Groundnut oil prices expected to remain high

Rajkot: The oil millers in Saurashtra estimate the groundnut production this year to be between 22 lakh tonnes to 26 lakh tonnes, down about 20-25% compared to last year.
The reduced harvest will add to the already boiling prices of groundnut oil, they said.
Gujarat State Edible Oils and Oil Seeds Association has estimated 26.24 lakh tonnes production this year.
Samir Shah, president of the association said, “This year, the sowing area was reduced by two lakh hectares. One of the major reasons is farmers diverting to cotton as the crop yielded handsome returns last year. This year, soybean has also been sown significantly in Saurashtra.”
Shah added that the overstretched monsoon resulted in pests in the crops as there were less sunny days.
Groundnut is the premium crop of Saurashtra and cultivated in all the districts. According to industry experts, last year’s estimate was 33 lakh tonnes but the actual production was around 30 lakh tonnes.
The prices are also expected to remain high this year as groundnut harvest in South Indian states is drastically down. Also, the demand from China is good due to drought in several parts there.
Kishor Viradiya, president of Shri Saurashtra Oil Mills Association (SOMA) said, “We will be making our estimate public in the next couple of days, but it’s believed that the production will be around 22 to 23 lakh tonnes due to reduced acreage. The highest crop is estimated in Junagadh district followed by Devbhumi Dwarka and Amreli.