Mundus Agri. Farmers are in full control of India’s peanut market. Not only do they still hold more than 35% of all stocks, but they also know how to play to their advantage. Artificial intelligence may also prove an asset in limiting aflatoxin contamination.
Superior nuts in short supply
The trouble is that the farmers are not only simply holding back but they also only release their stocks at intervals after every price rise. The market is, consequently, facing a supply squeeze for superior quality nuts on all levels. Related industries cannot buy large volumes at present and many factories can only operate at half capacity. Groundnut oil producers and exporters are also having trouble finding the volumes they require.
International pressure is, in addition, lacking. As the prices for imports from Sudan range 30% higher than in India traders are far from interested in buying. Prospects are also bleak in Brazil and Argentina since delayed rains are expected to reduce yields by nearly 10%. Yet, the situation is about to turn. The issue is that the winter crops are anticipated to be large in Tamil Nadu and Odisha and will start arriving in March. Expectation, therefore, is that prices will continue to rise a bit until the end of February before slowly starting to come down again in March.