Better production to boost groundnut exports to 700,000 tonnes this year

Groundnut exports from India might cross 700,000 tonnes during 2016-17 as the crop size is expected to increase 70 per cent on the back of good monsoons. In 2015-16, India had exported 537,888 tonnes of groundnut.

“Better groundnut production has already put the prices in domestic markets under pressure and this will be beneficial for the exports from India. India’s groundnut production might increase 25-30 per cent in 2016-17 to 700,000 tonnes,” said Vikram Duvani, director of Smit International.  

According to the data of Agricultural and Processed Food Products Export Development Authority, groundnut exports between April and August 2016 increased 15 per cent to 207,476 tonnes against 181,507 tonnes in the corresponding period of 2015.

According to Solvent Extractors’ Association of India (SEA), the country’s kharif groundnut production in 2016-17 will be 5.48 million tonnes (mt) against 3.23 mt in 2015-16. Gujarat, which is the highest producing state of groundnut in India, will have a 97 per cent rise in groundnut production to 2.94 mt from 1.48 mt now.

Govind Patel, convenor of SEA’s oilseed crop estimate committee, said: “This monsoon was good and this has increased the yield of groundnut crop from 877 kg to 1,166 kg per hectare. Domestic prices already reached below minimum support price (MSP) and it may decrease further with arrival of new crops.”

The central government has fixed Rs 4,120 a quintal MSP of groundnut for 2016-17, while the commodity is quoting Rs 3,000-4,000 a quintal in Gujarat. Daily arrival also increased from 25,000 bags to 85,000 bags during October so far. According to traders, it will increase to 125,000 a day in November.