Indian Farmers Selling Groundnut Higher than MSP to Open Market Buyers

Despite heavy losses due to rain, groundnut output soars in Gujarat. Indian farmers are selling groundnut higher than MSP to open market buyers. 

Around 4.70 lakh farmers sold groundnut at an MSP of Rs 1055 per 20 kg to Gujarat Civil Supply Corporation. However, due to high demand from exporters and oil mills, they prefer to sell at Agriculture Produce Market Committees (APMCs) at a price higher than MSP.

High Export Demand for Groundnut

Atul Kamani, Saurashtra APMC traders’ Association President confirmed that the prices in the open market are hovering around Rs. 1200 per 20 kg owing to robust demand from exporters and domestic oil mills. Moreover, the low-grade groundnut with high moisture content is fetching healthy rates between Rs 950 and Rs 1050. Besides, exporters are saving farmers the cost of labour and transportation by purchasing directly from their doorsteps.

Niraj Adhiya of DNS Brokers, a peanut exporting firm in Gujarat said that India is the primary source of groundnut until the nut starts arriving from Africa which will be in December. China is importing groundnut and its oil from India in huge quantities owing to low domestic production. Also, it is building reserves by importing more anticipating war crises.

Atul Chaturvedi, president of the Mumbai-based SEA stated that the country has exported around 20,000 tonnes of groundnut oil recently to China.

Government Procurement Begins

Around 267 farmers had sold their groundnut at different locations of GSCSCL by 27th October. The state government has opened 79 procurement centres, out of which 57 have been opened in 11 districts of Saurashtra, the region with the highest groundnut produce. The First Advance Estimate has pegged the groundnut production at 54.64 lakh tonnes whereas SEA has estimated the production to reach 37 lakh tonnes only. The government has increased MSP for it by Rs 255 from Rs 5,090 of the last Kharif season.

Selling Higher than MSP

The exorbitant price offered in the open market is luring farmers to sell their groundnut produce to APMCs. Despite requesting 8000 farmers via SMS to sell heir produce at GSCSC centres, only 300 farmers turned up. On the first day of procurement, GSCSC procured 5350 quintals worth Rs 280 lakhs. On the other hand, APMCs located all over the state are receiving around 8 lakh and one lakh sacks alone in APMCS situated in Rajkot, Gondal, Deesa, and Palanpur daily. The state government is procuring groundnut at Rs 5,275 per quintal. APMCs are offering Rs 6000 for the same.

In all, groundnut trade is higher than n previous year in Gujarat and farmers are getting better prices in open markets.MSP

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