Groundnut exports jump 50% in April-July

Demand from West Asian countries responsible for spurt in export

Groundnut export has seen significant rise during April-July 2014 owing to increased demand from West Asian countries. Export of groundnut during these four months rose by about 50 per cent, according to data provided by the Indian Oilseeds and Produce Export Promotion Council (IOPEPC), and the market still remains good, industry sources say.

IOPEPC chairman Kishor Tanna said, "India has exported about 179,000 tonnes of groundnut during April-July 2014, which is higher by 60,000 tonnes or 50 percent from last year’s 119,000 tonnes in the corresponding period."

Tanna added, "There was good demand from West Asian countries before Ramzan. Consequently, we have been able to export close to 180,000 tonnes of groundnut in just four months of this financial year. Overall demand still remains good and domestic demand is likely to pick up in coming days with festivals approaching."

Total export of groundnut  from India, however, reduced marginally in 2013-14. Groundnut export, according to IOPEPC data, in 2013-14, stood at 511,662 tonnes as against 535,635 tonnes in 2012-13, down by 23,973 tonnes.

Commenting on the rise in exports, a leading Rajkot-based groundnut exporter and trader said, "Demand is still good at this point of time mainly from China, Malaysia, Middle East and Indonesia. Domestic buying is also good. We are expecting the demand in domestic market to remain stable with various festivals coming."

High demand also ramped up prices of groundnut to a record high this time.

The price of best quality groundnut for export is currently ruling at Rs  90,000 per tonne, which rose by almost Rs  30,000 per tonne, over the past three months.

At domestic front, it has gained from Rs  700 per 20 kg four to five months back to Rs  950 per 20 kg in July-August 2014 in local markets.

Tanna says, "The way export has begun, India's total groundnut export may touch about 600,000 tonnes in 2014-15. However, it all depends on kharif production."