Indian peanuts gain overseas markets on strong demand from Southeast Asia

After climbing a new record in fiscal 2023, Indian peanut exports are off to a good start in the current fiscal year on the back of strong demand from South Asian countries, the main buyers. A smaller crop in Argentina is seen to help Indian exporters win markets abroad, supported by growing domestic production.

Peanut shipments have registered a growth of 54 percent in dollar terms to $163 million during April-May of the current fiscal year, compared to $106 million in the same period of the previous fiscal year. In rupee terms, shipments rose 65% to ₹1,338 crore (₹813 crore), while volumes rose 46% to 1.22 lakh tons (84,114 tons), according to the latest data. of APEDA.

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The US Department of Agriculture, in its latest July oilseeds outlook, projected India’s groundnut exports for the 2022-23 marketing year ending September at 8.5 lakh tonnes, up from 7.5 lakh tons from the previous year. For Argentina, it has lowered the outlook for groundnut exports to 7 lakh tons from 8.25 lakh tons a year earlier due to a smaller crop at the South American producer.

According to APEDA data, during FY23, Indian groundnut exports reached a new high of $831.6 million, up 32% from $629.27 million in the previous fiscal year. In rupee terms, exports rose 43 percent to ₹6,735 crore (₹4,697 crore). Volumes during FY23 increased 30% to 6.68 lakh tons (5.14 lakh tons).

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Indonesia was the largest buyer of Indian peanuts during FY23, accounting for more than a third of shipments, followed by Vietnam, the Philippines, Malaysia and Thailand, among others. Other big buyers include the United Arab Emirates, Bangladesh, Iran, China, Afghanistan, Russia and Nepal.

“Indian groundnuts, which are mainly eaten as table nuts, are in high demand abroad. Over the years, exports are increasing and so is domestic consumption,” said BV Mehta, Executive Director of the Solvent Extractors Association of India, the leading body for edible oils. Demand for Indian groundnuts increases when the harvest is low in other exporting countries such as Argentina and Senegal, Mehta added.

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From a low of $473 million in 2018-19, India’s peanut exports have rebounded to hit a new high in 2022-23. The previous high in terms of dollar value was in 2016-17, when shipments reached $811 million, when volumes peaked at 7.25 lakh tons. India’s groundnut production for 2022-23 is estimated at a record 102.82 lakh tonnes, according to the third advance estimates, up from 101.35 lakh tonnes a year earlier.