Weekly Review-Peanuts

22-Feb-2025 09:04 PM

Good arrival and limited demand weakens the price of peanuts

Market Overview:

• Arrival: There has been a good arrival of peanuts in major producing regions, particularly in Gujarat, Uttar Pradesh, and Rajasthan. In Gujarat’s important mandis like Gondal and Rajkot, daily arrivals ranged from 10,000 to 15,000 sacks. Uttar Pradesh saw arrivals in mandis like Jhansi, Mahoba, and Maruranipur, where prices saw a modest increase.

• Price Trends:

  • Peanuts in Rajkot: Prices were as high as Rs 6000-8000 per quintal on February 18th but dropped to Rs 7000 per quintal by February 21st.
  • Peanuts in Uttar Pradesh: Prices were still below the Minimum Support Price (MSP) of Rs 6783 per quintal, despite a minor Rs 100-150 increase.
  • Groundnut Seeds: Prices for shelled groundnut seeds remained stable with slight price increases in different markets. For example, in Jaipur, 60/70 count groundnuts saw an increase to Rs 7300 per quintal. In Nagpur, 50/60 count seeds saw a jump of Rs 600 to Rs 11,100 per quintal.

• Groundnut Oil: There was strong demand for loose groundnut oil, which led to a price increase of Rs 20 to Rs 60 per 10 kg in some regions, including Tonk and Bikaner. Branded groundnut oil prices also saw a rise of Rs 20-30 per 10 kg, while groundnut DOC remained stable due to limited trading.

Key Insights:

• Despite a good arrival of peanuts, the lack of substantial trade and weak lifting activity has led to a decline in prices.
• Government procurement has almost ceased, reducing a key source of market support.
• Groundnut oil demand remains robust, especially in loose form, driving price increases.

Outlook:

• The price trends suggest that while peanut arrivals are good, demand-side weakness could keep prices under pressure in the short term.
• The strong groundnut oil demand might continue to keep oil prices supported.