Groundnut is considered as one of the universally preferred oil seed crops and is grown throughout the world.

It has gained a lot of economic and nutritional importance worldwide. In the recent past groundnut has become a replacement for expensive nuts such as almonds, cashews and pistachio in urban snack bars. Over 60% of groundnut produce goes to the snack-food industry, which is growing at 35 percent per year. Bold and sweet tasty hand-picked seeds are in high demand in China and Indonesia. Price of groundnut oil for a 15kg container selling at Rs 1173 in 2010/11 has gone up to Rs 2139 in 2011/12 due to low availability.  In India, About 7.5 million hectares is put under the crop annually and the production is about 5.56 million tonne. 70% of the area and 75% of the production are concentrated in the four states of Gujarat, Andhra Pradesh, Tamil Nadu and Karnataka.

Gujarat is the leading producer contributing 29.63 per cent of the total production followed by Tamil Nadu (20.78%), Andhra Pradesh (15.23%), Rajasthan (8.23%), Maharashtra (8.23%) and Karnataka (7.82%).

The groundnut oil production in India hovers around 1.5 million tonne per year. India is placed 2nd in the world groundnut consumption list. The country actually consumes almost its entire groundnut produced which is around 30% of the world’s total consumption. The main demand for groundnut and derivatives originate from the western and southern parts of the country. Falling rupee, high interest rates and global turmoil may, however, lead to companies increasing prices of edible oil by 3-5% by the end of June.

            In Karnataka, normal area under groundnut is 8.6 lakh hectares with a production of 6 lakh tonne. The major groundnut growing districts are Chitradurga, Dharwad, Belgaum, Bijapur, Raichur, Bellary and Bidar. About 70 percent of the crop is grown in black soil and the remaining in red soils.

            The price analysis for the benefit of farmers to take sowing decisions was made by the NAIP market intelligence centre of the Department of Agricultural Marketing, Cooperation and Business Management, University of Agricultural Sciences, Bangalore. The price forecasts are provided for November-December 2012.

            The good quality groundnut prices are likely to be higher during November-December especially due to demand from Tamil Nadu for seed purpose. The prices are expected to be in the range of Rs 3700-4000 per quintal. Increasing demand for confectionary, reduced market arrivals of sunflower crop is likely to keep the groundnut prices in uptrend. 


NAIP project on “Establishing and networking of Market intelligence centers in India”


Dr. C.P.Gracy, CCPI,

Nagashree,N. SRF

Akshata Nayak, SRF 

Girisha, K.  SRF

Dept. of AGMACO & BM,

University of agricultural sciences,
Contact us at :9620888824/8095312207/9036198975/7795072715


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