Outlining the prospects for the year ahead, Groundnut Extractions Export Development Association (Geeda) chairman SB Jhaveri informed the members at its 30th annual general meeting (AGM) that the coming crop year 1999-2000 (November-October) does not look bright for the solvent extraction industry, especially for the large sector concerned with the processing of groundnut oilcakes.

It was feared that a prolonged dry spell in the main groundnut growing areas of Saurashtra and Kutch region in Gujarat had caused irreparable damage to the crop. As against the initial estimates of nearly 2.0 million tonne in shell, anticipation of the expected crop had been down, to less than 1 million tonne in shell.

Crop damage of this magnitude was likely to reduce the availability of raw material for oil mills and in turn thesupplies of expeller oilcake to solvent extraction plants, seriously affecting their ability to sustain the operating scales.

Unfortunately, Andhra Pradesh, Karnataka and Tamil Nadu, also did not hold a promise of even a normal crop, which would have helped to bridge the major deficit in Gujarat, observed Jhaveri.

Prospects of other oilseeds, notably soyabean also seemed to be far from bright as Madhya Pradesh, the main soya growing region faced conditions of moisture stress due to a deficient monsoon.

In spite of the demand side prospects being fairly bright, a reduced availability of groundnut for crushing is expected, which would make a major dent on the supplies, stated Jhaveri.

He called for an imperative need to create a basic framework of trading in groundnut extractions for the indigenous market. The proposed framework would include formulation of a standard trading contract, a grievance redressal mechanism, adherence to quality specifications and delivery schedule on the part of sellers,apart from assured payment by the buyers.

While reviewing the role played by Geeda in the service of the industry and exports, Jhaveri stated that with the growth of domestic demand in tandem with development of poultry, dairy and aqua-culture sectors, the association has now assumed additional responsibility as the nodal agency to service the domestic consumer.