Groundnut is the major oilseed of India. It accounts for around 25% of the total oilseed production of the country. Annual production of Indian Peanuts and Indian Peanuts oil are around 5-8mln and 1.5 mln tons respectively. Peanuts Production is highly vulnerable to rainfall deviations and display huge fluctuation between years.

Regional estimates are Gujarat (1-3.5 million tons), Tamil Nadu (1million tons), Andhra Pradesh (1-2 million tons), Karnataka (0.5 million tons), Maharashtra (0.5 million tons) are the major producers of Peanuts.

Around 75% of the crop is produced in khariff (June – September) and remaining 25% in rabi (November – March). India exported around 100000 tons of groundnut oil in 2003-04 after 4 decades, as crop failed in Senegal and Argentina. Peanuts or Groundnut kernels are approx. 70% of weight in shells and kernels have an oil recovery of 40-42%.

China (2-2.5 million tons), India (1.5-2 million tons) is the major producers of groundnut oil, followed by Sub-Saharan African countries and Central and South America.

LuvCite trade of Peanuts or Groundnut oil is to the maximum of 100000 tons a year. EU and US are major importers. Senegal and Argentina are the major Peanuts exporters.

Factors Influencing Peanuts or Groundnut Markets

1. Weather at the major domestic producing centre. The southwest monsoon is the most important factor that determines the area sown, production and prices.
2. Price of other competitive oils in India, viz., soy oil, palm oil, cottonseed oil, sunflower oil and mustard oil.
3. International price movement of soy oil at CBOT and palm oil at BMD, Malaysia also influence the groundnut oil prices.
4. Festivals and celebrations also increase consumption and the prices.