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Peanuts: low-quality supplies

August 31, 2026 at 8:51 AM , Der AUDITOR
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NEW DELHI. In India, government agencies are selling low-quality stocks. Production will take a hit in the state of Gujarat. Farmers are to plant more peanuts without needing extra land.

Trying to sell low-quality nuts

Local market prices have faced consecutive downfalls in the past two weeks, the main reason being the speedy materialisation of crop from government agencies. These agencies such as NAFED and NCCF are now intending to reduce the price from USD 73.60/quintal to USD 68.50/quintal, which will add even more supplies to the free market. Issue is that nearly 250,000 mt of the government held stocks have a 2.5 % free fatty acid level, indicating that the peanuts are starting to turn rancid.

Furthermore, other edible oil imports are occurring in full force. According to estimates India will import 750,000 mt of palm oil, 575,000 mt of soybean oil and 175,000 mt of sunflower oil in August. Sunflower oil prices are currently highest. They even range 5-7% higher than groundnut oil prices. Due to the disruptions in Russia and Ukraine India has started sourcing from other nations as well.

Lower production in Gujarat

Advice for buyers is to delay purchases by one to two weeks as rates may soften. Gujarat will witness a reduction in yields and if rainfall does not occur in next two weeks, the standing crop may get severely damaged. Yet, the bumper crops in Uttar Pradesh and Madhya Pradesh will compensate for this decline in production. Export prices are fixed.

Peanuts, with skin

Type

USD/mt

Bold, 40-50

1,245

Bold, 50-60

1,205

Bold, 60-70

1,190

Java, 50-60

1,310

Java, 60-70

1,225

Java, 70-80

1,230

FOB India

More oil without extra farmland

India is encouraging farmers to grow peanuts in the empty spaces between rows of sugarcane to produce more oil without needing extra farmland. Because peanut varieties grow quickly, farmers can harvest them before the tall sugarcane plants block the sunlight. This method enriches the soil with nitrogen, keeps moisture in the ground, stops weeds and even increases sugarcane yields by 10%. By expanding this technique, especially in major farming states such as Uttar Pradesh, with government support for seeds and machinery, India aims to produce hundreds of thousands of tonnes of extra peanuts and lower dependency on imported cooking oils.

 

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price chart, peanuts, with skin, 40/50, Bold, India
price chart, peanuts, with skin, 50/60, Java, India
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