The Hindu Business Line : Gujarat groundnut output pegged at 16 lakh tonnes

Gujarat is expected to produce 100 lakh bales of cotton this year as against last year's 85 lakh bales, out of the total national production of 250 lakh bales. But this optimism on the cotton front comes at the cost of groundnut production in the State, which according to the Saurashtra Oil Millers' Association (SOMA), is likely to plunge from 28 lakh tonnes last year to 16 lakh tonnes this year, a fall of 43 per cent.

SOMA made the estimate at its 57th annual general meeting held at Amreli on September 24.

SOMA is the apex body of groundnut producers who control nearly 95 per cent of groundnut production and trade in India.

Gujarat accounts for 40 per cent of the country's cotton production and 35 per cent groundnut output. Cotton yield in the State is 725 kg a hectare, next only to Punjab's 887 kg a hectare.

Dip in acreage

According to SOMA sources, the area under groundnut cultivation in the Saurashtra region has come down from 18 lakh hectares last year to 16.5 lakh hectares this year. On the other hand, the area under cotton cultivation has increased from 19 lakh hectares to 24 lakh hectares during the same period and in the same regions — Saurashtra and North Gujarat.

According to official sources, the reason behind this shift in cropping patterns, in these regions having black cotton soil suitable for Bt cotton growth, is that cotton gives better returns compared to the traditional groundnut.

Higher than MSP

As against the minimum support price (MSP) of Rs 1,985 per quintal for cotton, prices in the market were in the range of Rs 2,100 - Rs 2,500 per quintal last year. This year, MSP has been increased to Rs 1,990, and the current prices for cotton are already around Rs 2,200 per quintal. With the cotton crop facing rough weather in China and other countries, prospects for export are also bright, and, therefore, prices may go up further.

Price rise

On the other hand, the prices of groundnut had increased from Rs 2,700 per quintal to Rs 3,100 during the last six weeks, and are likely to go up to Rs 4,500 this year. Similarly, the prices of groundnut kernel rose from Rs 3,500 per quintal to about Rs 4,100 during the period. Reduced production of groundnut is likely to push up prices in the domestic edible oil sector.

Crop patterns & political equations

With a record 100 lakh bales of projected cotton production this year in Gujarat and a possible fall in groundnut yield by 43 per cent, the contours of the State's economy and politics may undergo a sea change for the first time in the last 75 years.

The shifting of crop pattern from groundnut to cotton is also likely to witness a shift in political patterns. Traditionally, the Saurashtra Oil Millers' Association (SOMA) has been the stronghold of the powerful Patel community, which has held the key to political power in Gujarat for the past seven decades.

SOMA has not enjoyed the best of relations with the current BJP Government headed by the Chief Minister, Mr Narendra Modi, who belongs to North Gujarat.

His active support to cotton growing is seen as a move to politically weaken SOMA and the Patel community.

Interestingly, both Mr Modi and his bete noire Mr Shankersinh Vaghela, the Union Textiles Minister, who also belongs to North Gujarat, are one on increased cotton production, though for different reasons!

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