Indian Peanut Market Are Under Pressure

The Indian peanut market continues to face pressure as cautious buyers respond to aggressive pricing. Exporters say that while low prices have sped up shipments, they’ve also made buyers more hesitant. Many now prefer to reassess minimum pricing before confirming orders.

Domestic Peanut Production and Sowing Drop Sharply

India’s summer peanut crop has declined significantly this season. Production in Gujarat and other key regions is expected to fall by about 50% compared to the seven-year average. In areas like Maharashtra (including Dakshineswar), West Bengal, and Uttar Pradesh, harvests have reached only 40–50% of last year’s levels. Even in Gujarat’s Saurashtra region, plantation activity has dropped, putting further pressure on overall supply.

Government Tender Policy Shapes Market Sentiment

In Gujarat, government agencies are preparing to sell peanuts through tenders under programs like NCF and Padna. Authorities have fixed a minimum bid rate, refusing to sell below USD 0,007 per kg. Recently, peanut prices in Pushi briefly touched USD 0,009 per kg but later settled at the same level. These shifts are shaping both sentiment and trading behavior.

Current Price Snapshot

Traders Watch Policy Closely as Supplies Remain Tight

Market participants believe that if government tender rates are not kept low, prices could rise by USD 0,002–0,003 per kg. At the same time, weak production and limited carryover stock have reduced overall trade activity. Moving forward, market trends in peanuts—and related crops like singdana and bhindi—will depend heavily on how the government manages tender sales and how quickly new crop arrivals begin in June.