Groundnut yield may drop 43% this year

Groundnut yield is expected to plunge 43 per cent at 16 lakh million tonne (mt) this year compared with 28 lakh mt last year.

This was estimated today by Saurashtra Oil Millers' Association (Soma) members at the association's 57th annual general meeting (AGM) held at Amreli, near Rajkot.

The apex body of groundnut producers "� controlling nearly 95 per cent of groundnut production and trade in the country "� blames it on cotton crop, which is gradually replacing groundnut in the Saurashtra region.

The growth in cotton crop has indeed posed a serious threat to edible oil trade. Last year, groundnut yield was pegged at 28 lakh mt across the 18 lakh hectares in which the crop was cultivated, but with the cultivation having reduced drastically this year, we are estimating just 16 lakh mt of groundnut yield this year," Soma President Ukabhai Patel said.

This year, cultivation was spread over 16.51 lakh hectares, 1.50 lakh hectares less than last year, affecting the yield of the crop, he said.

"Excessive cotton cultivation across the region, with improvised sowing seeds like BT cotton, has by and large affected the cultivation pattern of groundnut crop across the state," Ukabhai said.

Given the poor yield estimates, groundnut shell prices jumped to Rs 31,500 per mt by the end of last week from Rs 27,000 per mt three-four weeks ago.

Ground nut kernel prices also rose to Rs 40,600 per mt last week from Rs 35,000 per mt three weeks ago, and are expected to continue the upturn considering the poor yield expectations.

Detailing on the district-wise cultivation statistics and tentative pricing for edible oil, trade expert and Soma member Suresh Kaneriya said Junagadh had registered cultivation over 3.80 hectares, followed by Jamnagar over 3.45 lakh hectares. Rajkot and Amreli registered cultivation across 2.70-2.75 lakh hectares, he added.

Again, while Bhavnagar had carried out cultivation across 1 lakh hectares of land, Kutch Porbandar and Surendranagar had done cultivation in land of 0.85 lakh hectares, 0.50 lakh hectares and 0.41 lakh hectares, respectively, Kaneriya said. North Gujarat "� comprising Sabarkantha, Banaskantha and Mehsana mainly "� cultivated groundnut across 16.50 hectares, he added.

As a result, in upper side, "we are expecting edible groundnut oil to touch Rs 800 per 10 kg and scale down up to Rs 400 in lower side, given the total groundnut yield at 16 lakh mt. Two lakh mt is likely to be utilised by farmers as cultivation seeds for next season, whereas 14 lakh mt will be actually available for processing", Kaneriya said.

Patel, the Soma president, said, "Amreli is likely to produce 1.25-1.5 lakh mt yield, followed by Jamnagar at 3.5 lakh mt. The major contribution will come from Jam-Kalyanpur Taluka, which should produce 1 lakh mt."