Groundnut exports from India

1. Groundnut exports from India A bird’s eye view Kishore Tanna Convener, Groundnut Panel and Director INDIAN OILSEEDS AND PRODUCE EXPORT PROMOTION COUNCIL

2. 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).

4. India vis-a-vis other global players

5. Top 10: Acreage (ha) and production (MT) Share (%)

6. Top Ten Groundnut Producing Countries

7. Top Exporting Countries • India is largest exporter of groundnuts in the world with a share of about 28% in the world trade. • Argentina and USA secured second and third position respectively in exports of Groundnut during 2016-17.

8. Top Ten Importing Countries 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.

9. India's Export of Groundnut oil

10. India's Export of Groundnuts • Indian exports picked up due to resumption of exports to Vietnam and price competitiveness of Indian groundnut. • During April-August, 2017 India exported 1,57,329 tons of groundnut in comparison to 2,10,103 tons during same period last year.

11. Current major destinations and major importing EU nations • Major importers • The Netherlands • Germany • UK • Spain • Italy European Union Southeast Asia • Major destinations • Indonesia • Vietnam • Malaysia • The Philippines • Thailand

12. India-Groundnut Balance Sheet (2016-17)

13. 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)

14. 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%).

15. 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

16. Strengths (contd.) • Drying and curing in natural conditions preserves the flavour imparting substances • No GM variety is cultivated in India

17. 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

18. Strengths (contd.) • Well established state-of-the-art processing facilities

19. Rainfed crop- the Achilles' heel (weaknesses) • Kharif (80%) crop is by and large rainfed (yield varies widely over the years)

20. Weaknesses (contd.) • Mid- or end-of-the-season drought often mars the crop prospects

21. Weaknesses (contd.) • Post-harvest unseasonal rains enhance the susceptibility to invasion by Aspergillusflavus

22. 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

23. 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

24. 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

25. 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

26. Opportunities (contd.) A concerted effort by all the stakeholders will for sure double the exports in the coming years NOW THEN

27. Challenges and threats • Aflatoxin contamination • Salomnellaspp, 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

28. R & D Needs • Development of high oleic varieties • Development of varieties highly resistant to Aspergillusflavus • 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

29. 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