Overall Peanut Crop Damage

Peanut production in India, particularly in Uttar Pradesh and Gujarat, is facing significant challenges and fluctuations. With damaged crops and varying market prices, exporters must stay informed about the current trends to make strategic decisions. Traders report that 50% of the peanut crop in the Mainpuri area of Uttar Pradesh has been damaged. This substantial loss impacts the overall supply and market trends in the region. In the Jhansi area, the daily inflow of old peanuts ranges from 10,000 to 15,000 bags. Despite low market demand, prices remain stable. It is estimated that stockists and farmers still hold 10% to 15% of the old stock, which is gradually entering the market.

Monsoon Season and Market Trends

July is typically an off-season for peanut income. However, this year, farmers are releasing a significant amount of old stock, indicating a reluctance to wait for new crops, which are expected in two months. The monsoon peanut sowing in Jhansi has increased by 10% to 20% compared to last year, reflecting farmers' optimism. Peanut income in the Mainpuri-Etah area is currently high, with each center receiving 20,000 to 25,000 sacks, totaling 150,000 to 200,000 sacks. Approximately 25% to 30% of summer peanuts are purchased by crushing mills. Around 40% to 50% of the summer peanuts have reached the market, with the remaining stock gradually being released.

Crushing Mills and Market Supply

In Gujarat's Saurashtra region, heavy rains have reduced peanut purchases by crushing mills. This has led to a limited price range for peanuts, with no immediate bullish trend expected. The current supply remains sufficient to meet market demand. In Banaskantha, the summer peanut crop is nearly exhausted, with most of the produce reaching the market. Peanut sowing during the monsoon season has increased by 15% to 20% across Gujarat, including Banaskantha. This increase is attributed to favourable initial rainfall and reasonable market prices. However, the recent heavy rains in Saurashtra have damaged the crops, with further damage possible if the rain continues.

Peanut production in Uttar Pradesh and Gujarat is marked by crop damage, fluctuating prices, and varying market movements. Exporters must closely monitor these trends to effectively understand the market's complexities. While there are challenges, there are also opportunities for strategic decision-making to optimise gains in the peanut export sector.