MUMBAI, 05 Dec (Commoditiescontrol): The groundnut market displayed mixed trends today, reflecting a cautious sentiment among traders and limited buying activity despite reduced arrivals. Following a week of strong trade in groundnut oil, the market experienced softness in prices for lower-quality groundnuts, while high-quality produce maintained stable pricing. Weak demand for groundnut meal and restricted procurement from both private players and government agencies contributed to the subdued market conditions. Traders anticipate a potential price decline in the coming days if the current trends persist.
In Gondal Mandi, new arrivals ranged between 30,000–35,000 bags (1 bag = 35 kg), with trade volume reaching 37,000 bags. Prices for average quality groundnuts were recorded at ₹1,080–₹1,140 per 20 kg, while best quality groundnuts fetched ₹1,095–₹1,215 per 20 kg. Despite decent trade activity, the market lacked significant upward momentum.
Similarly, in Rajkot Mandi, approximately 55,000 bags remained unsold, though trading activity showed some improvement. Average quality groundnuts were priced at ₹910–₹1,190 per 20 kg, while best quality groundnuts traded between ₹885–₹1,210 per 20 kg. Across the Saurashtra region, arrivals were estimated at 50,000 bags, reflecting a steady supply.
In North Gujarat, key markets reported varied trends. Deesa Mandi reported arrivals of 13,130 bags trading in range of ₹1,100–₹1,500 per 20 kg. Patanwada mandi recorded arrival of 16,370 bags while prices moving in the range of ₹980–₹1,340 per 20 kg. Palanpur mandi received approximately 10,167 bags and were priced in the range of ₹1,015–₹1,380 per 20 kg.
The downward pressure on lower-quality groundnuts, with prices softening by ₹10–₹15 per 20 kg, can be attributed to weak demand for groundnut meal. This, coupled with limited government procurement, has kept the market subdued. High-quality groundnuts, however, managed to retain stable prices due to their consistent demand, highlighting a divergence between quality grades.
The reduced arrivals, which typically bolster prices, have not resulted in a significant price hike. This reflects restrained buying activity across the board, as both private traders and government agencies adopt a cautious approach to procurement.
The current market conditions indicate potential price declines in the near term, particularly if buying activity remains limited. Traders are closely monitoring the situation, especially the pace of government procurement and private sector demand. A revival in demand for groundnut meal or increased buying interest could stabilize or even improve prices, particularly for high-quality produce.
In conclusion, while the groundnut market has shown resilience in maintaining stable prices for premium quality, the overall sentiment remains cautious. Market participants continue to navigate the challenges of weak demand, reduced procurement, and fluctuating arrivals, making the coming weeks critical for determining the market's trajectory.
(By Commoditiescontrol Bureau; +91 98201 30172)
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