Challenges in Peanut Exports

India’s peanut exports are underperforming compared to last year. While international opportunities exist, low global demand has restricted growth. Sudan, a key competitor, is set to bring its crop to market in January, but its higher prices may give Indian peanuts an advantage. However, delays in Sudanese shipments have added uncertainty for global buyers.

Meanwhile, China’s demand for peanuts remains subdued. In contrast, countries like Indonesia and the Philippines continue to source affordable vacuum-packed peanuts from Uttar Pradesh, which offers better pricing than Gujarat.

Rays of Hope for Peanut Prices

Peanut prices in India remain steady at their current low levels, with no immediate signs of a decline. Improved crop conditions in Pathawada are raising hopes for better rates, particularly for premium-grade peanuts. Traders are now looking forward to the anticipated surge in demand during Ramadan to boost market activity.

Lower Income of Farmers in Peanut Trade

Farmers in Madhya Pradesh and Uttar Pradesh are facing lower incomes, which has made peanuts from these regions more competitive. Many traders are opting for cheaper grains from these states, especially for exports to Indonesia. The price gap between 80-90 count and 50-60 count peanuts has widened to USD 0.12 per kg, driving demand toward the lower-priced variety.

Strong harvests in Madhya Pradesh and Chhattisgarh have further diverted demand away from higher-priced alternatives. Traders believe the current prices are likely at their lowest and could start increasing gradually as Ramadan approaches.

Peanut Processing Units Face Pressure

Domestic peanut processing units are struggling with profitability. Many factories have shut down temporarily due to challenges in maintaining margins. Peanuts from Madhya Pradesh and Uttar Pradesh, being cheaper, have outperformed Gujarat’s higher-priced supply, shifting trade flows significantly.

Anticipated Market Recovery

As Ramadan nears, traders expect demand to increase, providing momentum to the market. India’s competitive pricing compared to Sudan could support export growth, while domestic festival demand may also lift prices. A gradual recovery in peanut rates seems likely in the coming weeks.





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