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Guj’s groundnut exports likely to hit five-yr low

AHMEDABAD: Groundnut exports from Gujarat may decline to a Five-year low in 2018-19, owing to lower manufacturing. The state’s exports of the oilseed can be 2.Five lakh tonnes in 2018-19, the lowest since 2013-14.

Groundnut exports from Gujarat — the most important manufacturer and exporter of the commodity — was 1.79 lakh tonnes, price Rs 1,224 crore, in April to November of the 2018-19 fiscal, says the Agricultural and Processed Food Products Export Development Authority (APEDA), mentioning knowledge from the Directorate General of Commercial Intelligence and Statistics (DGCIS).

“Exports will have to achieve 2.50 lakh tonnes by way of the end of the current fiscal, which may be very low,” stated Sameer Shah, president of the Saurashtra Oil Millers Association (SOMA).

Gujarat’s groundnut exports have been at three.22 lakh tonnes (valued at Rs 2,115 crore) in 2017-18. The lowered exports from Gujarat are expected to lower India’s total groundnut exports in 2018-19 too. The first 8 months of the current fiscal saw groundnut exports from the rustic stand at three.10 lakh tonnes, against Five.04 lakh tonnes in all of 2017-18.

A drastic fall in groundnut manufacturing locally and their less competitiveness in the world marketplace are the principle components answerable for the lower exports this fiscal.

The Solvent Extractors’ Association of India (SEA) pegged the kharif groundnut manufacturing in Gujarat at 15.95 lakh tonnes in 2018-19, almost half the 31.45 lakh tonnes produced in 2017-18.

“Some African international locations corresponding to Sudan and Senegal are very aggressive in the world marketplace and their exports have higher during the last two years. This has also affected our prospects,” Shah added.

To supply remunerative prices to farmers, the Gujarat executive is purchasing groundnut at a minimum beef up price (MSP) of Rs 1,000 in keeping with 20 kg, whilst marketplace prices are between Rs 680 to Rs 800 in keeping with 20 kg. “As a result, a number of farmers aren't promoting their produce in the open marketplace,” added an industry participant.

“Groundnut exports may get a spice up if its exports get incentives under the Merchandise Exports from India Scheme (MEIS), which gives Five% to 10% incentives on agricultural commodities. However, groundnut at present isn't getting any incentive under the scheme,” the SOMA president added.

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