Groundnut output in Gujarat likely to fall by 44%: SEA

Groundnut production in Gujarat is likely to fall by over 44 per cent to about 14.3 lakh tonnes this year against 25.9 lakh tonnes last year.

After a three-day crop survey conducted in groundnut growing regions of Gujarat during October 11-13, the Solvent Extractors’ Association of India (SEA) revealed that while kharif groundnut sowing in the state, which produces over 50 per cent of India’s groundnut has dropped by about 26 per cent, the yield is also likely to drop by 25 per cent against previous year.

“Delayed and irregular monsoon has adversely affected groundnut crop in the region. We expect yield to be affected by 25 per cent. Already sowing area has declined as farmers preferred cotton over groundnut for better prices,” B V Mehta, Executive Director, SEA told BusinessLine from Rajkot.

Groundnut acreage in the state has declined from 16.6 lakh hectares last year to about 12.2 lakh hectares this year. As per an estimate around 3.5 lakh hectare of groundnut area has shifted to cotton. 

According to SEA estimates, groundnut yield has also taken a beating due to bad weather conditions. The yield may decline to 1,170 kg per hectare against 1,560 kg per hectare witnessed last year.

Last year, groundnut prices had fallen below the minimum support price (MSP) levels of Rs 4,000 per quintal. “Farmers made losses as prices had dropped to around Rs 3,200-3,300 per quintal and government’s procurement machinery also did not help,” added Mehta. However, sharp decline in production in Gujarat may not have immediate impact on groundnut prices as international trends support the prices at present levels.

The Gujarat groundnut crop survey was conducted by SEA under the guidance from sector experts including Govindbhai Patel and Vinubhai Patel among other experts. The national data on groundnut production estimates will be released on November 9 after surveys would be conducted in other regions.

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