We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry. current time
Edible Oil Imports and 250,000-Tonne Peanut Stocks Pressure India’s Oilseed Market
India’s peanut market has come under renewed pressure as government agencies accelerate the release of stored stocks, while concerns over production in Gujarat add uncertainty to the new crop outlook. The combination of additional supplies, strong edible oil imports and weather risks is keeping the market under close watch.
Peanut prices in local markets have declined for two consecutive weeks, largely because government-held stocks are entering the market at a faster pace. Agencies including NAFED and NCCF are considering lowering the selling price from around USD 73.60 per quintal to USD 68.50, which could place further pressure on open-market values.
The quality of a significant portion of these stocks is also becoming a concern. Nearly 250,000 tonnes of government-held peanuts reportedly have free fatty acid levels of about 2.5%, indicating deterioration and a growing risk of rancidity. Faster liquidation of such stocks could therefore add sizeable volumes to the market and weigh on prices in the short term.
The domestic oilseed market is facing additional competition from large imports of edible oils. India is estimated to bring in around 750,000 tonnes of palm oil, 575,000 tonnes of soybean oil and 175,000 tonnes of sunflower oil during August. Sunflower oil remains the most expensive among the major imported oils, with prices currently around 5–7% above groundnut oil. Disruptions affecting supplies from Russia and Ukraine have also encouraged Indian buyers to diversify sourcing towards other origins.
For the immediate market, softer prices remain a possibility. Buyers are therefore likely to remain cautious, with purchases potentially being deferred for another one to two weeks in anticipation of better rates.
On the production front, Gujarat is emerging as a weak spot. Peanut yields in the state are expected to decline, while a lack of rainfall over the coming two weeks could cause further damage to standing crops. However, the expected bumper harvests in Uttar Pradesh and Madhya Pradesh could partly offset losses from Gujarat and prevent a major nationwide supply deficit.
Export values for Indian peanuts remain largely settled, with FOB prices varying according to variety and grade. Bold 40–50 is quoted around USD 1,245 per tonne, while Bold 50–60 and 60–70 are around USD 1,205 and USD 1,190, respectively. Java varieties range between approximately USD 1,225 and USD 1,310 per tonne.
Meanwhile, India is exploring ways to raise peanut production without expanding farmland. One approach involves planting quick-growing peanut varieties between sugarcane rows. The system can provide additional oilseed output while improving soil nitrogen, retaining moisture and suppressing weeds. It may also support sugarcane productivity, with potential yield gains of around 10%.
With suitable seeds, machinery and policy support, wider adoption of this intercropping model could generate substantial additional peanut supplies and help India reduce its dependence on imported cooking oils.
