Decline in Summer Peanut Cultivation in Banaskantha District

India’s summer peanut cultivation in Banaskantha district has seen a notable decrease this year. Government actions, especially stock sales, are significantly affecting market prices. Currently, authorities hold about 300–400 tonnes of peanuts, predominantly the 37-count variety (around 80% of total stocks), with the remaining 20% comprising the 20-count variety.

Reduced Crop and Limited Stocks

Peanut production decline in Banaskantha considerably, resulting in limited availability at major markets. Stocks remain scarce, putting pressure on supply and slightly increasing prices. Consequently, gram flour prices have risen by USD 0,04–0,05 per kg due to the reduced peanut availability.

Limited new crop arrivals in southern India have boosted peanut demand in Gujarat. Stocks at important market centers are minimal, maintaining steady demand pressure. Prices in local markets continue to hold firm due to reduced supply.

Government Influence on Market Prices

The peanut market’s future depends heavily on government decisions regarding stock sales. If authorities avoid selling peanuts at lower prices, the market may experience an increase of around USD 0,02–0,03 per kg. Farmer-held stocks have significantly decreased, making remaining supplies even more valuable.

Upcoming Harvest and Market Impact

The new peanut crop is expected to arrive in June, and its impact on market prices will depend largely on the harvest's quality and quantity. Government policy on stock sales will also influence price trends, potentially stabilizing or further tightening the peanut market in the coming months.