Groundnut Prices Hit Record Lows, Leaving Producers with Heavy Losses

The groundnut market in India continues to struggle, with prices plunging to historic lows and leaving producers facing significant financial setbacks. Weak demand for lower-quality grains at discounted prices has added to the downward pressure.

Current Market Prices

• MP grain (80-90 count): USD 0,77 per kg
• MP grain (50-60 count): USD 0,84 per kg
• Pathapada TJ: USD 0,84–0,96 per kg
• Ka Jaya: USD 0,96–1,08 per kg

In southern markets, 60-65 count groundnuts are limited, comprising just 25% of the total supply. This scarcity has increased the demand for Java groundnuts from Kutch. However, tin-quality groundnuts remain unavailable, and TJ varieties are not being consumed as prices in Uttar Pradesh remain low.

Producers and Traders Face Substantial Losses

Groundnut prices have declined by USD 0,36 per kg since the beginning of the season, marking a significant financial blow to traders and stockists across the country. The situation is particularly dire for producers, who are experiencing one of the worst years in recent history.

Factories currently hold substantial inventories, and the Indian government has stockpiled over 1 million tonnes of groundnuts. These reserves could enter the market at any time, further suppressing prices. The overall groundnut harvest is massive across key growing regions, with Gujarat alone producing 4–4,2 million tonnes. Additionally, farmers still hold 20–20% of the crop. Madhya Pradesh is expected to yield 1 million tonnes, while Rajasthan has harvested 2 million tonnes.

Abundant Supply to Keep Prices Low

New arrivals have started in Andhra Pradesh, though production is slightly lower than last year. However, the overall supply remains sufficient, ensuring availability throughout the year.

Despite the sharp price drop, a surge in consumption remains unlikely. Even if lower prices encourage a 10-20% increase in demand, groundnuts are not consumed in the same way as pulses, limiting potential growth in consumption. Given the vast supply and strong selling pressure, a significant price rebound in the near term appears doubtful.





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