• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

G. Chandrashekhar

Junagadh, (Gujarat), Oct. 13

HECTIC speculation over the size of groundnut crop seems to be keeping traders and middlemen busy in the Saurashtra region of Gujarat, the groundnut bowl of the country. Rains early this month are believed to have enhanced the crop prospects, but there is a suspense over not only the crop size but also quality.

In case of early arrivals, the moisture content is as high as 8 per cent and more. Bunch or java varieties now coming into the market are far from uniform in size or shape or colour.

Because of low dormancy, kernels have started to sprout.

The quality of early harvested runner or bold varieties is also below expectation. The kernels are somewhat shriveled; but many believe, the harvested stock that would come into the market over the next 10-15 days would be considerably better.

During the two-hour drive from Rajkot to Junagadh, this correspondent saw farmers busy with harvesting operations on vast stretches of land planted to groundnut. In some places, the vegetative growth was spotty and leaves had turned somewhat yellowish.

Kharif groundnut crop arrivals that started a few days ago are gathering momentum in Saurashtra. Although showers last week put a break on harvest briefly, farmers are now busy with cutting the ready crop.

Across the State, groundnut in-shell inflows are estimated at about 1.5 lakh bags a day. Over the next few days, the volume is expected to rise to over two lakh bags. Currently, farmer stock groundnut is quoted at Rs 380-390 per 20-kg bag and there is expectation the price would decline to around Rs 370/20 kg when arrival volumes improve.

According to the Gujarat Government, area for groundnut totalled 17.5 lakh hectares this season, down from 19 lakh hectares of kharif 2003. The long dry spell of July reportedly affected crop development including germination of crop in some areas.

While a recent report by a group of traders pitched the crop size at 17 lakh tonnes, up from initial estimate of 12 lt, traders and researchers placed the Gujarat groundnut crop at about 15 lt.

Medium count, that is 55/65 kernels per ounce or 60/70 per oz is currently offered at between Rs 27,000-28,000 a tonne.

Exporters have already begun to sign export contracts for supply of selected peanuts, especially to the South-East Asian markets such as Indonesia, the Philippines and Malaysia.

Unlike the European countries, these markets are not unduly concerned about aflatoxin, a mouldy growth that affects groundnut quality. Kernel shipments would begin second half of October, traders said. Oil mills are also mopping up the crop coming into the market.

The big question everyone is asking is how much groundnut oil would India export this season. It is estimated that about 30,000 tonnes have already been committed at prices of around $1,000 a tonne.

However, to strike parity, local groundnut oil prices have to decline from the current levels to about Rs 47,000 a tonne.

More Stories on : Oilseeds & Edible Oil | Standards & Benchmarks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Loan repayment scheme for Wayanad farmers relaxed

Copyright © 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line