Groundnut production in Gujarat estimated to decline by 60%

SEA pegs groundnut production for 2012-13 at 695,000 tonne against 1.73 million tonne last year

Deficient rainfall in the key groundnut growing areas of Gujarat during the Kharif sowing period seems to have taken its toll on the production of the oilseed for the year 2012-13. The Solvent Extractors Association of India (SEA) has estimated only 695,000 tonne of groundnut production in Gujarat this fiscal as compared to 17,35,000 tonne in 2011-12, which shows a major dip of nearly 60%.

As per the apex body's Gujarat Kharif Groundnut Crop 2012 estimate, the total groundnut acreage reported by the Gujarat government stood at 1.22 million hectares during 2012-13.

However, harvested area was down by nearly  25% at 916,000 hectares mainly due to deficit rainfall. As a result, groundnut production is projected to decline to 695,000 tonne.

 

The average yield per hectare has also reduced to 760 kg per hectare against 1,238 kg per hectare last year.

"Due to the failure of monsoon and most of the districts receiving very less rain, the crop as well as the quality is seriously affected," the apex body said.

The lower production of groundnut is likely to affect the prices of groundnut oil. Groundnut oil prices are already ruling firm at Rs 1,930-1,935 per tin (weighing 15 kg). Also, groundnut prices reached Rs 7,600-7,700 per quintal at the beginning of this month. Although the prices have eased to Rs 7,200-7,300 per quintal at present, traders believe the current price is still higher, especially when new crop is arriving in the market.

The sources in Saurashtra Oil Millers Association (SOMA) said that groundnut prices are unlikely to fall below Rs 1,800 per 15 kg this year. On the contrary it may cross Rs 2,200 per 15 kg by December this year.