Better production to boost groundnut exports to 700,000 tonnes this year

(tonnes) 208,476 Association of India (SEA), the country’s kharif groundnut production in 2016-17 will be 5.48 million tonnes (mt) against 3.23 mt in 2015-16. Gujarat, which is the highest producing state of groundnut in India, will have a 97 per cent rise in groundnut production to 2.94 mt from 1.48 mt now.

Govind Patel, convenor of SEA’s oilseed crop estimate committee, said: “This monsoon was good and this has increased the yield of groundnut crop from 877 kg to 1,166 kg per hectare. Domestic prices already reached below minimum support price (MSP) and it may decrease further with arrival of new crops.”

The central government has fixed ~4,120 a quintal MSP of groundnut for 2016-17, while the commodity is quoting ~3,000-4,000 a quintal in Gujarat. Daily arrival also increased from 25,000 bags to 85,000 bags during October so far. According to traders, it will increase to 125,000 a day in November.