Surge In Peanut Overview

A source has projected a significant increase in peanut sowing in Gujarat, expecting it to rise by 20% this season. This anticipated surge is attributed to favourable weather conditions and shifting agricultural patterns. This article discusses the factors influencing this trend, its potential market impact, and what exporters can expect in the coming months.

Increase in Peanut Sowing

After experiencing good rains, 60 to 70 per cent of peanut sowing has already been completed in Gujarat. This year, peanut cultivation is set to increase by 20%, replacing cotton and soybean plantations. Farmers have been discouraged by low soybean prices over the past three years and the current low prices for cotton. If Gujarat receives two to four inches of rain within the next 15-20 days, followed by similar rainfall rounds, record-breaking peanut production is expected.

Carry Forward Stock and Regional Crops

Despite the anticipated bumper crop, old stocks of peanuts are still substantial. Stockists have held onto quality peanuts due to significant losses incurred this year. It is estimated that there will be a carry-forward stock of three to four lakh bags into the new season. Initial reports in Uttar Pradesh's Mainpuri area suggested a halving of the peanut crop due to rain damage. However, current projections indicate that the crop yield will be similar to last year's.

Saurashtra receives 25 to 30 carts of peanuts daily from Mainpuri, and arrivals are expected to increase once dry goods arrive. In North Gujarat, peanut arrivals have concluded for the season, with new income expected within the next 8-10 days. Despite this, a significant price increase is unlikely due to low export demand. New peanut arrivals will commence at the end of September and peak in October.

The peanut market in Gujarat is poised for a significant increase in sowing and production this year, driven by favourable weather and shifting crop patterns. However, with substantial old stocks and fluctuating prices influenced by export demand and regional production variances.