Promising Outlook for Peanut Crop in Gujarat Despite Demand Challenges
Favorable Weather Boosts Peanut Crop Prospects in Gujarat
The peanut crop in Gujarat shows strong growth, with traders expecting a 20% increase in cultivation compared to last year. Although official records suggest less growth, on-the-ground assessments indicate that the crop could reach 35 to 40 million tonnes if the weather remains favorable. Currently, the crop urgently needs rain, which is crucial for ensuring a good harvest. But, for the past three days Gujarat is experiencing heavy rains all over the state. The true extent of the crop’s success will be clearer by the end of September.New Varieties Take Center Stage in Peanut Farming
This season, peanut farmers in Gujarat are planting more high-yield, early-maturing varieties like BT 32, 39, and Girnar 4, instead of the traditional G-20, G-10, and TJ varieties. These changes aim to improve yield and ensure a robust harvest. However, the success of these efforts depends on the weather in the coming weeks.Weak Demand Puts Pressure on Peanut Prices
Despite the promising crop outlook, the peanut market faces challenges due to weak demand. Demand for peanuts, both commercially and for export, is currently low. Prices in Maharashtra stand at $1,12 to $1,13 per kg for the 40-50 count, with export prices hovering around the same range. Traders like Shailesh Nathwani predict prices could drop by $0,024 to $0,036 per kg if demand doesn’t pick up. This decline contrasts sharply with stronger demand earlier in the season.Significant Carryover Stock Adds to Market Pressure
As Gujarat prepares for the regular arrival of new peanuts after September 20, there is considerable carryover stock from the previous season. Estimates suggest that Gujarat alone has around 0.30 million tonnes of carryover stock, with the national figure, including states like Uttar Pradesh, Madhya Pradesh, and Rajasthan, reaching 0.50 to 0.80 million tonnes. This level of carryover stock, not seen in years, adds to the downward pressure on prices.Conclusion
While the peanut crop in Gujarat is set for a good harvest, weak demand and significant carryover stock may challenge the market. Traders remain optimistic about the yield but cautious about the price outlook, as a potential decline looms if demand doesn’t improve.