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Even as groundnut production expected to rise this year cooperative bodies have started procurement to avoid any sudden fall in groundnut prices. Gujarat Co-operative Marketing Federation Limited (also known as Gujcomasol) has started procurement of groundnut in Gujarat first time after as many as 11 years.
The cooperative body will buy groundnut on behalf of National Agricultural Cooperative Marketing Federation of India Ltd (Nafed). The Federation has started buying groundnut since last Friday from 17 centers across Gujarat including Rajkot, Gondal, Junagadh Himmatnagar, Modasa and others.
“After a very long time, Gujcomasol has entered to procure groundnut. The decision has been taken for the groundnut farmers as this year groundnut production is expected to be very high,” said Govind Patel, state agriculture minister.
Sources informed that last time in 2001 Gujcomasol and Nafed had procured groundnut in Gujarat. The agencies enter the market whenever the market price falls below minimum support price (MSP) levels.
MSP of groundnut is Rs 800 per 20 kg. At presently, groundnut price is ruling around Rs 600 to 750 per 20 kg in Gujarat. Per day arrival of groundnut is about 80,000-85,000 bags (40 kg each bag) and it will increase over 125,000 bags by end of this month.
Patel said, “The purpose behind this decision is to give better price to groundnut farmers and balance the market.” If the market price will go beyond Rs 800 per 20 kg then Gujcomasol will stop procurement of groundnut.
Various trade organizations of India have predicted bumper groundnut production in the country. According to survey report by trade bodies, groundnut production is likely to double this year due to good monsoon and higher sowing.
Indian Oilseeds and Produce Export Promotion Council (IOPEPC) predicted that groundnut production during Kharif 2013 is estimated to be 4.91 million tonnes in five major states Gujarat, Rajasthan, Andhra Pradesh, Karnataka and Tamil Nadu which account for close to 90% of total groundnuts produced in India.
This is higher by 2.10 million tonnes as compared to Kharif 2012, when the crop was only 2.81 million tonnes in these states, owing to monsoon failure.
Similarly, Solvent Extractors’ Association of India (SEA) recently released kharif crop estimate of the Central Organization for Oil Industry & Trade (COOIT), which hosted the 51st All India Convention of Oilseeds, Oil Trade & Industry at Delhi last month.
The COOIT report stated that kharif groundnut production for the year 2013-14 will be 4.71 million tonnes as against last year’s 2.62 million tonnes, higher by 2.09 million tonnes. For Gujarat it has estimated production of 2.50 million tonnes.
