Project_on Ground Nut Oil

8/8/2019 Project_on Ground Nut Oil

1/14

08097577647

INTRODUCTION:

A native of South America groundnut or peanut is one of theimportant oilseed in the world. Known for its ability to survive in less

favorable agro-climatic conditions, peanuts have above 40% oil

content. Used as edible oil in many parts of world it is also oil cake

derived after extracting oil is also used as cattle feed. Groundnut is

the major oilseed crop in India accounting for 45% of oilseed area and

55% of oilseed production in the country. Groundnut (Arachis

hypogaea ) is believed to be the native of Brazil to Peru, Argentinaand Ghana, from where it was introduced into Jamaica, Cuba and

other West Indies islands. It was introduced into India during the first

half of the sixteenth century from one of the Pacific islands of China,

where it was introduced earlier from either Central America or South

America. Now India along with china accounts for half of the world's

groundnut production.

DESCRIPTION:

Groundnut is an oilseed derived from the fruit of the groundnut

plant. It is referred to as a nut in general terms but it is not a nut

exactly in actual terms, it is a seed rather and is also known by the

name of peanut. The groundnut plant is an annual plant herb that

comes from the pea family of Fabaceae. The plant has feather type

leaves; yellow flowers and grows a legume shaped fruit that has 2 to 3

seeds which develops inside the earth. Also, oil is obtained from the

groundnut seeds that is an excellent source of vitamin E, various fatty

acids and carbohydrates and is largely used as a cooking medium,

lighting fuel and food constituent.


2/14

HISTORY:

The groundnut plant is believed to have originated in the

South American continent, primarily in the tropical areas of Peru as

the archeological records assume. The climate there helped the plant

to grow and develop as a wild plant. But no evidence has been found

out regarding the confirmation of the above assumption. But the

domestication of this plant was done in the valleys of Paraguay only.

Groundnut was being cultivated in the new world countries since

2500BC and this was the place where a diversity of the species of

groundnut was cultivated.

When Columbus found America, groundnut came in to the

contact of the rest of the world. The Spaniards who explored the

southern America encountered with this nut like seed and soon after,

the different varieties of groundnut started to get spread around the

world. A type of variety named Virginia was taken to Mexico first

and then to west Africa. Then it moved to the North America courtesy

the West Indies and West Africa in the 17th century. The Peruvian

variety was taken to the southeastern Asian regions of China and

Philippines by the Spanish ships and ultimately these foreign beans

spread all over Asia. The Spanish variety was taken into Africa directly

by the Portuguese explorers and there it got mixed with the Virginia

variety and was finally introduced into Spain in the 18th century. The

latest groundnut variety i.e. Valencia was taken to the country of

Spain from Argentina in the 19th century and then it spread over all

the Europe later.

CULTIVATION PATTERN:


3/14

Groundnut plant is a tropical plantation, as it requires a hot

and humid climate to grow. The basic factor that affects the

performance of the crop is rain or extent of irrigation. It is an essential

for a good yield of groundnut to have high level of rainfall. Groundnutprospers well in a light, sandy loam soil. The pod needs duration of 4-

5 months to ripen. The time at which the crop is to be harvested also

requires proper attention. The groundnut fruits are to be harvested

exactly when they started to get ripe and not anytime else. At the

time of harvesting, the whole plant, even the roots are totally

removed from the soil.

The planting season in India starts from May and stays till

August. It largely depends on the time of the arrival of monsoon in

the country. The harvesting season starts from September to January.

In India, 2/3rds of the crop is cultivated as a khariff crop and the rest

is produced as rabi crop.

OVERVIEW:

Groundnut is considered to be the one of the most

important oilseed crops in the world. It is grown in over 100 countries

of the world and plays a crucial role in the world economy. The seeds

are a good source of edible oil and proteins present in the groundnut

oil cake. The percentage of oil and protein are extracted from the

seed are approximately 55% and 28% respectively. The oil cake meal

left after the extraction of the oil is used as an animal fodder andfertilizer. The peanut oil is primarily needed as a cooking agent but it

also has some industrial uses like in paint, varnish, lubricating oil,

soap, furniture polish etc. the peanut seeds are also consumed

directly in roasted form, as butter, in brittle and candies etc.


4/14

Groundnut production has reached the mark of around 34

million tons. China followed by India is the largest producer of this

oilseed crop in the world. The groundnut oil production hovers

around 8 million tons annually. These two countries are alsoresponsible for the highest consumption of groundnut.

