Indian groundnuts gaining overseas markets on robust SE Asia demand
After hitting a new high in FY2023, India’s peanut exports are off to a good start in the current FY thanks to strong demand from South Asian countries, major buyers. A lower crop is seen in Argentina helping Indian exporters gain markets abroad, supported by the increased domestic production.
Peanut shipments posted 54 percent growth in dollar terms to $163 million during the April-May period of the current fiscal year, compared to $106 million in the previous fiscal year. In rupee terms, shipments were up 65 percent at 1,338 crore (813 crores), while volumes were up 46 percent at 1.22 lakh tonnes (84,114 tons), according to the latest data from APEDA.
In its latest oilseed outlook for July, the USDA forecast Indian peanut exports for the 2022-23 marketing year ending September at 8.5 thousand tons, up from 7.5 tons a year earlier. For Argentina, it trimmed the forecast for peanut exports at 7 thousand tons from 8.25 thousand tons in the previous year on a lower crop for the South American producer.
According to APEDA data, during FY23, peanut exports touched a new high of $831.6 million, up 32 percent from $629.27 million in the previous fiscal year. In rupee terms, exports increased by 43 per cent at ₹6,735 crore (₹4,697 crore). Volumes in FY23 increased by 30 percent to 6.68 thousand tons (5.14 thousand tons).
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 major buyers include the UAE, Bangladesh, Iran, China, Afghanistan, Russia and Nepal.
“Indian groundnuts, mainly consumed as table nuts, are in great demand abroad. Over the years, exports as well as domestic consumption have gone up,” said PV Mehta, Executive Director, Solvent Extractors of India, the Supreme Authority for Edible Oils. Demand for Indian nuts rises when yields are low in other exporting countries such as Argentina and Senegal.
From a low of $473m in 2018-19, Indian bean exports have rebounded to reach a new high in 2022-23. The previous spike in dollar terms was in 2016-2017, when shipments touched $811 million, when volumes peaked at 7.25 thousand tons. India’s groundnut production for 2022-23 is seen at a record 102.82 thousand tons, according to the third advance estimate, compared to 101.35 thousand tons for the previous year.