Peanut Prices Climb in Karnataka and Andhra Pradesh

Peanut prices have been moving upward in South Karnataka and Andhra Pradesh, with rates increasing by USD 0,05-0,06 per kg in the last few days. In Karnataka, the Chennai delivery price for 80-90 count peanuts has climbed from USD 0,41 per kg to USD 1,06-1,07 per kg. Meanwhile, prices in Andhra Pradesh have strengthened to USD 1,05-1,19 per kg.

This increase is mainly due to strong buying interest from Indonesia, Vietnam, and the Philippines, where peanut production has fallen short of expectations. With supply unable to keep up with demand, prices have gained further support.

Quality Peanuts Becoming Scarce in Gujarat

In Gujarat, the availability of export-grade peanuts has become limited. The price of good-quality corn peanuts, which had previously dropped to USD 1,98-1,99 per kg, has now risen to USD 2,10-2,12 per kg. While some old stock is still available, finding high-quality peanuts has become increasingly difficult.

At the same time, Sudan has started supplying peanuts, but traders are unsure about the quality of these shipments. Meanwhile, Chinese demand remains sluggish, pushing traders to seek other buyers in the international market.

Upcoming Crop in South India

The Tamil Nadu peanut harvest is expected to begin in March-April, with early reports suggesting a good crop. If domestic demand continues at its current pace, peanut prices could see another USD 0,02 per kg increase in the coming weeks. However, if buyers slow down their purchases, prices might face downward pressure again.

Spring peanut planting remains uncertain, as this year’s lower prices have discouraged farmers from expanding cultivation. If fewer farmers opt to plant peanuts, there could be a potential supply shortage in the near future.

Conclusion: Price Stability Depends on Supply and Demand

With strong demand from export markets and a limited supply of high-quality peanuts, prices are expected to stay firm in the near term. The arrival of the Tamil Nadu crop and the decisions of peanut farmers regarding spring planting will play a crucial role in shaping market trends. Buyers and traders should stay alert to these factors to make well-timed purchasing decisions.

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