Traders attribute the price upsurge to unavailability of stock with farmers and stockists. Cumulative daily arrivals have declined by 30-40 per cent in the last few weeks.
“New orders from China are not coming in now. Orders from Vietnam have also dried up. But the decline in orders is offset largely with reduced supply, supporting thereby groundnut prices
to remain firm. India has already surpassed the quantity of groundnut export of last year.
We expect another 150,000 tonnes of groundnut to be exported to take India’s overall annual shipment to 600,000 tonnes this year,” said Khushwant Jain, Chairman, Indian Oilseeds and Proudce Export Promotion Council (IOPEPC).
To take advantage of high prices, however, National Agricultural Cooperative Marketing Federation of India (Nafed) has started liquidating stocks.
To taste the market pulse, Nafed has come out with a small quantity tender to sell its groundnut which the Federation had procured in 2018. However, traders say the quality of nuts sold by the federation is sub-standard for export but can be used for oil extraction and direct consumption.
An email sent to Nafed did not elicit any response. Traders, however, believe that Nafed may wait for further rise in groundnut prices to liquidate its current year’s stock. As of February 25, Nafed has procured 718,019.35 tonnes of groundnut worth Rs 3655 crore for the current season at the minimum support price (MSP) of Rs 5090 a quintal.