GROUNDNUT – Indian Food Search

Groundnut (or peanut) is India’s second-largest oilseed crop after soybean. As of late February 2026, the industry is seeing high momentum due to increased government support and a global shift toward healthy, high-oleic oils.

1. Production & Leading States (2025–26)

India is the world’s second-largest producer of groundnut, following China. The 2025–26 Kharif (monsoon) season saw a significant jump in cultivation as farmers shifted away from less profitable cotton.

National Production: Estimated at 11.1 million metric tons for the 2025–26 Kharif season, up from 10.4 million tons last year.
Top Producer: Gujarat remains the powerhouse, contributing over 55% of India’s output (~6.6 million tons).
Other Key States: Rajasthan (2.2M tons), Madhya Pradesh, and Tamil Nadu follow.
Summer Sowing (Feb 2026): As of mid-February 2026, summer groundnut sowing has begun in Gujarat, though it is currently at a slower pace (approx. 944 hectares) compared to last year.

2. 2026 Pricing & Government Support

To protect farmers from price drops caused by high production, the Indian government has significantly increased support levels.

MSP for 2025–26: Fixed at ₹7,263 per quintal (an increase of ₹480 over the previous year).
Market Reality (Feb 2026): In major mandis like Rajkot, prices have been volatile. While the “modal” price has occasionally touched ₹8,000 for high quality, average arrivals are trading between ₹5,000 and ₹5,500, prompting the government to initiate massive procurement via NAFED to support the MSP.

3. High-Oleic “Super” Varieties

The biggest technological trend in 2026 is the adoption of High-Oleic Groundnuts, which have a chemical profile similar to olive oil.

Girnar 4 & 5: These “heart-healthy” varieties are gaining ground because they have a longer shelf life (up to 6 months) and are preferred by the confectionery and peanut butter industries.
Kadri Lepakshi (K6): Highly popular in Andhra Pradesh and Karnataka for its tall growth and high yield (up to 22 quintals/ha).
GG40 (ICGV 16668): A new high-yielding, drought-tolerant Spanish-type variety released for national cultivation in early 2026, specifically targeting states like Rajasthan and Gujarat.

4. Exports & Trade Dynamics

India is a dominant player in the global groundnut trade, but 2026 has brought unique challenges:

The Indonesia Halt: In late 2025, Indonesia (India’s largest groundnut buyer) temporarily paused imports due to concerns over Aflatoxin (a toxin produced by certain molds).
The China Surge: Conversely, Indian exports to China surged by over 2,000% recently, as Indian groundnuts filled the gap left by a decline in U.S. exports.
Standard Update: As of November 1, 2025, India implemented stricter quality and safety standards for all exported peanuts to ensure better global competitiveness in 2026.

5. Summary: 2026 Market Outlook

Metric	2026 Status
National Yield (Avg)	1.33 Metric Tons per Hectare
Domestic Consumption	Rising (~49M Tons globally)
MSP (2025-26)	₹7,263 / quintal
Top Use Case	Edible Oil (92% of Asian market) & Confectionery

In India, groundnut is a cornerstone of the oilseed sector, often dubbed the “King of Oilseeds.” As of February 27, 2026, the industry is characterized by expanding acreage and a strategic shift in international trade.

1. Production Status (2025–26)

Following a favorable monsoon in 2025, India has seen a significant boost in groundnut cultivation as farmers moved away from cotton due to better price realizations.

National Production: Estimated at 7.5 million metric tons (MMT) for the current marketing year, a 2% increase over the previous year.
Cultivation Area: Area planted reached 5.62 million hectares, driven by timely rainfall during the sowing season.
Yield: Productivity remains stable at around 1.33 MT per hectare.

2. Leading States (2026)

Groundnut cultivation is concentrated in the western and southern belts of India.

State	2026 Production Profile
Gujarat	The Unchallenged Leader: Accounts for nearly 55–60% of India’s output. The Saurashtra and Kutch regions are the primary hubs.
Rajasthan	The second-largest producer; districts like Bikaner and Jodhpur have seen massive growth due to improved irrigation.
Madhya Pradesh	Noted for high-quality bold varieties, contributing roughly 10% to the national pool.
Tamil Nadu & Andhra Pradesh	Major centers for the Rabi/Summer crop, focusing on food-grade and confectionery peanuts.

3. Prices & Government Support (2025–26)

To support the increase in production, the government has provided a strong price floor.

Minimum Support Price (MSP): For the 2025–26 season, the MSP is set at ₹7,263 per quintal, an increase of ₹480 from the previous year.
Current Market Price: As of late February 2026, mandi prices in Gujarat (Rajkot/Jamnagar) are trading between ₹6,000 and ₹7,500, with high-quality “Bold” varieties often exceeding the MSP.
Procurement: Government agencies (NAFED) are actively buying stocks in Gujarat and Rajasthan to prevent prices from crashing during the peak arrival season.

4. Trade & Global Dynamics

2026 has been a landmark year for Indian groundnut exports:

Export Growth: Indian exports are projected to rise by 16% to 928,000 metric tons.
The “China Factor”: Indian peanut exports to China surged by over 2,000% recently, as India filled the supply gap left by lower U.S. exports.
New Standards: Stricter quality and safety regulations (effective Nov 2025) have improved India’s reputation in high-value markets like the UK and EU, following the India-UK Free Trade Agreement signed in May 2025.

5. Current Challenges & Trends

Climate Stress: While the overall monsoon was good, some regions in Gujarat faced a mid-season dry spell followed by excessive late rains, which slightly lowered local productivity.
Shift to “Super Varieties”: There is a massive 2026 push for High-Oleic varieties (like Girnar 4 and 5). These “heart-healthy” nuts have a longer shelf life and are in high demand for making peanut butter.
Digital Mandis: More farmers in 2026 are using the e-NAM platform for real-time price discovery, reducing their dependence on local middlemen.