Uttar Pradesh Groundnut Crop Estimated at 3 Million Tonnes
Groundnut Production and Price Stability in Uttar Pradesh
In Jhansi Panchak, a key groundnut market in Uttar Pradesh, arrivals are averaging 30,000 to 35,000 sacks daily. Prices in the local market range from $0,48 to $0,53 per kg. Over the past 15-20 days, prices for groundnut kernels have remained stable, with only a minor decline of $0,02 to $0,03 per kg, keeping the rates between $0,87 and $0,88 per kg.Aman Aggarwal, a local market observer, noted that the current ivory market shows no signs of further price drops, providing some stability for growers.
Government Procurement and Local Market Support
Government procurement of groundnuts at the minimum support price (MSP) has been consistent, with small quantities being purchased daily at procurement centers. Local consumption has also been steady, supporting prices.In Jhansi, factories processing hangpod peanuts have significantly increased operations. Previously, 200 to 400 factories were active, but now the number has surged to 700 to 1,300, boosting local demand further.
Production Estimates and Export Challenges
The groundnut crop in Uttar Pradesh is estimated at 2.50 to 3 million tonnes this season. While planting was robust, harvesting has lagged, resulting in lower-than-expected production. Nearly 40-50% of the current crop has already been transported outside the state.Despite the stable local market, demand from Gujarat, a key buyer, remains low. Additionally, export activity has been weak, with minimal interest from manufacturers.
Market Trends for December and Early 2024
Demand for raw groundnuts remains steady, with no significant uptick expected in December. However, traders anticipate a potential rise in demand for ivory groundnuts by January or February, depending on market needs.Current prices for groundnuts in the mandi are holding firm at $0,48 per kg, with no indications of further declines. Experts believe prices may increase slightly from this level, although a major surge is unlikely in the near term.
Conclusion
The groundnut market in Uttar Pradesh remains stable, supported by steady local demand and government procurement at MSP. While production has been affected, the market is expected to hold steady, with possible slight improvements in early 2024 as demand adjusts.Click here to reach our trading platfrom CMBroker
