200 peanut processors down shutters in Junagadh, Amreli

RAJKOT: High minimal give a boost to value (MSP) for groundnut coupled with low production has sounded a demise knell for just about 200 peanut processing units, maximum of them situated in Junagadh and Amreli districts.
On Friday, around 60 units in Amreli seen the final working day whilst those in Junagadh, which is the largest centre for peanut processing, are working on a 20% capacity. The units are unable to obtain the uncooked subject material (groundnut) for processing as farmers are unwilling to sell their produce to them at the marketplace value, which is relatively less than MSP of Rs 1,000 in step with 20 kg. The marketplace costs levels between Rs 700 to Rs 800 in step with 20 kg.

The closure of processing units has affected the direct employment of nearly 7,000 people and not directly of around 10,000 people.

Around 80% of the processed peanuts are exported whilst the remaining are ate up domestically.

Jeetu Dudhatra, president of Junagadh Peanut Processing Units Association told TOI: “Just few units are working that too at not up to 50% capacity due to loss of uncooked subject material. The executive is shopping groundnut at high value and that stock is blocked in warehouses. Due to MSP, the prices are very high. We can’t find the money for to shop for from the marketplace as a result of tricky pageant within the world marketplace which hits our margins.”

The Solvent Extractors Association of India (SEA) has already pegged the kharif groundnut production in Gujarat at 15.95 lakh tonnes, which is almost half of final 12 months’s harvest of 31.45 lakh tonnes. Dudhatra stated, “Last 12 months, executive additionally procured the groundnut at high value but the production used to be high and subsequently there used to be stock to be had in the market. This 12 months production is very less due to inadequate rains.”

Groundnut from in every single place Gujarat is processed in Junagadh and Amreli. If the crop in neighbouring states like Maharashtra and Rajasthan is good, it is also despatched right here for processing. According to rough estimates, the processing units in Junagadh and Amreli process 3 lakh tonnes groundnut in one season of 7-Eight months. This 12 months, the number has come right down to 75,000 to 90,000 tonnes.


Kumud Gajera, who has a processing unit in Junagadh’s GIDC-2 stated, “The executive will have to deposit the variation of MSP and marketplace value in farmers’ account and let them sell within the open marketplace. It will be good for our trade and help exports. The stock procured will be offered subsequent 12 months and this impacts the quality.”


Sanjay Patel, a processing unit owner in Amreli, stated: “The processing season is usually six to seven months, but this 12 months we have uncooked subject material is unavailable.”


Gujarat used to be the most important exporter of groundnut according to Agriculture and Processed Food Products Export Development Authority (APEDA) in 2017-18. The state had exported three.22 lakh tonnes, which is expected to be around 2.five lakh tonnes this 12 months.


200 peanut processors down shutters in Junagadh, Amreli 200 peanut processors down shutters in Junagadh, Amreli Reviewed by Kailash on February 09, 2019 Rating: 5
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