The stockists buying of groundnuts has started earlier than expected. In South India, due to less winter sowing in the current year, the demand for seeds in these states has also come out on a large scale, and its effect is also visible on the Indian peanut market.
Given the arrival status of groundnut in Gujarat, there is no possibility of more than 2.5 million tonnes of the crop. China’s purchase of groundnut seeds and groundnut oil is continuously increasing. 20 to 25% decrease in the production of groundnut crops in China will impact the Indian groundnut and groundnut oil market in the future.
Since the initiation of the season, there has been no possibility of a downtrend in the prices of all types of groundnut grains. Experts predict that if some unexpected reason occurs, it may decrease on a minor scale, but there is no potential for a downfall in the Indian peanut market.
The trade of groundnut oil with China has been closed for the last 20 to 25 days because Chinese buyers are offering to buy groundnut oil for $1900 per ton. In front of them, there is no trade due to the peanut oil’s parity from $1940 to 1950 per ton.
If groundnut oil prices decrease in the regional market, trade with China will be possible. Currently, the chances of reducing groundnut oil costs are increasing due to the slowdown in demand.
Groundnut crop condition in Gujarat is good, and the yield in the current year is also good. Due to this, 2.8 to 3 million tonnes of groundnut crop is estimated in Gujarat.
In Gujarat, 200 carts of groundnut are coming daily from other states. Despite this, at present, due to large-scale purchases of stockists, the possibility of reducing the price of groundnut is less. This makes it challenging to trade bold peanuts with China.
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