ManagementGroundnut consumption doubles in three years
Groundnut has witnessed a turnaround in consumption pattern — from a major oilseed for premium class consumers to a preferred choice for direct users. Direct consumption of groundnut doubled to 60 per cent of its total production, from 30 per cent three years ago.
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Experts attribute this rise to the change in consumption pattern, high dryfruit prices and lower demand of crushing for groundnut oil production. The shift assumes significance as the commodity’s availability for crushing had halved in the last three years, especially when the country had been facing huge upsurge in edibles oil imports.
Groundnut oil is considered as a premium oil and is quoted over 20 per cent higher than its nearest competitor, cottonseed oil. Since, the latter equals in hygiene and other ingredients, cottonseed oil has replaced groundnut oil in premium segment. As a consequence, the demand from oil extraction units has declined dramatically.
Confirming the change in consumption pattern, Nilesh Vira, chairman of Indian Oilseeds and Produce Export Promotion Council (IOPEPC), a body set up by the industry in association with the Ministry of Commerce, said the nut’s direct consumption has increased in dry, salted and packaged forms in producer and non-producer states.
According to industry veteran Sanjay Shah, out of the country’s total estimated production of 3.5 million tonnes, kernel can be only from 2 million tonnes. But, about 60 per cent of kernel output is consumed directly while the remaining 15 per cent is used for sowing and export of nuts.