India’s peanut market has been remarkably steady in recent weeks, and that’s not by chance. The National Agricultural Cooperative Marketing Federation of India (NAFED) has stepped in, releasing large volumes of stock into the market and easing pressure on prices that might have otherwise surged.
175,000 Tonnes Released – Prices Stay Flat
Between June 12 and July 12, NAFED sold approximately 175,000 metric tonnes of peanuts across India. This move, part of a broader effort to stabilize the market, has prevented the kind of sharp price increases that typically follow a seasonal spike in demand.
In fact, from late April to early June, prices dropped by 7-8%, despite increased buying interest during the festive period. NAFED’s intervention is largely responsible for keeping the market balanced during this time.
Sowing Up in Key Regions
In Gujarat, India’s top peanut-producing state, peanut sowing is up by an estimated 20–25% compared to last year. Combined with a favorable monsoon and sufficient soil moisture levels, this is setting the stage for a bumper crop later in the year.
The domestic supply outlook is strong: India is expected to hold around 1.1 million tonnes in total stock, which further contributes to market stability.
Imports From Indonesia on the Rise
At the same time, Indian importers have shown increasing interest in Java-grade peanuts from Indonesia, likely as a way to diversify supply and ensure availability during periods of local uncertainty. This cross-border trade adds another layer of competition, keeping domestic prices in check.
Indonesia, for its part, imported USD 259.9 million worth of Indian peanuts in 2023, highlighting the strong two-way trade relationship between the two markets.
What Buyers Should Watch
- Price levels: As of mid-July, average prices are holding around INR 6,450-6,500 per quintal (~USD 645-650 per tonne).
- NAFED stock strategy: While sales have slowed down in some states like Uttar Pradesh, NAFED is reportedly aiming to buy another 50,000-60,000 tonnes, which could affect supply dynamics ahead.
- Market timing: With the new crop expected later this year, there may be a narrow window for opportunistic purchasing before new stock hits the market.
This period of price stability offers a rare moment to plan with fewer surprises. With NAFED managing stock releases carefully and international supply from places like Indonesia offering flexibility, the peanut market remains well-supported, for now.