Groundnut prices decline on higher supply

Rajkot, May 30 | Updated: May 31 2007, 05:30am hrs
Arrivals of summer season groundnuts have increased to 1 lakh bags per day, which has led to decline in the prices of both groundnut and HPS groundnuts. Not only that, a weak trend has also been witnessed in groundnut oil. The prices of groundnut oil have surged to Rs 695 last week.

Sources in the commodities market informed that groundnut production during summer is expected to be around 2.25 lakh tonne and arrivals are likely to last till the end of June. Further onset of monsoon in the Southern India has also forced stockists to sell groundnut stocks lying with them. All this has led to subdued trend in groundnut and groundnut oil markets and prices have started moving southwards due to increased arrivals. Earlier prices of groundnut were ruling at Rs 11,000 to Rs 11,500 per quintal, which has declinedto Rs 10,500 to Rs 11,000 per quintal.