Indian Journal of Economics and Development: Forthcoming Issue

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Value Chain of Groundnut-An Analysis of Constraints and Opportunities Ahead


Shakuntala Devi. I*, K. Suhasini and B. Neeraja Prabhakar



Groundnut is primarily a suitable crop to rabi season which has a complex value chain to understand, the study traced the value chain of groundnut realizing its importance as a primary source of oil. Recent statistics show that even at all India level only 22 per cent of area under groundnut is irrigated. The value chain defines the roles and responsibilities of each player from the producer to the consumer. There is a vast potential in catching the untapped potential of groundnut as products like edible oil, ground nut cake, raw and fried forms and even export quality peanuts. The value chain is complex and there is absence of intuitional network to from the supply of inputs particularly seed, high seed cost, development of adoptable cultivars with preferred qualities from research, marketing mechanism, low remunerative price even the MSP fixed is not sufficient to cover the cost of production. On the other side farmer is forced for distress sale, neither warehousing nor own storage space is available. A suitable mechanism of value chain comprising of quality supply of inputs, new emerging farmer producer organization and networking capabilities with processors and redefined role of marketing federations / facilitators help the starving groundnut crop in marginal lands and rejuvenating oilseed improvement programmes will help bridging the yield gaps so that the farmers become inclusive and reap the benefits of value chain.

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  • Contents IJED 15(4) 2019

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