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Commodity for the week: Groundnut
The 2nd Advance Estimates for 2013-14 have pegged production at 9.1million tonnes, the second highest ever since the record of 9.2 million tonnes in 2007-08. The output was almost double the 4.6 million tonnes in 2012-13. Prices have moderated significantly. Moreover, the minimum support price (MSP) for 2013-14 had been set only 8 per cent higher than the previous year, keeping price pressures low in 2013. For the current year, the ministry has not suggested any rise in MSP.
The all-India average wholesale price of packed groundnut oil had peaked at Rs 12,609.56 a quintal in February 2013 and has steadily fallen, dropping to Rs 11,182.34 a quintal in April. While the market conditions have turned around this year, the Agricultural and Processed Food Products Export Development Authority has now relaxed certification norms for some countries, making it easier for small-scale firms to enter the global markets.
