Groundnut exports from India A birds eye view
Groundnut exports from India A bird’s eye view Kishore Tanna Convener, Groundnut Panel and Director INDIAN OILSEEDS AND PRODUCE EXPORT PROMOTION COUNCIL
The Global Scenario • Groundnut is an important oilseed and supplementary food crop of the world. • It’s commercially grown between 40°N and 40°S latitude. • It’s the fourth most important source of edible oil and the third most important source of vegetable protein. • Globally the crop is raised on 25. 82 million hectares with a total production of 43. 32 million metric tonnes (In-shell). The average productivity is 1671 kg/ha (In-shell) • The annual global export of groundnuts is 2. 76 million tonnes (kernels).
The top five Producers Exporters Importers China India Argentina Netherlands Nigeria U. S. A. Indonesia USA China Vietnam Argentina Brazil Canada
India vis-a-vis other global players
Top 10: Acreage (ha) and production (MT) Share (%) Country China India Nigeria USA Sudan Tanzania Argentina Burma Chad Senegal Others World Acreage Share Production Share 4, 625, 494 17. 4 16, 550, 213 37. 7 4, 685, 000 17. 7 6, 557, 000 14. 9 2, 770, 100 10. 4 3, 413, 100 7. 8 535, 200 2. 0 2, 353, 540 5. 4 2, 104, 000 7. 9 1, 767, 000 4. 0 1, 619, 500 6. 1 1, 635, 335 3. 7 409, 312 1. 5 1, 165, 924 2. 7 484, 000 1. 8 865, 900 2. 0 774, 604 2. 9 791, 088 1. 8 878, 659 3. 3 669, 329 1. 5 7, 655, 791 29 8, 146, 936 19 26, 541, 660 100 43, 915, 365 100 Source: FAOSTAT 2017 Yield 3, 578 1, 400 1, 232 4, 398 840 1, 010 2, 849 1, 789 1, 021 762 1, 655
Top Ten Groundnut Producing Countries
Top Exporting Countries (Thousand tons) Country 2016/17 2015/16 Share (%) India 760 551 27. 53 Argentina 630 704 22. 82 USA 500 528 18. 11 China 340 290 12. 31 Brazil 107 121 3. 88 Nicaragua 85 78 3. 08 Senegal 62 142 2. 25 Other 277 278 10. 03 Total 2761 2692 100 Source: Oil World 2017 (Oct-Sept) Ø India is largest exporter of groundnuts in the world with a share of about 28% in the world trade. Ø Argentina and USA secured second and third position respectively in exports of Groundnut during 2016 -17.
Top Ten Importing Countries (Thousand tons) Country China Netherlands Indonesia Vietnam Canada Germany Russia UK Phillipines Thailand Others Total 2016/17 450 318 190 138 137 120 129 85 82 69 1037 2755 2015/16 460 316 175 134 135 126 117 81 86 71 1001 2702 Share 16. 33 11. 54 6. 90 5. 01 4. 97 4. 36 4. 68 3. 09 2. 98 2. 50 37. 64 100. 00 Source: Oil World 2017 (Oct-Sept) China was the largest importer of groundnut with a share of 17% followed by EU with Netherlands and Germany together accounting for a share of about 16%. Indonesia has about 7% share.
India's Export of Groundnut oil (Quantity in tons) 2017 -18 Year 2016 -17 2015 -16 2014 -15 2013 -14 (Apr-Jul) Quantity 11583 6586 31122 2706 6483 Source: DGCIS April-March
India's Export of Groundnuts Quantity ton) • Indian exports Rank Country 2016 -17 2015 -16 Share (%) picked up due to 1 Indonesia 186203 173966 25. 67 resumption of exports to Vietnam 22. 01 2 Vietnam 159625 18418 and price 8. 68 3 Malaysia 62963 72211 competitiveness of 7. 01 4 Philippines 50834 50699 Indian groundnut. 6. 08 5 Thailand 44125 63048 • During April-August, 4. 92 35655 37366 6 Pakistan 2017 India 3. 12 22629 15791 7 China exported 1, 57, 329 2. 90 21018 3853 8 Russia tons of groundnut 2. 40 17384 3705 9 Algeria in comparison to 2. 27 981 10 South Africa 16432 2, 103 tons Others 108398 102692 14. 95 during same period Total 725266 542730 100. 00 last year. Source: DGCIS
Current major destinations and major importing EU nations Major importers • The Netherlands • Germany • UK European • Spain Union • Italy Southeast Asia Major destinations • Indonesia • Vietnam • Malaysia • The Philippines • Thailand
India-Groundnut Balance Sheet (2016 -17) Item Crop in shell Kernels @72. 50% Less Sowing (kernel) Exports (kernel) Direct consumption (kernel) Sub Total Marketable surplus (kernel for crushing) Kharif 53. 75 39. 00 Quantity Lakh ton Rabi Total 15. 45 69. 20 11. 20 50. 20 7. 50 4. 70 11. 30 23. 50 1. 00 1. 80 3. 80 6. 60 8. 50 6. 50 15. 10 30. 10 15. 50 4. 60 20. 10
Where are prices headed ? • Short crop in India • Good crop in other exporting countries like USA, Argentina and China • Emergence of other competing African origins and depreciation of their currency • Appreciation of 4. 5% in Indian rupee (Rs. 64. 07 per USD in August, 2017 VS Rs. 67. 07 in August, 2016)
The paradoxes Although India is the largest exporter of groundnut but its share in the imports by the single largest importing nation viz. , the Netherlands is negligible. Argentina has only 1. 5% of the world groundnut acreage but contributes 2. 7% of the global production and yet it is the second largest exporter of groundnut in the world (share of 23%).
