The export of HPS groundnut from Gujarat may decline owing to the new rules enforced by the Central government as well as increased competition from other countries.
Mukund Shah, president of Gujarat Oilseeds Processors Association said, ?After a drought-like situation last year, the good monsoon this year has given a bumper groundnut production of 24.5 lakh tonne. Last year, the Central government had brought in new rules for export of groundnuts which include compulsory registration as well as a certification of alfatoxin level, which led to decrease in export of groundnuts.?
According to industry experts, every year the average daily trading of groudnuts is 2,500 tonne, which has reduced to around 500 tonne this year. If exports are normal, then the rate of 20 kg groundnuts is between R950-1000. However, it has dropped to R550-750 this year. There are over 1,500 HPS processing units in Gujarat, most of which have not resumed operations after Diwali.
On the other hand, owing to the bountiful production and abundant supply of groundnuts, the prices of groundnut oil have come down by about 30% as decreased exports have led to easy availability of raw material for groundnut oil. Currently in Saurashtra, crushing of groundnut oil is carried out in 250 mills and cottonseed oil in 400 mills. Sameer Shah, president of Saurashtra Oil Mill-owners Association, said, ?Over the years, because of high price of groundnut oil, the demand for the same has come down as compared to other oils. This year, the price range of 10 kg side oils like cottonseed and soya bean oil is between R580 to R685. Whereas the rates of groundnut oil is approximately R800/20 kg. Because of reduced price difference between the oils, the demand for groundnut oil has shown an increment.?
