Indian Peanut Market Stabilizes as Prices Hit Lowest Levels

The peanuts market has reached a point where significant further declines are unlikely, according to industry experts. Prices are at their lowest, and market activity remains limited due to an economic slowdown and weak export demand.

Current free-on-board (FOB) prices for peanuts are:

• USD 0,93–0,94 per kg for Bold peanuts
• USD 1,02–1,04 per kg for Pathwara peanuts
• USD 0,95–0,97 per kg for Poop-MP peanuts

Despite these competitive prices, trading remains slow as buyers hesitate to purchase beyond immediate requirements. This cautious behavior reflects ongoing uncertainty in global demand.

Lunar New Year to Delay Market Recovery

The Lunar New Year holidays in China and Vietnam have temporarily subdued the market. However, traders anticipate renewed interest from Asian countries after February 10 if prices remain stable at current levels. This potential recovery could provide a much-needed boost to the market.

Supply Pressure Strains Operations

Gujarat, a key peanut-producing state, has already supplied approximately 3.5 million tonnes of groundnuts to the market. Farmers are still holding an estimated 500,000–700,000 tonnes of unsold stock.

Falling prices have forced 80–90% of peanut mills in Saurashtra to shut down operations. Mills are struggling with losses, whether they use existing stocks or purchase fresh peanuts. This situation has also led to a shortage of raw materials for peanut oil production, further tightening supply chains.

Peanut Oil and Export Challenges

Peanut oil suppliers are quoting prices of USD 1,52 per kg, while buyers are offering USD 1,49–1,50 per kg, highlighting the challenges of limited refinery operations.

Since October, India has exported 60,000–70,000 tonnes of peanuts. While export demand remains sluggish, stable prices could encourage buyers to re-enter the market in the coming weeks.

Conclusion: Who Will Be The Market Mover

With prices already at their lowest levels, the peanuts market is unlikely to see significant further declines. Although short-term demand remains weak, a rebound from Asian markets after the Lunar New Year could provide relief. Traders and processors should proceed cautiously, balancing supply challenges and the potential for a gradual recovery in demand.





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