Kishore TannaConvener Groundnut Panel

Indian Oilseeds and Produce Export Promotion Council, Mumbai, India

Enhancing Export of Groundnuts from India

Why Groundnuts?

Utility of Groundnut Crop

o In India, groundnut is not merely an oilseed crop but is also a supplementary food crop and an important export commodity

o Seeds are a wholesome food consumed directly as snacks (boiled, roasted, fried) and in form of paste (peanut butter)

o Groundnut oil is a very good cooking medium and is used for many industrial applications also

o The oil cake and de-oiled cake are used as animal feed stock

o The crop improves soil fertility by fixing atmospheric-nitrogen

o Foliage is utilized as a nutritious fodder for cattle

o Shells are used for making particle boards and briquettes

A very economic source of:

Healthy oil; no trans fat; high monounsaturated fatty acid (MUFA) and polyunsaturated fatty acid (PUFA)

Good quality protein and source of dietary fibre

Vitamins (B group and E)

Minerals (magnesium, phosphorous, potassium, zinc, iron, copper, manganese and selenium)

Nutritive value and health benefits of groundnuts

• Lowers the risks of heart and gallbladder diseases, diabetes,

and colorectal cancer. Helps to lower blood pressure.

• Resveratrol, a potent anti-aging molecule, fights proliferation

of fat cells and improves the uptake of sugar from the blood.

• Peanut phytosterols reduce the blood cholesterol.

Omega-3,

however,

is absent

“Research studies from Harvard and the American Journal of Clinical Nutrition confirm that peanuts have a positive impact on disease prevention and health maintenance. Additionally, plant-based diets promote better health and cause less environmental impact than diets rich in animal-based foods.”

Scientific Report of the 2015 Dietary Guidelines Committee

Groundnuts are the Food of the Future. Here's why.

Groundnut Production and Trade

• Grown in tropics and subtropics between 40°N and 40°S

latitudes in 115 countries

• Valued for its high-oil edible seeds which are the fourth most

important source of edible oil and third most important

source of vegetable protein in the world

• FAO data (average of 2015, -16 and -17), indicates that world

over groundnut is annually cultivated on 27.5 million ha with

a production of 45.5 million tonnes (In-shell) and yield of

1,656 kg/ha. The corresponding figures for India are 5.2

million ha, 7.8 million tonnes (In-shell) and 1499 kg/ha

• Thus India accounts for a share of 19.00% in acreage and

17.14% in production.

Top 10 Producing Countries

Top ten countries

Quantity(‘000 t)

China 11903India 4233USA 2134Nigeria 2416Sudan 826Myanmar 735Argentina 763Senegal 583Indonesia 647Tanzania 550Others 5636Total 30426

G’nut (seed): Production by Countries (‘000 t)

Source: Oil World 2018; values are average of three years (2015-16 to 2017-18)

Groundnut: Major Exporting CountriesTop ten

countriesQuantity

(‘000 t)

Argentina 593

India 578

USA 487

China 377

Brazil 144

Senegal 127

Nicaragua 83

Egypt 29

Myanmar 24

Canada 20

Others 225

Total 2687 (Source: Oil World 2018; values are average of

three years (2015-16 to 2017-18)

Top ten Importers (‘000 t)

Country 17-18 16-17 15-16

EU-28 793 774751

China 290 398 460Indonesia 278 255 175C.I.S 179 188 159Mexico 154 142 129Canada 143 142 135Philippines 90 85 86Vietnam 72 40 148Thailand 65 59 71Algeria 55 60 62Others 534 556 542Total 2654 2699 2718

(Source: Oil World 2018; values are average of

three years (2015-16 to 2017-18)

Groundnut: Major Importing Countries

China and India are the largest consumer as well

as exporters of peanuts accounting for more than 36%

of the global consumption

Argentina dominates the global export scenario

by exporting nearly 80% of its production while the

USA exports about 25% of its production.

The Netherlands, Germany, and the United

Kingdom are the three countries, which offer ample

opportunities to exporters of peanuts in developing

countries

Leading consumers, exporters and potential markets

2016*US$ 2.033 billion

(≈1,972,228 t)

*Source: FAOSTAT

2025 (projected)US$ 2.600 billion

(≈2,600,000 t)

Peanut butter industry will have the

lion’s share

GroundnutsAcreage (million ha):

World: 26.02 India: 5.23 (20.1%)Production (million t pods)

World: 30.42 India: 4.23 (13.9%)Export: (million t kernels)

World 2.69 India: 0.58 (21.6%) Peanut butter (export from India)

2015-16 7634 t

2016-17 8775 t

2017-18 11664 t

Source: MOC/Trade

World vis-à-vis India (avg. of 3 yrs 2015-16 to 17-18)

Groundnut oilProduction (‘000 t)

World 3994 India: 456 (11.64 %)Export: (‘000 t)

World 267.0 India: 18.6 (6.96 %)

Source: Oil World Annual 2019 (values avg. of 3 yrs 2015-16 to 17-18)

India: Export of Groundnut (mostly as kernels)

2017-18 2016-17 2015-16

Quantity (kernels t) 5,03,150 7,25,266 5,42,730

To over 90 countries (2017-18).

