The Hindu Business Line : Despite good yield, groundnut farmers worried about prices

Ahmedabad, Oct 14 A projection of good yield of 21.2 lakh tonnes (lt) in kharif groundnut in Gujarat does nothing to relieve farmers who fear low prices in the markets.

With the global reduction in oil prices, the farmers might have to settle for a lesser price for their groundnut. The current market price of groundnut in shell is Rs 480-500 for 20 kg. The price was more than Rs 600 for 20 kg in June, when the crop was being sown, said Mr Govindbhai G. Patel, Chairman, COOIT Crop Estimate Committee and Managing Director, Dipak Enterprises Ltd.

Despite a dry spell in parts of Gujarat in late July-August, the State managed to exceed last year’s production of 18 lt with areas such as Porbandar and Junagarh doing well on continuous scanty rain or irrigation systems.

‘ALLOW EXPORTS’

Echoing ongoing concerns of the edible oil industry, Mr Patel said edible oil exports should be allowed and duty applied on imports of the same.

“The Government should take a step now, not a month later, when the poor farmer will have sold his yield. The big farmers can wait, but not the small farmers. Besides, groundnut oil is consumed by the affluent class of people and increasing its price by Rs 50 or 100 will not affect the average man,” he said.

He added that farmers producing groundnut might consider shifting to other crops if the current situation continued.

IMPORT DUTY

According to Mr B.V. Mehta, Executive Director, The Solvent Extractors Association of India, who recently did a reccee of groundnut producing areas in Gujarat, most farmers were in two minds of when to sell the crop. He reiterated that exports of edible oil should be re-opened and an import duty of 20-25 per cent should be applied on palm and soybean oil in order to stabilise the price for the farmers.

Of the country’s total groundnut produce of 73 lt last year, Gujarat contributed about one-third, that is, 24 lt. The output of groundnut rabi is projected at 20-25 lt in February-March in Gujarat, said Mr Mehta. The national produce of groundnut kharif is expected to have touched 50-52 lt and together with rabi, should touch around 70-75 lt, he added.

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