Rain comes as relief

Marketing yard officials said the increase was expected in areas where groundnut sowing had been delayed and the standing crop received water just in time. 8220;Some of the check dams and irrigation canals which received fresh water will also supply water to fields in the district. This will also enhance production,8221; say officials.The total production will, however, be a far cry from the bumper crop of the last three years when it touched 18 to 23 lakh tonnes.But this will not influence the rising prices of groundnut oil in anyway. According to retail traders in Rajkot, the shortage of raw material for groundnut crushing will result in further hike in oil prices. 8220;The rate of groundnuts is also on the rise with farmers and stockholders beginning to hoard stock so that they can sell when the prices are really high,8221; says Ukabhai Patel, president of the Saurashtra Oil Millers Association. 8220;The oil mills are running out of raw material now as the farmers have stopped selling. Some of them have already sold their stock to domestic consumers as well as oil mills and there is a scarcity now. Others are holding their stock for a time when the demand will be high and prices of raw material will increase. Also the possibility of a failed crop this season has resulted in hoarding. All these factors are leading to a steady price rise,8221; he told Express Newsline.

The rains 8212; one to four inches 8212; in certain pockets of Saurashtra, have, however, come at an opportune time for the cotton crop that grows in the region. According to former MP Dr Vallabh Kathiria, who met farmers last week, the rain in the fag end of the season, will boost production by 25 per cent.

8220;The standing crop needed water before September 15 and this spell has really helped the farmers to save their crop from certain failure,8221; Kathiria said.

Market officials estimate that production may go up to around 30 lakh bales. Last year, there was a record production of 48 lakh bales, of which two lakh bales are yet to be sold even seven months after production.