Peanuts: threatening export ban on peanut oil

Mundus-Agri: Rumors of a possible export ban on Indian peanut oil have roiled the market and pushed up China's buying. Some traders, however, doubt whether the ban will ultimately take place.

Traders are worried

As market players had hoped, prices of Indian peanuts have risen slightly from last week. However, a rumor is doing the rounds that have traders very worried: The Indian government is reportedly planning to temporarily ban exports of peanut oil, among other products such as flour and wheat. Increased oil buying had kept traders positive until last week, and the impending export restriction is now hovering over the market like a dark cloud.

New crop arrives gradually.

Despite a lower acreage, market experts expect a similar crop volume as last year. In the Saurashtra region, about 400 bags of the new crop have already arrived on the markets, leading to immediate price declines. China, meanwhile, has significantly increased its imports from India, especially in the wake of the possible export ban. However, some traders believe that the government's decision will ultimately go against the restrictions, as production should be high enough to meet domestic and export demand. The final outcome should be decided in a fortnight at the latest when the new goods arrive on the markets in larger quantities.