Gujarat’s groundnut exports likely to hit five-year low

AHMEDABAD: Groundnut exports from Gujarat could decline to a 5-year low in 2018-19, owing to lower production. The state’s exports of the oilseed will likely be 2.5 lakh tonnes in 2018-19, the lowest since 2013-14.

Groundnut exports from Gujarat — the largest producer and exporter of the commodity — was 1.79 lakh tonnes, worth Rs 1,224 crore, in April to November of the 2018-19 fiscal, says the Agricultural and Processed Food Products Export Development Authority (APEDA), citing data from the Directorate General of Commercial Intelligence and Statistics (DGCIS).

“Exports should reach 2.50 lakh tonnes by the end of the current fiscal, which is very low,” said Sameer Shah, president of the Saurashtra Oil Millers Association (SOMA).

Gujarat’s groundnut exports were at 3.22 lakh tonnes (valued at Rs 2,115 crore) in 2017-18. The reduced exports from Gujarat are expected to lower India’s overall groundnut exports in 2018-19 too. The first eight months of the current fiscal saw groundnut exports from the country stand at 3.10 lakh tonnes, against 5.04 lakh tonnes in all of 2017-18.

A drastic fall in groundnut production locally and their less competitiveness in the international market are the main factors responsible for the lower exports this fiscal.

The Solvent Extractors’ Association of India (SEA) pegged the kharif groundnut production in Gujarat at 15.95 lakh tonnes in 2018-19, almost half the 31.45 lakh tonnes produced in 2017-18.

“Some African countries such as Sudan and Senegal are very competitive in the international market and their exports have increased over the last two years. This has also affected our prospects,” Shah added.

To provide remunerative prices to farmers, the Gujarat government is procuring groundnut at a minimum support price (MSP) of Rs 1,000 per 20 kg, while market prices are between Rs 680 to Rs 800 per 20 kg. “As a result, several farmers are not selling their produce in the open market,” added an industry player.

“Groundnut exports could get a boost if its exports get incentives under the Merchandise Exports from India Scheme (MEIS), which provides 5% to 10% incentives on agricultural commodities. However, groundnut at present is not getting any incentive under the scheme,” the SOMA president added.