Gujarat losing groundnut output to South

Gujarat is losing ground to the southern states in groundnut production, benefiting the state's Bt cotton output.

Saurashtra, the groundnut bowl of the country, is now turning towards cotton. In 2005-06, the state lost almost 2 lakh hectares of groundnut acreage to cotton. This year till date, the groundnut acreage is 12.19 lakh hectares compared with 17 lakh hectares in the last financial year.

On the other hand, among the three southern states (Andhra Pradesh, Karnataka and Tamil Nadu), Andhra Pradesh alone registered 16.15 hectares of area under groundnut cultivation during the last financial year. Industry experts say that there is almost 15 to 20 per cent decrease in groundnut production and acreage during the last five to six years in Gujarat.

Gujarat's groundnut production has decreased by around 2 lakh tonnes in the last two years. Meanwhile, Andhra Pradesh, Karnataka and Tamil Nadu's cumulative groundnut production beat Gujarat's by a large margin. Gujarat produced 19.5 lakh tonnes in 2005-06 and its 2006-07 figures are likely to be about 17.5 lakh tonnes. On the other hand, according to the figures presented in the 28th All India Convention On Rabi Oilseeds, Oil Trade and Industry, new states such as Andhra Pradesh, Karnataka and Tamil Nadu have recorded a cumulative production of 32 lakh tonnes in 2005-06 and are likely to produce 24.6 lakh tonnes in 2006-07. Despite a lesser output for the southern states this year, it is set to beat Gujarat's groundnut production.

"Andhra Pradesh, Karnataka and Tamil Nadu are gaining in groundnut production. Gujarat lost nearly 2 lakh hectares of groundnut area last year to Bt cotton as they got more prices from cotton. However, it looks like a cycle. The farmers will once again return to groundnut next year, when shortage in groundnut will boost the prices," said B V Mehta, executive director, Solvent Extractors' Association of India.

Of the southern states, Andhra Pradesh is emerging as a major competitor to Gujarat in groundnut production. Andhra Pradesh produced 16.5 lakh tonnes in 2005-06 and is likely to produce 10.6 lakh tonnes in 2006-07. Karnataka and Tamil Nadu both occupy the second and the third places respectively, the former likely to produce around 6 lakh tonnes and the latter 8 lakh tonnes.

Gujarat has lost a significant groundnut area to Bt cotton last year. According to the government figures, during 2005-06 the total area under groundnut cultivation was 16 lakh hectares this year and 18 lakh hectares a year before. This year, groundnut has been sown in 12.19 lakh hectares.