Peanut Prices Steady Due to Festive Demand Surge: What’s Next for India’s Harvest?
Stability in Peanut Prices At Present
In Uttar Pradesh, peanut stocks are showing signs of stability, with prices holding firm approximately $0,52 to $0,56 per kg. The daily arrival in Jhansi is around 1,500 bags. And despite the festive season, the prices have remained steady over the past fortnight. Traders are optimistic about demand picking up due to the upcoming festivals, especially as Gujarat billi is trading at $0,70 per kg and TJ peanuts at $0,98 per kg.Currently, Jhansi retains about 10% of last year's stock, which is gradually being sold off. The expectation is that monsoon sowing will increase by 25% this year, with the crop's condition being favorable. The arrival of new monsoon peanuts is anticipated around October 1, and if weather conditions remain supportive, a good harvest is expected.
Peanut Stocks Dwindle as Sowing Ramps Up
In Mainpuri, the daily income at all centers reaches one to one and a half lakh bags, with crushing-quality peanuts priced at $0,42 to $0,48 per kg. High-quality grains fetch $0,48 to $0,54 per kg. Unfortunately, recent rains in the region have led to an increase in substandard goods, with more shipments going to Gujarat.Farmers are slowly releasing their held-back stocks, and it's estimated that 25% to 30% of peanuts are still with farmers in Mainpuri. In contrast, prices have hit a low, and further declines are unlikely. The new monsoon crop is expected to bring in good yields, assuming favorable weather.
Gujarat’s Peanut Fields Show Promise for a Strong Harvest
In Gujarat, peanut crops are currently in good condition, and the new harvest is expected to start around September 15. If the weather holds, this year's peanut crop could be excellent, with a 15% increase in sowing compared to last year. Farmers have shifted from soybean and cotton to peanuts, attracted by the favorable climate and rainfall.Despite some concerns about potential rain damage, there are no significant issues reported in the fields across Gujarat. The G-20 quality peanut cultivation has decreased, while BT 32 and 24 varieties have seen substantial growth. With a lower yield for G-20 peanuts, new crops are expected to be harvested soon, and market stability is anticipated.
Government Moves: The Road Ahead for Peanuts
This year, the demand for peanuts has only been about 50% of the usual level, leaving a substantial carryover stock of summer peanuts. Gujarat is the leading state for production, contributing 4 million tonnes to the total harvest, with an additional 1 million tonne coming from other states.The prices of peanut seeds have reached a low, with little room for further decline. Much of the market's future depends on the government's purchasing strategy. If the government steps in to buy at minimum support prices, as it did last year with a record 0.85 million tonnes, it could stabilize prices. However, as of now, the government has not made any preparations for large-scale purchases.