Groundnut Production Expected to Surpass 10 Million Tonnes

India’s groundnut production is estimated to reach 10.36 million tonnes in the 2024-25 Kharif marketing season, marking a 19.6% increase from the 8.66 million tonnes produced in 2023-24. This growth reflects an expansion in sowing area, which rose from 4.38 million hectares last year to 4.79 million hectares. Gujarat, Rajasthan, and Karnataka, the top producing states, have seen significant improvements in acreage, with Gujarat leading in both area and anticipated output.

Government Intervention as Prices Fall Below MSP

Despite record production, groundnut prices in the market have dipped below the government’s minimum support price (MSP) of $0.81 per kg. To protect farmers from losses, the government has launched a procurement drive targeting 1.74 million tonnes of groundnuts nationwide. Of this, 1.13 million tonnes are set to be procured in Gujarat, and 0.503 million tonnes in Rajasthan. The procurement period spans October 2024 to February 2025 in Gujarat and Rajasthan, with Haryana concluding its purchases by December 2024. Timelines for other states, including Uttar Pradesh and Andhra Pradesh, are yet to be announced.

Favorable Growing Conditions Boost Output of Groundnut

The increase in production is attributed to favorable weather conditions, improved seed varieties, and sufficient rainfall during the growing season. Farmers in Gujarat have reported excellent yields, reinforcing the state’s position as a leader in groundnut production. Official data highlights this year’s expanded acreage as a major contributor to the bumper crop.

Challenges Persist Despite High Production

While higher production is a positive development, the challenge of falling prices remains. Farmers are optimistic that government procurement at MSP will offset potential losses and ensure a fair return for their produce. Stakeholders are urging the government to expedite procurement processes to stabilize the market.





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