Groundnut exports from India fell by 32% in 2015-16

Groundnut exports from India fell by 32% in 2015-16 due to higher prices in local market, followed by a ban by Vietnam, the largest importer. Due to lower production, prices have remained at the higher level during the year.

India has exported 536,929 tons groundnut in 2015-16, against 788,307 tons in 2014-15, as per the data compiled by the Indian Oilseeds and Produce Export Promotion Council (IOPEPC). Vietnam had imported 183,771 tons groundnut from India in 2014-15 but due to the ban the country’s import reduced to 18,418 tons in 2015-16. Several importing countries have raised complaints about quality of Indian peanuts. Major importing countries like Vietnam and Indonesia have already tightened the rules. According to the IOPEPC data, export to Indonesia has also decreased to 173,966 tons as against 183,355 tons.

Production of groundnut has declined because of the poor monsoon last year. Groundnut production decreased to 3.2 million tons in kharif 2015 from 3.5 million tons for the corresponding period last year. Lower output has increased groundnut prices in domestic market by 15%. On an average groundnut is being traded between Rs 80,000 per ton and Rs 95,000 per tons in India during the year.

Since last couple of years, IOPEPC is trying to convince peanut manufacturers to upgrade their units. Because of the new rules by several importing countries, initially volume of exports may have declined but it will be in line in next two or three years.