Low acreage not to affect groundnut output

According to a survey done by a trade body, in spite of a drop in acreage, groundnut production this year is likely to be close to that last year.

Owing to good rain and early sowing, the groundnut yield, especially in Gujarat, has increased this year. This will help achieve last year’s kharif production level of 4.1 million tonnes (mt). In Gujarat, there was more cotton sowing, replacing groundnut. So, the crop output was earlier estimated to be lower this year.

According to data provided by the state agriculture department, this kharif season, groundnut sowing in Gujarat, a major producer, dipped to 1.43 million hectares from 1.67 million hectares last year.
 

EXCEEDING EXPECTATIONS State-wise kharif groundnut production 2011-12 (estimated)
State	2010-11	2011-12
Gujarat	2,000	1,900-2,000
Andhra	1,000	700-800
Rajasthan	900	800-900
Others	300	300-400
Total	4,100	4,000-4,100
(’000 tonnes)

Compared to last year, sowing in Andhra Pradesh declined to 1.02 million hectares from 1.36 million hectares. According to the data provided by the Union Agriculture Department, as on September 30, groundnut covered 4.28 million hectares this kharif season, down 690,000 hectares from 4.97 million hectares last year.

Analysts say another reason for the fall in area of the major kharif oilseed crop was delay in rain in major producing states which led to late sowing. “We are surveying the ground situation for the production. This year, sowing has declined but the production may be the same as last year, as yield is good,” said B V Mehta, executive director, Solvent Extractors Association of India .

Last year, the kharif groundnut production stood at 4.1 million tonnes in India. “We have seen in our survey that yield has increased in Gujarat and Rajasthan. In Gujarat, yield will be 15-20 per cent higher. Area has declined, but high yield will help to match groundnut production in the country,” said Kanak Thakkar, vice-president, Indian Oilseed and Produce Export Promotion Council.

Thakkar estimated about 1.9-2 mt production in Gujarat and 900,000 tonnes in Rajasthan and 700,000-800,000 tonnes in Andhra. India’s kharif groundnut production is likely to be around 4.1-4.2 mt in 2011-12, which is same as that last year.

Arrivals of new groundnut crop have started in Gujarat. About 25,000 bags of new crop arrive every day in Gujarat. Groundnut is traded at Rs 700-720 per 20 kg. During the last three months, groundnut price have declined almost Rs 50-70 per 20 kg.

Several oil millers in Gujarat, with whom Business Standard spoke to, expect output to be 1.8-1.9 mt which was around 2.1 mt last year. Suresh Kaneriya, owner of Kaneriya Oil Industries said, “This year production will be 1.9 mt. Sowing has come down but the overall yield may rise due to early sowing.”

Exports of groundnut during April-March, increased to 418,000 tonnes from 340,000 tonnes in 2009-10 recording a growth rate of 23 per cent. In value terms, exports recorded an impressive growth of 47.26 per cent reaching a level of Rs 2,099.77 crore during April-March, from Rs 1,425.93 crore during the previous year.