Groundnut

Exporters of groundnut and sesame seeds have urged the Union government to provide 10% incentive under the Merchandise Exports from India Scheme (MEIS) to boost the export to China and the European Union (EU) Exporters of […]

The National Agricultural Cooperative Marketing Federation of India is planning to divert 400,000 tn of groundnut seeds, procured under the price support scheme in Gujarat, to millers so that the resultant edible oil could be distributed under state-run welfare schemes. NAFED procured over record 800,000 tn of groundnut alone in Gujarat. Of which half would be diverted to crushers so that the oil could be provided to the beneficiaries of welfare schemes like public distribution system and mid-day meal. Rest groundnut seed would be sold in open market to the traders.

The Commission for Agricultural Costs and Prices has recommended a hike of 440 rupees per 100 kg in the minimum support price of groundnut for 2018-19. For 2017-18, the government had fixed the support price of groundnut at 4,450 rupees per 100 kg, including a bonus of 200 rupees. For cotton, another major kharif crop, the panel has recommended a sharp hike of 1,130 rupees per 100 kg. It has suggested increasing the support price of medium-staple cotton to 5,150 rupees per 100 kg from 4,020 rupees a year ago, and that of long-staple cotton to 5,450 rupees from 4,320 rupees.

The huge stock of 8.5 lakh tonnes of groundnut procured at the minimum support price (MSP) of Rs 900 per 20kg has become an burden for the state government as it is finding it difficult to sell it to oil millers or in the open market. In addition to this, there is also 1 lakh tonned of last year’s stock carried forward, the quality of which has already deteriorated. In order to resolve issues that have been pending for long, the state government and officials of the nodal agency for groundnut procurement, National Agriculture Cooperative Marketing Federation of India (Nafed), have organized a meeting with members of the Saurashtra Oil Millers Association (SOMA) in Gondal. The main agenda was to convince the oil millers to purchase the huge stock for crushing.

Prices of groundnut fell in Rajkot, Gujarat, as demand from the cattle feed industry remained lacklustre and arrivals rose. Weak demand from domestic oil millers and overseas buyers also weighed on prices of groundnut seed.

Prices of groundnut were down in Gondal because of sluggish demand from oil millers. A 31.8% decline in the exports of the groundnut seed during Apr-Feb is also seen creating bearish sentiments. Exports of groundnut in Apr-Feb was at 449,190 tn as compared to 658,168 tn in the corresponding period last year.

IMD’s Agrimet has advised farmers in Telangana to spray insecticides on the groundnut crop to control the spread of stem rot disease. The disease causes severe seedling mortality resulting in patchy crop in sandy loam soils and reduces the yields by around 30%. The current weather in the state helps spread this disease in the groundnut crop. The state is among the major growers of rabi groundnut in the country.

IMD’s Agrimet division has advised farmers in Andhra Pradesh to speed up the sowing of groundnut during this month, as rains are likely this week. Agrimet has suggested groundnut varieties such as Dharani, Narayani, K6, K7 and K8 Bold, Kadiri Amaravathi and Bheema for sowing in the state.

As the government delays procurement of Groundnut, farmers are selling Groundnut at an estimated average of Rs 3,500 per quintal in Saurashtra region of Gujarat at prices which are much below the minimum support price (MSP). About a month before poll dates were announced for Gujarat, the state government had announced it would procure Groundnut at Rs 4,500 per quintal and Rs 50 as bonus over and above the central minimum support price. Small and marginal farmers who need money immediately are preferring the open market because there are long waiting lists for sale to government, and the government also takes a couple of weeks for making payment.

The National Agricultural Cooperative Marketing Federation of India, under the price support scheme, has procured 76,969 metric tonne of groundnut in shell in Gujarat and Rajasthan. NAFED procured the crop from growers as market prices fell below the minimum support price of 4,450 rupees per 100 kg, inclusive of a bonus of 200 rupees.

The National Agricultural Cooperative Marketing Federation of India has procured 44,194 metric tonne of groundnut in shell in Gujarat and Rajasthan under the price support scheme.

IMD’s Agrimet has advised farmers in Andhra Pradesh to take up sowing of groundnut in the ongoing rabi season. The department has suggested seed varieties like Dharani, Narayanai, K6, K7 and K8 Bold, Kadiri Amaravathi, Bheema, TCGS-1157 for groundnut sowing in the state.

The National Agricultural Cooperative Marketing Federation of India has procured 25,568 metric tonne of groundnut-in-shell in Gujarat and Rajasthan under the price support scheme. The procurement drive, which started late last month, is underway in eight procurement centres in Rajasthan and over 110 centres in Gujarat. NAFED started procuring the crop from growers as market prices fell below the minimum support price of 4,450 rupees per 100 kg, inclusive of a bonus of 200 rupees.

Despite weak demand, prices of groundnut seed were steady in Gondal, Gujarat, because of government procurement under minimum support price. The Gujarat government announced a bonus of 50 rupees per 100 kg on the minimum support price of groundnut in shell.

The National Agricultural Cooperative Marketing Federation of India has procured 14,219 metric tonne of groundnut-in-shell in Gujarat and Rajasthan under the price support scheme. NAFED started procuring the crop from growers as market prices fell below the minimum support price of 4,450 rupees per 100 kg, inclusive of a bonus of 200 rupees.

The Gujarat government is set to begin groundnut procurement operations, buying the oilseed at 900 rupees per 20 kg from farmers in the state.

The Centre has approved Gujarat government’s proposal for procurement of 350,000 metric tonne groundnut in 2017-18 (Jul-Jun). The government-mandated minimum support price of the oilseed is 4,450 rupees per 100 kg, inclusive of Centre’s bonus of 100 rupees per 100 kg. The move comes as prices of the pulses have fallen below the minimum support price in key markets of the state.

Output of the oilseed in the state for kharif season is estimated to be higher because of adequate and timely rainfall with no reports of crop disease. Output of groundnut in the state in 2016-17 kharif was also at a high of 2.94 metric tonne. Output of groundnut in the state in 2016-17 kharif was also at a high of 2.94 metric tonne. Meanwhile, carryover stocks of the oilseed as of September end are estimated at around 160,000 metric tonne. The association also sees lower export of groundnut seed and oil in Oct-Sep because of disparity in the international market.

Prices of groundnut seed were up in Junagadh, Gujarat, due to improved demand from domestic crushers and oil millers ahead of festive season. A fall in arrivals, coupled with improved demand from cattle feed industries, further supported groundnut seed prices.

Prices of groundnut seed were unchanged in Gondal, Gujarat, as demand from crushers supported prices, while higher stocks with the government limited gains. New crop arrivals of groundnut seed are expected to increase post Diwali to around 50,000 bags (1bag=20kg) from current arrivals of 25,000-30,000 bags. Prices of groundnut seed are expected to fall by 40-50 rupees from the current rates due to higher arrivals.