VARIETIES OF GROUNDNUT:

1.SPANISH GROUP2.RUNNER GROUP3.VIRGINA GROUP4.VALENCIA GROUP5.TENNESSEE RED OR TENNESSEE WHITE

INDIAN GROUNDNUT MKT:India has been a land where oilseeds have much importance than any

other crop. Groundnut constitutes one of the major oilseed in India.

As already mentioned, it accounts to about 25% share in the total

oilseeds production in India. The country produces around 6 million

tons of groundnuts annually; Gujarat being the leader in the

production of the crop producing over 40% of the crop produced

India. The groundnut oil production in India hovers around 1.5 million

tons per year. The production of groundnut seed in the country has

shown fluctuations quite often largely due to the monsoon behavior.

India places 2nd in the world groundnut consumption list. The country

actually consumes all most all of its groundnut yield produced that is


5/14

around 30% of the worlds total consumption. The main demand of

groundnut and derivatives generate from the western and southern

parts of the country.

MKT SITUATION:

Climatic conditions, especially South-West monsoon plays

significant role in shaping the fortunes of groundnut in the country.

Price of competing oilseeds like soybeen, palm oil, sunflower, mustard

etc. influences price of groundnut and oil.

MKT INFLUENCING FACTORS:

y Weather conditions in major groundnut producing regions.y Monsoon status in the country.y Price fluctuations of the other competitive edible oils.y International price movements.y High consumption in festive seasons and celebrations.

GLOBAL SITUATION:

Global out of groundnut and groundnut oil is estimated at million

tons. Argentina, U.S and China are the leading suppliers of edible

peanut in the world. India, Sudan, Nigeria, Senegal and Myanmar are

also important producers of groundnut.

INDIAN SITUATION:

India is rated as the third largest producer of groundnut in the

world with annual production of over 5-6 million tons. Gujarat,

Andhra Pradesh, Tamil Nadu and Karnataka are the leading producers


6/14

in the country and accounts for nearly 75% of the total output.

Groundnut contributes to nearly 25% of total oil seed production in

the country. Nearly 75% output occurs in June-September and the rest

during November-March known as kharif and rabi seasonsrespectively.

FACOTRS INFLUENCING GROUNDNUT OIL MKTS:

y Weather at the major domestic producing centers. Thesouthwest monsoon is the most important factor that

determines the area sown, production and prices.

y Price of other competitive oils in India, viz., soy oil, palm oil,cottonseed oil, sunflower oil and mustard oil.

y International price movement of soy oil at CBOT and palm oil atBMD, Malaysia also influence the groundnut oil prices.

y Festivals and celebrations also increase consumption and theprices.

INDIA IN THE WORLD GROUNDNUT INDUSTRY:

05

10152025

3035

India

World

% Share


7/14

GROUNDNUT PRODUCING COUNTRIES:

Groundnut is one of the vastly produced oilseed crop in the

world as it is cultivated in more than 100 countries in the world andthat is why it is referred to as a universal crop. The areas in the

tropical belt of the earth enjoy the major share in this groundnut crop

production as these type of weather conditions suit well to it. It is

estimated that around 65% of the crop produced in the world is

crushed to extract groundnut oil and the rest is used in making other

edible products. The world production of groundnut seeds hovers

around 34 million tons per year in the current scenario. Thegroundnut oil is produced to an extent of around 8 million tons.

MAJOR PRODUCERS OF GROUDNUT:

43%

4%

2%

2%

2%1%

1%1%

1%1%

1%

1%

1%1%

0%

0%

Tons

China

India

Nigeria

U.S

Indonesia


8/14

In context of the production of groundnut oil, China again tops

the chart with a production of around 2.5 million tons India following

with the production of around 2 million tons. The other regions where

groundnut oil is produced includes sub-Saharan African countries andcentral and southern America. The maximum area that is used for the

production of this oilseed is bagged by India with around 8 million

hectares that accounts up to 30% share in the total area of around

26.5 million hectares. The country that gets maximum yield from the


9/14

groundnut crop is USA which has a yield of of approximately 3540 Kg/

hectare. The world production has been in the up trend since last

decade and still, it is rising steadily.

PRODUCTION OF GROUNDNUT IN INDIA:

India has been producing groundnut since it has been introduced

in Asia in the 16th century. The weather in the Indian subcontinent

suited well to the crop and India transformed into an important

contributor to the world production. The country ranks 2nd in the

world groundnut production scenario with an annual groundnut seed

production of 5.9 million tons and annual groundnut oil production of

1.5 million tons in 2005. Also, India has the maximum area covered

under groundnut cultivation.

