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India: output, exports and quality of groundnut exports tumbling.

  • India: output, exports and quality of groundnut exports tumbling

    by Market Insider

    Sunday, 01 Feb. 2015

    According to the Indian Agricultural and Processed Food Products Export Development Authority - APEDA, groundnut exports hit a record of 832,617 tons worth 1,094 millions US$ in 2011/12, which was considered an exceptional year. They have been falling consistently afterwards, down to 509,665 tons worth US$526 millions  in 2013/14.

    Although the exports jumped by over per cent to 261,025 tons, worth US$270.9 million  in the first half of the current financial year (as compared to 189,952 tons worth US$221 million in the corresponding period of last year), the total annual exports may be lower than in 2013/14 due to falling output. 

    Financial year


    Quantity (Tons)

    Value (Million US$)











    (April to September)











    Source: Apeda

    Despite the bumper groundnut production in 2013/14, the failure to procure groundnuts at Minimum Support Price and the delayed onset of the monsoon in Gujarat - the largest Indian groundnut producing state, forced farmers to shift to cotton and other crops. As a result, Gujarat's kharif groundnut production in 2014/15 is expected to not exceed 1.44 million tons, down 42 per cent from last year (2.5 million tons).  

    The global Indian area planted with groundnuts this financial year is estimated at 3.72 million ha, nearly 4 per cent less than in 2013/14 (4.32 million ha). The national kharif groundnut output is expected to reach only 3.57 million tons, which is 24 per cent less than past year's level of 4.71 million tons.

    The Federal Ministry of Agriculture released its first advanced estimate of groundnut output at 5.02 million tons in the on-going kharif harvesting season, as compared to last year's estimate of 5.6 million tons for the corresponding period. The total groundnut output in 2014/15 was estimated at 7.8 million tons. Groundnut exports might be lower this year due to the falling output.

    A Caryedon serratus (Olivier bug) infestation damaged the quality of several groundnut export shipments and is worrying the trade. Caryedon serratus infestations occur with high moisture on premature harvesting and improper handling and storage. Control and treatment are typically done through fumigation with methyl bromide.

    Last year, 35 containers (about 700 tons) of groundnuts were contaminated and consigned at a port in Vietnam. The consignments were cleared after fumigation, but the threat continues over possible suspension of groundnut imports from India. Under the Vietnamese law, imports shall be suspended if three consignments are detected with serious violation of food safety regulation within six months. Any such suspension would blemish India's credibility as good quality groundnut supplier.




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