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Gujarat, one of the leading groundnut growing states in the country, is set for higher groundnut acreage this kharif season.
In the wake of the early onset of the monsoon, groundnut acreage in the state has already touched 1.41 million hectares as on July 1. This assumes importance as the average groundnut sowing (for the last three years) is estimated at around 1.44 million hectares in Gujarat.
Sowing of groundnut has been done in 1.41 million hectares till July 1 against 0.22 million hectares in the corresponding period last year, according to the data released by the state agriculture department. This accounts for 97.6 per cent of the average sowing area for groundnut in the state. The sowing is expected to increase with the strengthening of the monsoon in the state.
However, groundnut prices have declined 25 per cent in June this year, on lower export demand and higher availability. According to traders, the prices have also gone down because groundnut from Maharashtra, Rajasthan and Uttar Pradesh have arrived in the Gujarat market for sale.
Normally, the summer groundnut crop is used for export. But, following new regulations, exports have dipped after February. Traders said while Saurashtra's summer groundnut production has declined, the overall crop was normal across the country.
The price of groundnut during June had declined by Rs 275 to Rs 700- Rs 840 per 20 kg from Rs 1,090- Rs 1,100 per 20 kg.
Around 45,000-50,000 bags are arriving in the state every day. Out of these, around 60 percent is coming from other states like Rajasthan, Maharashtra and Uttar Pradesh.
A Rajkot-based groundnut trader, on condition of anonymity, said: "Saurashtra's summer groundnut production was nominal due to water shortage in this area but other parts of Gujarat like Bardoli, Panchmahal, Banaskantha and Sabarkantha have had good production this year."
"On the other hand, demand for groundnut export has decreased, which has pulled down the price," the trader said.
He further said this year, summer groundnut production in Gujarat was about 100,000 tonnes while in India, it is expected to be around 500,000 tonnes.
"Summer groundnut cannot be used for crushing as the oil content is lower. A majority of the produce is exported. But this year, export has declined due to new rules for groundnut export. Shelling units also sold their stock in the open market this time", said Mukund Shah, president of Gujarat Oilseeds Processors Association.
Throughout the country Area coverage during Kharif 2013 is higher by 16.75 lakh ha compared to corresponding period of Kharif 2012, result of higher area coverage in the state Gujarat due to good rainfall. Normal area under groundnut in the country is 4.9 million hectares.