The major destinations are:

Indonesia, The Philippines, Vietnam, Malaysia,

Thailand, Algeria, Ukraine, Nepal, Russia, and Iran

For a quantum jump in exports, India must capture EU

markets especially in the Netherlands, Germany, andthe United Kingdom- the big buyers

‘Believe it or not’ of Groundnut Exim Trade

• Although India, with a share of 21.5% in the global exports, is the first/second largest exporter, its share of 6870 tonnes of imports by the Netherlands (3,30,000 tonnes), the single largest importer nation, is negligible (2%)

• Argentina has only 1.3% of the world groundnut acreage and contributes merely 2.5% of the global production, yet with a share of 22.1% it is the largest exporter in the world

• The Netherlands, does not produce any groundnut and is the largest importer (≈330,000 MT) in the world yet it annually re-exports nearly ≈ 45,000 MT of groundnuts i.e. nearly 15% of the total groundnuts imported into its territories

Groundnut in India: Cropping Seasons

Crop season Situation Crop duration Major statesKharifJun/Jul to Sep/Oct

Rain-fed Short/Medium AP, Gujarat, Karnataka, MP, Maharashtra, Rajasthan, TN, UP and WB

Suppl. irrigation

Medium

RabiOct/Nov to Feb/Mar

Irrigated Medium TN, AP, Odisha and WBResidual moisture

Short AP, TN, Karnataka, and Odisha

SummerJan/Feb to Apr/May

Irrigated Short/Medium AP, Gujarat, Maharashtra, Karnataka, Odisha, and TN

SpringL-Feb/E-Mar to Jun/Jul

Irrigated Short UP, Punjab, and WB

Prevalence of Bold and Java Groundnut Varieties Important Growing States of India

Java

Bold

Both

Bold

Java

Season Area Production Yield

(‘000 ha) Share (%) ‘000 t Share (%) (kg/ha)

Kharif 4243.42 84.54 6599.79 81.35 1555

Rabi-plus 775.76 15.46 1512.82 18.65 1950

Total 5019.18 100.00 8112.61 100.00 1616

Source: Department of Economics and Statistics, GOI

All-India Normal Area, Production and Yield of

Groundnut (Average of 2013-14 to 2017-18)

• Kharif crop is by and large rain dependent and hence the yields vary significantly from year to year

• Rabi, summer and spring crops are raised under assured irrigation and the yields are high and quite stable

All-season state-wise

APY (average of five

years 2012-13 to

2016-17)

State Area(‘000 ha)

Production Yield

(‘000 t) (%) (kg/ha)Gujarat 1540 2838 39.4 1842Andhra Pradesh 999 712 9.9 712Karnataka 627 455 6.3 726Rajasthan 487 944 13.1 1938Tamil Nadu 328 821 11.4 2503Maharashtra 315 362 5.0 1149Madhya Pradesh 227 343 4.8 1512Telangana 169 307 4.3 1813Uttar Pradesh 96 83 1.1 864West Bengal 77 183 2.5 2381Odisha 54 68 0.9 1261Others 67 85 1.7 -All India 4986 7201 100.0 1444Source: DES, GOI

Indian groundnut varietiesMore than 210 notified varieties but only about 50 are in the

seed chain (Breeder Foundation Certified)

No GM variety or hybrid

Two high oleic varieties (‘Girnar 4’ & ‘Girnar 5’) are in the offing

Bold seed varieties: B 95 (CPO 31-32); AK-303 (CPO 34-36); M-

335, TG-1, BAU 13 and Mallika (CPO 37-41)

Breeder seed production of more than ten year old varieties to

be discontinued and now breeder seed of only 38 varieties will

be produced (22 are Spanish, 10 are Virginia bunch, and 6 are

Virginia runner)

The old varieties popular among farmers/exporters are to soon

phased out in the coming years.

