Andhra Pradesh Market Watch: Groundnut Prices Surge as Pulses and Cereals Hold Steady

The most striking trend in the current reporting period is the robust premium on groundnut. While the government set the MSP at 7,263.00 per quintal, the commodity is fetching a significant market price of 8,899.00 per quintal. This price cushion comes despite healthy arrivals totaling 1,959 metric tonnes, suggesting a high industrial and consumer demand that the current supply is struggling to satiate. Conversely, Bengal gram (whole) continues to face price pressure; currently trading at 5,109.00 per quintal, it remains nearly 10% below its MSP of 5,650.00, posing a potential challenge for pulse farmers looking to recoup their investments.

In the cereals and fiber segments, the market appears more synchronized with federal targets. Paddy (Common) remains the backbone of the state’s agricultural volume, trading at 2,350.00 per quintal against an MSP of 2,369.00. Cotton, a vital commercial crop for the region, is showing remarkable stability, with market prices hovering at 7,679.00 per quintal, just a fraction away from the official 7,710.00 floor. These figures indicate a relatively balanced supply-demand ratio for long-cycle crops, even as daily arrivals remain fragmented across different district procurement centers.

The perishables sector—specifically vegetables—showcases the inherent volatility of the open market. Without the safety net of an MSP, potato prices have flattened at 1,400.00 per quintal across the board. Meanwhile, the tomato market remains highly active, with average prices landing at approximately 1,455.06 per quintal. Though tomato arrival volumes are lower than groundnut or cotton at roughly 128 metric tonnes, the price fluidity reflects the sensitive nature of supply chains in the vegetable category. As the 2026-27 marketing season progresses, the widening gap in groundnut profitability and the slight deficit in pulse pricing are expected to drive administrative focus toward procurement interventions and market stabilization efforts to protect the state’s diverse farming community.