In terms of region, Rajkot is expected to see the highest groundnut production of around 525,000 tonnes, followed by Junagadh (485,000 tonnes) and Devbhoomi Dwarka (390,000 tonnes). Saurashtra and north Gujarat had seen some loss of kharif sowing due to incessant rain and flooding.
The state government has also raised its minimum support price (MSP) for the crop. And, decided to buy a limited amount at the MSP of Rs 900 per 20 kg against the current market price of Rs 750-800 per 20 kg; a sum of Rs 500 crore has been allotted for this.
"This may lead to reserved selling by farmers in the open market for the time being," said Mehta.
The SEA report says there is also stock with the central government's Nafed of 110,000 tonnes, besides at least 50,000 tonnes with farmers and traders in Gujarat.
Local production of groundnut oil will be higher, due to better availability of groundnut seed for crushing.