uttar Pradesh): Significant arrivals in Jhansi (35-45 thousand bags) and Mauranipur (20-30 thousand bags) contributed to a fall of Rs 100-200 in prices. In Jhansi, prices decreased to Rs 3800-4400 per quintal, and in Mauranipur, they dropped to Rs 3800-4500 per quintal.
  • Other Regions:
    • Bikaner (Rajasthan): Arrival pressure led to a Rs 300 price drop to Rs 5000 per quintal.
    • Jaipur (Rajasthan): Prices fell by Rs 500.
    • Solapur (Maharashtra): Prices rose by Rs 100 to Rs 6600 per quintal.

Government Support and Price Trends

  • The Central Government has increased the Minimum Support Price (MSP) of peanuts for the 2024-25 season by 6.4% to Rs 6783 per quintal, but procurement has not gained significant momentum yet, contributing to price fluctuations in the market.

Peanut Seed Prices

  • Peanut Seed Price Decline:
    • Due to weak demand from millers and traders, seed prices declined sharply in Bikaner:
      • 40/50 count: Down by Rs 1400 per quintal.
      • 50/60 count: Down by Rs 1200 per quintal.
      • 60/70 count: Down by Rs 900 per quintal.
  • Peanut Oil Prices:
    • In contrast to seed prices, peanut oil prices increased by Rs 30-40 per 10 kg, indicating some upward pressure in the oil market.

Summary

The peanut market is under pressure due to high arrivals across key growing regions such as Gujarat, Rajasthan, Uttar Pradesh, and Maharashtra. While the MSP has been raised, market prices are softening as supply outpaces government procurement. Additionally, peanut seed prices are dropping due to weak demand, while peanut oil is seeing a modest price increase.

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