Mixed trend in peanuts due to increase in arrival of new goods

Weekly Review – Peanuts (20-27 December 2024)

The peanut market has shown a mixed trend this week, driven by an increase in the arrival of new produce and an uptick in government procurement activities. Here's a breakdown of key developments:

Production

The export demand for peanut seeds and oil has weakened, largely due to expected better production in China and African countries. In Gujarat, a significant production increase is expected, with projections ranging from 42 to 45 lakh tonnes. This could lead to further pressure on the supply side in the near future.

Arrival

The arrival of peanuts has seen a substantial increase in key markets across major producing states. Currently, the market is receiving around 15-30 thousand bags daily in Rajkot, 20-22 thousand bags in Gondal, and 3-5 thousand bags in Junagadh. Despite this influx, prices remain relatively stable.

Prices

• Jaipur, Rajasthan: Prices rose by Rs. 500 per quintal, reaching Rs. 5000-5800, though still below the Minimum Support Price (MSP) of Rs. 6783.
• Jhansi, Uttar Pradesh: Prices stayed stable at Rs. 4000-4400 per quintal, despite average daily arrivals of 25-30 thousand bags.
• Mahoba, Uttar Pradesh: Prices fell by Rs. 50, reaching Rs. 3800-4350 per quintal. In contrast, Mauranipur saw a Rs. 100 increase in prices.
• Solapur, Maharashtra: Prices declined by Rs. 200.

Grains

The price of shelled groundnuts generally decreased by Rs. 200-400 per quintal. However, certain regions saw a rise of Rs. 100-200 per quintal.

Peanut Oil

• Loose Peanut Oil: Prices rose by Rs. 20-40 per 10 kg.
• Branded Peanut Oil: Increased by Rs. 50-60 per 10 kg.
• Filtered Oil: Remained stable or showed slight increases.

Outlook

If the government does not accelerate its purchasing pace amid the rising arrival pressure, farmers could face increasing challenges, especially considering the downward trend in export demand.