The Agriculture Ministry gave approval for implementation of Price Support Scheme for procurement of groundnut in Gujarat during the current Kharif season and directed NAFED and SFAC to initiate the procurement immediately at MSP + Bonus at Rs 4,220 per quintal. This step has been taken in order to ensure support price to farmers. The prices of groundnut in Gujarat have fallen below the minimum support price (MSP).
The Ministry of Agriculture and Farmers Welfare had earlier received a proposal from Government of Gujarat for procurement of groundnut under Price Support Scheme (PSS) in Gujarat during current kharif season, 2016-17.
The production of groundnut in the country is expected to rise by 70% to 54.80 lakh tonnes during this year's Kharif season, driven by a bumper output in Gujarat. According to data compiled by Solvent Extractors Association of India (SEA), the country had produced 32.30 lakh tonnes in the Kharif season last year.