The Kharif crop: the major constraints• Uncertainty of rain fall interferes with planting and

scheduling of other agricultural operations

• Farmers often miss the best sowing and harvesting time window due to early season heavy rains, delayed rains, or end-of-the-season rains

• The crops very often suffer drought due to protracted spell of non-rainy days in critical stages of crop

• Erosion of quality occurs due to untimely rains during the post-harvest drying and curing period

• Owing to small and marginal farm holdings, the farmers are deprived of the advantages of the economy of scale

India: New Agriculture Export Policy-2018

V I S I O N

“Harness export potential of Indian agriculture, through suitable policy instruments, to make India global power in agriculture and raise farmers income.”

Agriculture Export Policy-2018-Salient Features

• No restriction on account of minimum export price

• No restriction on even if there is no domestic surplus

• Transformation from an exporter of raw commodity to an exporter of value-added products

• Official recognition of clusters and development of infrastructure (warehouses, pack houses, labs etc.) in clusters

• Drastic reduction in number regulatory bodies and revamping Mandi Act.

• No restriction on import for value addition based re-export

• A greater role for the State Governments with financial support from the Central Government

The Year 2018

‘The Contract Farming Act 2018’

and the new

‘Agriculture Export Policy-2018’

have jointly

created a highly conducive policy

regime for enhancing export and also

encouraging import for value addition

based re-export

Interventions for Enhancing Profitability of Groundnut Crop through Improvement in Yield and Quality

• Formation of districts clusters for organizing export oriented production and creation of infrastructure

• Establishment of block/district level Farmer Producer Companies (FPCs) / Farmer Producer Organizations (FPOs) in notified clusters to act as facilitators

• FPC/FPO to mediate

Transfer of location specific Good Agricultural Practices (GAP) particularly management of rain- and other-water resources

Procurement of farmers’ produce and its primary processing, proper storage and disposal

Establishment of seed banks for easy availability of quality seeds

West Gujarat Rajkot, Junagadh, Dwarka,

Amreli, Jamnagar, Porbandar and

Gir Somanath, Kutch

Maharashtra Kolhapur, Sangli and Satara

North Rajasthan Bikner, Jodhpur, Churu, Jaipur

and Hanumangrh

South Andhra

Pradesh

Ananatpur, Chitoor, Kurnool and

YSR Kadappa

Karnataka Chitrdurga, Tumkuru, Bellari,

Gadag and Dharwad

Tamil Nadu Thiruvannmalai, Vellore and

Villupuram

Central Madhya

Pradesh

Shivpuri, Tikamgarh and

Chattarpur

Potential districts for

cluster formation

for organizing

export-oriented

production

Dealing with Technical Barriers to Trade (Export of Groundnut)

• EU countries need groundnuts with aflatoxin B1 load not more than 2 ppb. Can be managed with GAP and GMP

• Eurasian countries need the groundnut seeds from the

crops grown in Striga free regions.

Striga asiatica

The weed is a partial root parasite of crops like sorghum,

maize, pearl millet, finger millet, little millets, sugarcane

rice etc.

The weed, however, fails to establish itself in groundnut,

sesame and soybean fields as the seedlings die shortly

after germination due to allelopathy.

Some effective interventions for management of aflatoxincontamination

• Applying non-toxigenic strains of Aspergillus

flavus- in the fields for checking invasion by

toxigenic fungus

• Protection of crop from protracted drought

and of produce from unseasonal rains during

post harvest drying and curing of the

harvested produce

• Storing produce in dry, cool and well

ventilated structures to prevent build up of

fungus during storage

• Improvement in rejection efficiency of sorting

machines

Better Utilization of Installed Capacity of Processing Units

AS many as 87 decorticating-cum-grading units and seven stand alone grading units are registered with APEDA for export-oriented processing of groundnut in India

After peak season of operation, the processing machinery remains under or un utilized for months together

The units may be allowed to import pods or kernels and re-export the same after value-addition

Bringing in an exporter friendly Standard Input and Output Norms (SION) would go a long way in complete utilization of installed capacity and improving economics of processing

Some R & D Issues• Development of designer seeds with

improved fatty acid composition and lower level of toxic substances

• Identification and development of high yielding export-worthy varieties

• Development of protocols for short-term storage (RH, temperature, ventilation)

• Development of sorting machines with enhanced efficiency

• Development of economic technology for detoxification of oilseed meals

• Identification of good packaging material

The Agriculture Export Policy-2018

and

the Contract Farming Act-2018

have jointly opened up avenues for the State

Governments and the Exporters to innovate and

collaborate to promote export-oriented farming of

groundnut in India. This would lead to increase in

farmers’ income on account of improvement in yield

and at the same time help exporters procure their

raw material on competitive prices.

The onus now lies on the State Governments and

Export Oriented Processors and Merchant exporters