Groundnut Farmers Selling Produce in APMCs Instead of State Government Designated Offices

Gujarat's groundnut cultivators are liking to trade their produce in the Agriculture Produce Market Committees (APMCs) also known as mandis as opposed to offering it to the state government designated offices as they are getting exorbitant prices for their yield contrasted with Minimum Support Price (MSP) offered by the state agencies. 

Prior this month, more than 4.7 lakh cultivators had shown their interest in selling their produce at MSP (1055 Rupees) to the state government delegated offices namely, Gujarat Civil Supply Corporation (GSCS). But, as of now not many farmers are coming up with their groundnut produce at the various allotted centers of GSCS. More than 140 procurement centers are established all over the state in an effort to fully accommodate mass acquisition of groundnuts. 

GSCS reached out to more than 8000 farmers via SMS requesting the farmers to visit the procurement centers with their yield, however barely 280 to 300 farmers reached the same to sell their produce. The farmers sold almost 5350 quintals of groundnuts which is worth Rupees 282 lakh to GCSC on the first day of procurement," commented by the authorities of GSCS. 

"Groundnut is popular among the exporters as well as oil factories and there is a heavy demand from these markets. As a result of the same the prices for good quality groundnuts in the open market is piercing through the roof at around 1200 rupees per 20 kilos, which is way more than the offered MSP price" said Atul Kamani, leader of Saurashtra APMC brokers' Association. 

Mr. Kamani also said that even the low grade groundnuts which contain high amounts of dampness in its seeds are getting solid prices between Rupees 950 to 1,050 in the open markets. Also the government's allotted centers do not accept groundnut produce that has a dampness or moisture content of more than 8 percent. In such cases farmers are liking to crowd APMCs of the state as opposed to offering it to procurement centers established by GCSC, he added. Farmers with higher supply numbers of groundnuts are straightforwardly offering their yield to exporters to save money on work and transportation costs as exporters are buying the item at the farmer's doorstep.

Average of around 8 lakh sacks of groundnut per day are arriving in the APMCs all over the state.  APMCs located in Rajkot, Gondal, Deesa and Palanpur got more than 1 lakh packs since the recent days. Sources from Gujarat State Agriculture Marketing Corporation confirmed. 

Gujarat is the biggest maker of groundnuts in India. Even though the state saw heavy losses because of extreme rains, the same would cross the previous year's production value of 32 lakh tons during the current Kharif season. Contrasted with a year ago's Kharif planting of 16 lakh hectares, this year planting has gone up significantly to around 21 lakh hectares in the state.