Decline in Groundnut and Soybean Prices

26-Dec-2024 12:39 PM

Decline in Groundnut and Soybean Prices

Groundnut and Groundnut Oil:

Gujarat's production is expected to reach 45 lakh tons this year, up from 35 lakh tons last year.
Excess production has pushed mandi prices below MSP, leading farmers to sell at government centers.
Government procurement has reached 3.86 lakh tons, with Gujarat contributing 2.88 lakh tons. The procurement target for this year is 13 lakh tons.
Indian export prices for groundnuts are $900/ton, higher than African prices of $750-800/ton.
Annual exports of groundnuts and groundnut oil from India are 5-6 lakh tons and 1 lakh tons, respectively, but may shrink to 2 lakh tons and 25,000 tons due to high prices.
MSP-procured groundnuts will increase availability when sold, and cheap edible oil imports will keep price pressure high.
Soybean:
Similar situation in soybean; prices are significantly below MSP.
Despite increased import duties, prices remain low due to bumper production and high carryover stocks.
Out of the 33.85 lakh ton procurement target, 6.7 lakh tons have been procured, with 3.36 lakh tons from Madhya Pradesh and 2.03 lakh tons from Maharashtra.
Estimates suggest total procurement may reach 8 lakh tons.
Large imports of edible oils have led some plants to stop buying.
Future government sales of procured soybeans may exert further downward pressure on prices.
Caution: Avoid aggressive trading in groundnuts or soybeans due to excess supply and price pressures.