The domestic production of peanuts in India is projected to increase significantly by 19.6%, with an estimated rise in cultivated area of 17 lakh hectares.

This increase will bring the total area under peanut cultivation to 103.60 lakh hectares in the 2024-25 Kharif season, up from 86.60 lakh hectares in the previous year. Gujarat, Rajasthan, and Karnataka remain the leading states in peanut production.

The government has responded to the drop in market prices by raising the minimum support price (MSP) of peanuts by 6.4%, setting it at Rs 6,783 per quintal.

This move aims to protect farmers from financial losses. The government has also decided to purchase peanuts at this MSP, with a target of buying 17.40 lakh tonnes nationwide. Gujarat will see the largest share of this, with a target of 11.30 lakh tonnes, while Rajasthan's target is 5.03 lakh tonnes.

The time frame for MSP purchases has been set from October 2024 to February 2025, with some state-specific adjustments: Rajasthan and Haryana will follow the same window, but Uttar Pradesh and Andhra Pradesh are yet to finalize their dates for procurement.

An increase in peanut sowing has also been recorded, with the area expanding by 4.10 lakh hectares to 47.85 lakh hectares in the 2024 Kharif season, primarily driven by an increase in Gujarat. Early indications suggest that the state's peanut production is set to be very strong this year.