Strengths of Indian Groundnuts • Largest acreage (5 6 million ha) and the second largest production in the world • Spanish, bold and Valencia all types are grown Spanish Bold Valencia
Strengths (contd. ) • Drying and curing in natural conditions preserves the flavour imparting substances • No GM variety is cultivated in India
Strengths (contd. ) • The export helps stabilize domestic edible oil supply. • Cheaper edible oils (mainly palm oil) are imported in a much larger quantity than being exported in form of kernels. • Groundnut crop plays a crucial role in bridging the edible oil deficit in the country
Strengths (contd. ) • Well established state of the art processing facilities
Rainfed crop- the Achilles' heel (weaknesses) • Kharif (80%) crop is by and large rainfed (yield varies widely over the years)
Weaknesses (contd. ) • Mid or end of the season drought often mars the crop prospects
Weaknesses (contd. ) • Post harvest unseasonal rains enhance the susceptibility to invasion by Aspergillus flavus
Weaknesses (contd. ) • Cultivation on marginal and small holdings make it difficult to source in shells of uniform genetic and agronomic background • Multitude of crop varieties ( 200) enhances chances of varietal mixtures entering the seed chain
Opportunities • Wide spread adoption of BBF for enhancing productivity Broad bed and furrow (BBF): a proven technology to tide over short spell droughts and also excessive rains
Opportunities (contd. ) • Identification of export worthy varieties through focussed research • Formation of farmers’ co operatives to source raw material of uniform genetic and agronomic background • National legislation for contract farming to safeguard interests of all the stakeholders
Opportunities (contd. ) • Great potential for production and export of organic groundnut • Processing of imported lots during the lean period to maximise utilization of the installed capacity SION norms to be in place soon • EU likely to raise ML for aflatoxin from 2 to 10 ppb opening the floodgates for Indian exporters
Opportunities (contd. ) A concerted effort by all the stakeholders will for sure double the exports in the coming years NOW THEN
Challenges and threats • Aflatoxin contamination • Salomnella spp, Escherichia coli contamination • Pesticide residues above MRL • Seeds of noxious weeds (Striga spp. ) • Early release of high oleic varieties in competing countries • Spread of white grub in Gujarat
R & D Needs • Development of high oleic varieties • Development of varieties highly resistant to Aspergillus flavus • Operating procedures for transport and storage • Machinery improvement- Laser/colour • Warehouse design for storage at controlled temperatures • Warehouse design to facilitate fumigation of market lots • Improvement in efficiency of colour and laser sorting • Packaging material for storage and shipment • Data on changes in moisture and temperature of the cargo during voyage
FUTURE PROSPECTS • Increase in production through better crop management • Large-scale production of in-shells of uniform genetic and agronomic back ground • Availability of high-oleic varieties • Production of value-added products for export • Efficient utilization of installed capacity by processing imported raw material • Improved machinery to avoid undesirable rejections • Improved warehousing facilities
State-wise Normal Area, Production and Yield of Groundnut in major growing states (Average of 2010 -11 to 2014 -15) Area Production Yield State/ UT Season ('000 ha) ('000 tonnes) (kg/ha) Andhra Pradesh Kharif 1056. 8 553. 0 523 Rabi 97. 3 216. 0 2219 Total 1154. 1 768. 9 666 Gujarat Kharif 1491. 6 2740. 9 1838 Rabi 112. 6 214. 4 1904 Total 1604. 2 2955. 3 1842 Karnataka Kharif 505. 0 373. 6 740 Rabi 179. 6 164. 2 914 Total 684. 6 537. 8 786 Maharashtra Kharif 247. 8 277. 6 1120 Rabi 66. 6 96. 0 1441 Total 314. 4 373. 6 1188 Rajasthan Kharif 424. 4 802. 0 1890 Rabi 1. 4 2. 8 2034 Total 425. 3 803. 2 1889 Tamil Nadu Kharif 233. 5 489. 2 2095 Rabi 123. 1 427. 2 3471 Total 356. 5 916. 4 2570 All India Kharif 4376. 7 5789. 3 1323 Rabi 846. 2 1618. 5 1913 Total 5222. 9 7407. 8 1418 Source: DES, GOI
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