The Hindu Business Line : Groundnut kernels in good demand overseas

BUOYED by a combination of favourable factors such as increased domestic output, expanding world demand and workable price parities, groundnut kernel exports from the country are doing well since the harvest last September.

What's more, this season, Indian groundnuts are finding their way in larger volumes into the European markets that had in recent years shunned the origin because of suspect quality.

During the last four months — October 2003 to January 2004 — groundnut shipments aggregated an estimated one-lakh tonne, according to Mr Kishore Tanna, Chairman of Indian Oilseeds and Produce Exporters Association. The value of exports is over Rs 220 crore.

"It is gratifying that the European Union purchased about 35,000 tonnes from us this season, while some parcels for Canada and Mexico were also traded", he pointed out adding that the Far East countries such as Indonesia, the Philippines, Malaysia and Singapore continued to be the main markets.

Prices received by Indian exporters were in the range of $570-$600 a tonne free-on-board. Ocean freight rates to the Far East markets are said to be as low $10 a tonne.

Mr Tanna expressed optimism that on a crop year basis, exports have the potential to reach two lakh tonnes or around 10 per cent of the world peanut trade.

Meanwhile, India is a beneficiary of the growth in world peanut trade.

Global imports have grown by a fifth since 1999-2000. Much of the growth has taken place in Eastern Europe and former Soviet Union where improving economic conditions have increased consumer discretionary incomes.

This has helped spur the purchases of snack nuts and confectionary products containing peanuts. Recent investment in the manufacture of confectionery and snack products has also increased the demand for peanuts. This is also true for West Asia and North Africa.

A combination of improved economies and/or expansion in manufacturing capacity has helped boost imports. Contrasting these growth markets, imports into Western Europe and North America have remained stagnant to declining, the US Department of Agriculture (USDA) observed. EU imports are most likely unchanged since 2000-01 while in the US, imports declined beginning in 2002-03.

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