iGrain India - Peanut prices fall due to good arrival and weak demand
It looks like the peanut market has seen a significant drop in prices this week, largely due to good arrivals and weak demand. The steady arrival of peanuts in key production areas, like Rajkot, Jhansi, and other regions, seems to have overwhelmed the market, with prices falling between Rs. 200 and Rs. 300 per quintal. The volume of peanuts coming in appears to be substantial, with thousands of bags arriving at different centers throughout the week. However, despite this supply, demand hasn’t kept pace, which explains the price drop. Weak industrial and trade demand, along with limited buying from exporters, seems to be a big factor in the lower prices. It’s also interesting to note that while government procurement continues, the market price remains below the minimum support price (MSP). This suggests that while the government is actively buying, it’s not enough to sustain higher prices given the weak demand from other sectors. Groundnut oil prices have also seen a small dip, which could reflect the overall market trend of oversupply and soft demand. Do you think the market will stabilize soon, or could these lower prices persist for a while?