Peanuts: Pest infestation causing concern to farmers

Mundus - Agri: Some Indian growers are reporting a pest infestation in the fields and have taken immediate action with the help of the government and universities. There is also an exciting development in the peanut oil market.

Government decision brings relief

Even though prices have risen again by USD 10/mt compared to last week, Indian market players are not very confident about the coming weeks. According to them, demand has dropped drastically, and they also report some friction in the oil market. Oil producers stocked up on large quantities of peanuts last month and now that peanut oil prices have fallen, they are reluctant to sell so as not to incur losses. However, there is a ray of hope in the Gujarat government's decision to add a litre of peanut oil to the supply packets for people living below the poverty line as part of the upcoming Janmashtami festival.

Pest infestation in Junagadh

The news that more acreages are suffering from a pest infestation is of great concern to market players. Known as 'munda' in the local language, caterpillar-like insects are attacking the plants and damaging them to a great extent. Farmers from Junagadh district, in particular, have reported the presence of the pests in their fields, and the government has taken action with agricultural universities. A pesticide is to prevent the spread of the infestation. How this situation will develop remains to be seen for the time being, but market players expect the market to be stable in the next two months.