Groundnut acreage in India's ongoing kharif season rose nearly 9 per cent to 46.82 lakh hectares (lh) as of August 7, from 43.11 lh a year ago, according to The Hindu BusinessLine. Farmers in Uttar Pradesh, Madhya Pradesh and Rajasthan expanded cultivation on the back of widespread monsoon rain, with the higher acreage supported by last year's government procurement at the minimum support price (MSP) and relatively steady prices ahead of the sowing season.
Acreage crosses normal seasonal level
The expansion in States such as Uttar Pradesh, Madhya Pradesh and Rajasthan more than offset declines in Gujarat, the largest producer, and Karnataka, where rainfall deficits curtailed sowing. Groundnut acreage also marginally exceeded the normal level of 46.79 lh for this point in the season, according to the latest Agriculture Ministry data cited in the report.
| State | Kharif 2026 acreage (lh) | Kharif 2025 acreage (lh) | Change (%) |
|---|---|---|---|
| Gujarat | 19.78 | 20.42 | -3.1% |
| Karnataka | 0.82 | 1.48 | -44% |
| Maharashtra | 1.35 | 1.31 | +3.1% |
| Rajasthan | 10.82 | 9.67 | +11.9% |
| Andhra Pradesh | 1.13 | 1.13 | ~unchanged |
| Madhya Pradesh | 5.86 | 4.17 | +40% |
| Uttar Pradesh | 4.71 | 2.65 | +78% |
| Chhattisgarh | 0.48 | 0.34 | +42% |
State-wise trends: UP leads with 78% jump
Uttar Pradesh registered the sharpest increase of nearly 78 per cent, with the area rising to 4.71 lh from 2.65 lh. Madhya Pradesh posted a 40 per cent jump in acreage to 5.86 lh from 4.17 lh, while Chhattisgarh rose 42 per cent to 0.48 lh from 0.34 lh. Rajasthan's acreage gained 11.9 per cent to 10.82 lh from 9.67 lh. Among the western states, Gujarat declined 3.1 per cent to 19.78 lh from 20.42 lh, and Karnataka fell 44 per cent to 0.82 lh from 1.48 lh. Maharashtra rose 3.1 per cent to 1.35 lh, while Andhra Pradesh remained almost unchanged at 1.13 lh.
MSP support and Nafed procurement
The Centre has fixed the MSP for groundnut at ₹7,517 per quintal for the 2026-27 season, according to the report. During the 2025-26 season, Nafed procured around 11.22 lakh tonnes of groundnut under the MSP-based Price Support Scheme, including 10.46 lakh tonnes from Gujarat, 0.39 lakh tonnes from Rajasthan and 0.36 lakh tonnes from Uttar Pradesh.
"Groundnut acreage has increased across most States. Besides remunerative prices, the assurance of procurement at MSP in States such as Gujarat and Rajasthan has encouraged farmers to expand cultivation. The recovery in monsoon rainfall has also supported sowing. Rainfall during mid-August and September will now determine the crop size," said Rahul Chauhan of IGrain India.
Price outlook hinges on monsoon
All-India wholesale mandi prices have eased from ₹7,333 per quintal on July 15 to around ₹7,073 per quintal, reflecting improved crop prospects following the rise in acreage. With the kharif groundnut crop already sown across 46.82 lh, the key variable for the market is the rainfall trajectory during mid-August and September, which per Chauhan will determine the final crop size. The narrowing gap between the MSP of ₹7,517 per quintal and prevailing mandi rates suggests procurement support will remain an important price anchor for the season.
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