This consumption pattern of the country contracts the Indian

groundnut export size and does not allow it to gain dominance over

the world market even though a high production level. Earlier it wasan important exporter of groundnut and its by-products in 1970s. But

with time it lost all its importance due to its high prices and increasing

competitiveness. The Indian exports of groundnut oil to the world

showed a fluctuating trend in the last decade. In 2003-04 India

exported around 1 lakh tons of groundnut oil due to a crop failure in

Argentina and Senegal. The imports in the country are second to none

as the production level is quite sufficient for the domestic demand

level in the country.The Indian production and area covered is largely concentrated

in the above mentioned states. Today, groundnut has a share of


10/14

approximately 25% in the total Indian oilseed production. But this

share is constantly reducing since India got independent, as it was

around 70% in 1950s.

MAJOR TRADING CENTERS:

1.MUMBAI2.RAJKOT3.INDORE4.AHMEDABAD5.DELHI6.GONDAL7.JUNAGARH8.ADONI

Also, groundnut is traded in Indian commodity exchanges

namely, National Commodity & Derivatives Exchange ltd, National

Multi Commodity Exchange of India ltd, Multi Commodity Exchange of

India ltd, The Rajkot Seeds oil & Bullion Merchants` Association Ltd

and The Bombay Commodity Exchange ltd.

MAJOR GROUNDNUT CONSUMING COUNTRIES:

1.CHINA2.INDIA


11/14

3.NIGERIA4.UNITED STATES5.EUROPEAN NATIONExcept European Union, all the countries lie in the list of major

groundnut producing countries as well. European Union countries are

the largest consumer of groundnuts where the crop is not produced.

The major demand i.e. around 75% comes from the food sector and

the rest from other sectors.

As European union is the largest consumer of the oilseed where it

is not produced, it has to rely on imports and that makes thecountries in the union the largest importers of groundnut. The trade

done in the world in the context of groundnuts is estimated to about

1 lakh tons per year.

LEADING GROUDNUT EXPORTING COUNTRIES:

0

50

100

In % (World Exports)

In % (World

Exports)


12/14

MAJOR STATES INDULGED IN THIS CROP:

1.GUJRAT2.ANDHRA PRADESH3.TAMIL NADU4.KARNATAKA5.MADHYA PRADESH6.MAHARASHTRA7.ORISSA8.RAJASTHAN

PRICE VOLATILITY:

0

50

100

< 1 1 to 3 > 3

Raw Groundnut Oil

Raw

Groundnut

Oil


13/14

GLOBAL SCENARIO:

y Groundnut Arachis hypogaea Linnaeus is one of the world'simportant oilseed crops. Its seeds are a rich source of edible oil

(43-55%) and protein (25-28%).

y Groundnut kernels are approx. 70% of weight in shells andkernels have an oil recovery of 40-42%.

y Global production of groundnut seed and oil oscillates between21-24 and 4-5.5 million tons.


14/14

y China (2-2.5 million tons), India (1.5-2 million tons) are the majorproducers of groundnut oil, followed by Sub-Saharan African

countries and Central and South America.

y Global trade of groundnut oil is to the maximum of 1 lakh tons ayear. EU and US are major importers. Senegal and Argentina are

the major exporters.

y Groundnut kernels are approx. 70% of weight in shells andkernels have an oil recovery of 40-42%.

INDIAN SCENARIO:

y Groundnut is the major oilseed of India. . It accounts for around25% of the total oilseed production of the country. Annual

production of seed and oil are around 5-8 and 1.5 million tons

respectively.

y Production is highly vulnerable to rainfall deviations and displayhuge fluctuation between years.

y Gujarat (1-3.5 million tons), Tamil Nadu (1million tons), AndhraPradesh (1-2 million tons), Karnataka (0.5 million tons),

Maharashtra (0.5 million tons) are the major producers of seed.

y Around 75% of the crop is produced in khariff (June - September)and remaining 25% in rabi (November - March).

y India exported around 1 lakh tons of groundnut oil in 2003-04after 4 decades, as crop failed in Senegal and Argentina.

CONTRACT SPECIFICATIONS OF GROUDNUT OIL---GIVEN BY ABDUL SIR

IN THE XEROX SHEET

Project_on Ground Nut Oil

Documents

Transcript of Project_on Ground Nut Oil