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Groundnut is an important oilseed crop suitable for cultivation in tropical areas of the world. Groundnut is believed to be a native of South America and scientifically known as Arachishypogaea L.. Unique feature of this plant is its quick adaptability to a wide variety of climatic conditions.


Groundnut is the third largest oilseed produced in the world and second largest in India. India occupies the second position in terms of production and first in terms of area. China is the single the largest producer as well as consumer of groundnut in the world.



Economic Importance


Groundnut seeds are rich source of edible oil (43-55%) as well as protein (25-28%). About two thirds of world production is crushed for oil and the remaining one third is consumed as nuts. The cake or meal is used as animal feed and the shell sometimes used as fodder.



Climate and Cultivation


Although, the groundnut plant is adaptable for wide climatic conditions, it requires 14 to 16oC for germination, a long and warm growing season lengthens flowering. High temperatures result in the best performance in terms of length of the stem, number of flowers and number of pods. Maximum number of pods will be at mean temperatures of 23oC. Good yields are expected with a well-distributed 37 to 60 cm of rainfall during the crop period. However, summer groundnut crop can thrive with 12.5 to 17.5 cm rainfall during the fortnight after sowing and 37 to 60 cm during the growth of the crop.



Crop calendar


Although the crop can be grown in all the seasons, kharif season production accounts for about 80 % of the total production. More than 90 % of the groundnut area is grown under rainfed condition. Kharif crop is grown during June-September period in majority of Gujarat and Maharashtra. In southern region it is grown as kharif as well as rabi crop and in southeastern states it is even cultivated in rice fallows during October-March. Groundnut is also cultivated during January-May as a summer crop under assured irrigation.


Major Cultivated Varieties

Kharif: Vemana (K 134), TPT I, TPT 2, TPT 4, JCG 88, K5, Narayani, JL 24, TMV 2

Rabi: TPT 2, K 134, TPT 4, K3, ICGS 11, ICGS 44, DRG 12, DRG 17, K6



Major Markets

Major physical markets: Rajkot, Ahmedabad, Mumbai and Delhi are the major trading centers.

Futures markets: Groundnut is not traded in futures markets.



External Trade


India has been net exporter of groundnut seed. Major export destinations are Asian countries.



Major export destinations: Indonesia, Vietnam, Malaysia, Philippines, Thailand, Ukraine and Pakistan.

Major import sources: NA




Factors Influencing Prices


  • Crop condition and output expectations: Extent of area sown under the crop, condition of the crop and output expectation.
  • Monitoring of rainfall and weather conditions that could affect the crop output.
  • Demand expectation: Any changes in demand both domestic as well as international markets.
  • Being export oriented commodity, its prices are also influenced by exchange rate.
  • Stocksavailable in the market.
  • External demand and supply: Demand supply situation in major import sources.
  • Trade policies: Any change in government policy relating to change in tariffs etc.,