Groundnut Harvest in Full Swing as Rains Ease Up

The groundnut harvest in Gujarat is moving forward now that the rains have finally stopped. Farmers are busy selling 39-41 count groundnuts, and we can expect pure G-20 peanuts to hit the market around 8 to 10 days after the Java peanuts. Although some regions, like Halbad, experienced a 2-5% drop in yield due to the rains, the overall crop is looking promising. Gujarat is set to produce around 5 million tonnes of groundnuts this year, with an average yield of 1,005 kg hectares.

Government Policies Could Steer Groundnut Prices

Government intervention will play a significant role in shaping groundnut prices this year. Starting from Labh Pancham, the government may purchase up to 20% of the crop if market prices remain low. Three years ago, the government bought 850,000 tonnes, and this year, they are expected to buy around 1 million tonnes. Last year, open market prices were USD 0,12 per kg higher than the government’s procurement price. This year, however, open market prices are USD 0,12 per kg lower, which will likely influence how farmers respond.

Groundnut Prices: What’s the Current Situation?

In the open market, groundnut prices currently range between USD 0,66 and USD 0,69 per kg, while the government procurement price stands at USD 0,82 per kg. This means open market prices are around USD 0,12 lower. Experts predict that prices for 50-60 count Singdana in October may drop further, with estimates hovering around USD 1,08 per kg. Meanwhile, 10% moshvar groundnuts (numbers 29-41) range from USD 0,43 to USD 1,18 per kg. Despite these low prices, experts expect the market to stay steady as farmers likely hold off for strategic sales.

International Demand Is Low, but the Domestic Market Holds Steady

International demand for groundnuts, particularly for grains, has been sluggish, affecting exports. Chinese buyers have shown more interest in Singdana oil, with TJ 80-90 groundnuts priced at USD 1,11 to USD 1,12 per kg. However, no major shipments have been made so far. Domestically, farmers are deciding whether to sell now or wait for better prices closer to Diwali. Their choices will likely hinge on government buying and the expected increase in local demand during the festive season.

Stability with Minor Price Adjustments in Groundnuts

The groundnut market in Gujarat is expected to remain stable, with only small price changes anticipated. This year’s crop is projected at 3.5 million tonnes, up from last year’s 2.4-2.5 million tonnes. Government buying could help stabilize prices ahead of Diwali. Even with a large crop, if prices drop too low, farmers may choose to hold off on selling, helping to keep the market in balance.

Conclusion: Staying Alert in Gujarat’s Groundnut Market

The groundnut market in Gujarat looks stable, but farmers and traders need to stay sharp. Government policies, market prices, and weather conditions will all play a crucial role in the coming months. While international demand remains weak, the domestic market could see a boost as the festive season approaches. A strong crop and smart decision-making should keep the market on solid ground.





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