G'nut output likely to fall as farmers shift to other crops
The domestic groundnut crop may be lower this season as the acreage under cultivation has dropped significantly with farmers moving away to other higher revenue generating crops.
By Narayan Bhatt, TNN |
AHMEDABAD: The domestic groundnut crop may be lower this season as the acreage under cultivation has dropped significantly with farmers moving away to other higher revenue generating crops. “The groundnut crop acreage has dropped to around 32 lakh hectares this year from 55 lakh hectares a year ago,” says Ukabhai Patel, president, Saurashtra Oil Mills Association (SOMA).
In Gujarat, the state government figures show that the area under cultivation is down from 18 to about 16.5 lakh hectares this season.
But, Mr Ukabhai says that this data is wrong and according to their information the acreage which was 16.5 lakh hectares last year has come down to 14 lakh this year. “The cheap edible oil policy followed by central and state governments is leading to farmers moving away from oilseeds to other crops which give better prices,” he says.
Govindbhai Patel, former president of the Central Oilseeds Association, told ET that apart from the lower acreage, even the rains have not been sufficient so far.
The first crop planted in June first week, which constitutes around 30% of total plantation, has so far received three spells of rain. The crops planted in June end and early July have still to receive more rains.
As the price of groundnut crop is around Rs 17,000 per tonne against about Rs 23,000 for cotton, many farmers have moved over to the latter. “The scenario in Gujarat, in fact, is much more alarming if one were to compare the current 14 lakh hectares cultivation against the 19 lakh plus hectares covered the year before last,” says Mr Ukabhai.
Tapan Mishra, product head for oil and oilseeds at the National Commodity & Derivatives Exchange (NCDEX) told ET that amongst the oilseeds in India, mustard, soyabean and groundnut are the three largest ones and the most critical.
Groundnut shell an groundnut oil futures contracts were launched on the NCDEX in January ’06. “The volumes are low as it is still the lean season. Once the groundnut season picks up from October onwards, we expect futures trading volumes to pick up,” says Mr Mishra.
In Gujarat, the state government figures show that the area under cultivation is down from 18 to about 16.5 lakh hectares this season.
But, Mr Ukabhai says that this data is wrong and according to their information the acreage which was 16.5 lakh hectares last year has come down to 14 lakh this year. “The cheap edible oil policy followed by central and state governments is leading to farmers moving away from oilseeds to other crops which give better prices,” he says.
Govindbhai Patel, former president of the Central Oilseeds Association, told ET that apart from the lower acreage, even the rains have not been sufficient so far.
The first crop planted in June first week, which constitutes around 30% of total plantation, has so far received three spells of rain. The crops planted in June end and early July have still to receive more rains.
As the price of groundnut crop is around Rs 17,000 per tonne against about Rs 23,000 for cotton, many farmers have moved over to the latter. “The scenario in Gujarat, in fact, is much more alarming if one were to compare the current 14 lakh hectares cultivation against the 19 lakh plus hectares covered the year before last,” says Mr Ukabhai.
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Tapan Mishra, product head for oil and oilseeds at the National Commodity & Derivatives Exchange (NCDEX) told ET that amongst the oilseeds in India, mustard, soyabean and groundnut are the three largest ones and the most critical.
Groundnut shell an groundnut oil futures contracts were launched on the NCDEX in January ’06. “The volumes are low as it is still the lean season. Once the groundnut season picks up from October onwards, we expect futures trading volumes to pick up,” says Mr Mishra.
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