Groundnut Prices Seen Firm at ₹65-70 a Kg in Coming Harvest Season
Groundnut growers could see relatively firm prices during the coming harvest season, with market rates expected to remain around ₹65-70 a kg. The outlook comes from a pre-sowing assessment by the Domestic and Export Market Intelligence Cell (DEMIC) of the Centre for Agricultural and Rural Development Studies (CARDS), Tamil Nadu Agricultural University (TNAU).
The assessment draws on 25 years of groundnut price trends recorded at the regulated markets in Tindivanam and Sevur, supported by a survey of prevailing market conditions. The price outlook could provide farmers with an important reference as they decide the area to be brought under the crop.
India remains the world’s second-largest groundnut producer. In 2024-25, the country produced 119.42 lakh tonnes from 57.62 lakh hectares, with average productivity estimated at 2,073 kg a hectare, according to Agriculture Ministry data. Groundnut acreage rose by 3.17 per cent during 2025-26. However, uneven monsoon conditions and recent weather fluctuations have raised expectations of lower arrivals in some markets.
Tamil Nadu remains a key producer
Tamil Nadu has a significant share in India’s groundnut production. The State cultivated the crop on 3.15 lakh hectares and produced 7.69 lakh tonnes in 2024-25, recording productivity of 2,439 kg a hectare.
Thiruvannamalai, Namakkal, Villupuram, Salem, Cuddalore and Ariyalur account for much of the State’s groundnut cultivation. Although sowing takes place at different times depending on rainfall and irrigation availability, June to August remains the main planting window across several producing districts.
Groundnut has a diversified demand base in Tamil Nadu. A large share goes into oil extraction, while the resulting oilcake is widely used as a protein-rich feed ingredient for livestock. The kernels also find their way into household consumption and confectionery manufacturing.
With sowing decisions now closely linked to both weather prospects and market returns, the projected price range offers farmers a useful indicator while planning the next crop cycle.