Groundnut in India: The Complete Guide to Varieties, Cultivation, Yield, Oil Production, Prices and Trade

From Indian soil to groundnut oil: a complete guide to India's groundnut varieties, farming regions, seasons, yields, oil production, cold pressing, prices, exports and the journey from seed to bottle.

Groundnut, commonly known as peanut, is one of India's most important oilseed and food crops.

But groundnut is much more than a crop used to make cooking oil.

It is simultaneously:

• An agricultural crop
• An important edible oilseed
• A food ingredient
• A source of protein
• An export commodity
• A source of oilcake
• A raw material for food processing
• An important part of India's rural economy

And not all groundnuts are the same.

The variety, region, soil, rainfall, season, irrigation, harvesting method, storage conditions and processing technique can all influence the characteristics of the final kernel and oil.

The complete journey can therefore be understood as:

Variety → Seed → Farm → Pod → Kernel → Oil → Oilcake → Food → Trade

This guide explores that journey in the Indian context.

1. What Is Groundnut?

Groundnut (Arachis hypogaea L.) is a legume belonging to the Fabaceae family.

Although commonly called a "nut", groundnut is botanically a legume and the edible portion is the seed.

The plant has an unusual growth habit.

After flowering, structures called pegs develop and grow downwards into the soil. The pods then develop underground.

This makes groundnut different from crops where the harvested seed develops entirely above ground.

Because the pods develop underground, soil structure, drainage, moisture and harvesting conditions are particularly important.

Groundnut is used for several major purposes.

Food

Groundnut kernels are used for:

• Roasted peanuts
• Snacks
• Confectionery
• Peanut butter
• Peanut flour
• Sweets
• Food ingredients

Oil

Groundnut kernels can be mechanically processed to produce edible groundnut oil.

Oilcake and Meal

The solid material remaining after oil extraction also has commercial value.

Export

India is an important exporter of groundnut and groundnut products.

2. Why Is Groundnut Important to India?

Groundnut is one of India's major oilseed crops and is grown across several agro-climatic regions.

India produces millions of tonnes of groundnut every year, with Gujarat, Rajasthan, Madhya Pradesh, Tamil Nadu and several southern and central Indian states being important production regions.

Groundnut is important because it connects agriculture with several industries:

Farmer → Trader → Sheller → Processor → Oil Mill → Food Industry → Exporter → Consumer

It is also an important source of edible oil, food ingredients, protein-rich material and oilcake.

The Indian groundnut industry therefore has both agricultural and industrial importance.

3. India's Major Groundnut-Producing States

Groundnut is cultivated across many parts of India.

The following table shows major state-wise production for 2024–25.

What Does This Table Tell Us?

Gujarat is the largest groundnut-producing state in this dataset, accounting for approximately 43.7% of India's production in 2024–25.

However, production and productivity are not the same thing.

A state can produce a large quantity because it has:

• A large cultivated area
• High productivity
• Or a combination of both

This is why both area and yield are important when understanding Indian groundnut production.

4. Is Groundnut a Rainfed Crop?

Groundnut is widely cultivated under rainfed conditions in India, although irrigation is important in many production areas.

Rainfall is important, but its timing and distribution can be just as important as the total amount received.

Important stages of the crop include:

• Germination
• Flowering
• Pegging
• Pod development

Because the pods develop underground, moisture and soil conditions around pegging and pod development are particularly important.

5. Groundnut Growing Seasons in India

Groundnut is cultivated during different seasons depending on the region.

Kharif Groundnut

Kharif is the principal groundnut season across much of India.

Sowing generally coincides with the monsoon.

Rabi Groundnut

Groundnut is cultivated during Rabi in suitable areas where temperature and irrigation conditions permit.

Summer Groundnut

Summer groundnut is cultivated in selected irrigated production systems.

Therefore, there is no single groundnut calendar for the entire country.

The crop calendar depends on:

• State
• Climate
• Rainfall
• Irrigation
• Soil
• Variety
• Local farming practices

6. Why Does the Groundnut Season Matter?

Groundnut does not enter the market uniformly throughout the year.

The basic agricultural cycle is:

Sowing → Crop Development → Harvest → Market Arrivals → Processor Procurement → Oil Production → Retail Availability

When large quantities arrive in the market after harvest, supply can increase significantly.

Conversely, lower arrivals, strong demand, quality shortages or changes in competing edible-oil prices can influence procurement prices.

This seasonal movement is one reason groundnut prices can change during the year.

7. Groundnut Varieties in India

India has a large number of groundnut varieties developed for different regions and production conditions.

Breeding objectives can include:

• Higher yield
• Early maturity
• Drought tolerance
• Disease resistance
• Larger kernels
• Improved shelling percentage
• Higher oil content
• Improved fatty-acid composition
• Better food quality
• Regional adaptation

A variety that performs well in one region should not automatically be assumed to perform similarly elsewhere.

8. Important Groundnut Varieties

Some improved groundnut varieties developed for Indian production regions include:

These are reported variety-specific performance figures and should not be interpreted as guaranteed commercial farm yields.

Actual yields depend on:

• Soil
• Rainfall
• Irrigation
• Seed quality
• Crop management
• Disease pressure
• Weather
• Planting date

9. Groundnut Varieties in Telangana

Telangana is an important groundnut-growing region and is particularly relevant to the southern Indian groundnut value chain.

Groundnut varieties used or recommended for different Telangana production systems include:

Kharif

• KDG 128
• KDG 123
• Kadiri Amaravathi
• GJG 32
• JL1085
• Dheeraj
• Dh256
• Girnar 4
• Girnar 5
• Jagtial Palli 1
• K1812
• GG40

Rabi / Summer

• ALG 06-320
• GJG 33
• Phule Chaitanya
• Dheeraj
• TCGS 894
• Jagtial Palli 1
• K1719

Variety recommendations can change as new research becomes available, so farmers should use current recommendations from agricultural universities and ICAR institutions for their specific location.

10. Does Groundnut Variety Affect Oil?

Yes.

Different groundnut varieties can differ in:

• Oil content
• Oleic acid
• Linoleic acid
• Protein
• Kernel size
• Shelling percentage
• Maturity
• Storage characteristics

This means that two oils can both correctly be called groundnut oil, while having different characteristics.

For an oil processor, the raw material therefore matters enormously.

11. What Is High-Oleic Groundnut?

One of the most interesting developments in groundnut breeding is the development of high-oleic groundnut.

Conventional groundnut varieties generally contain substantially less oleic acid than specially bred high-oleic varieties.

Indian high-oleic varieties such as Girnar 4 and Girnar 5 have been reported to contain approximately 78% oleic acid in their oil.

High-oleic groundnut is of particular interest because higher oleic content is associated with improved oxidative stability.

This can be valuable in food-processing applications where oil stability and shelf life are important considerations.

12. Why High-Oleic Groundnut Matters

Traditional crop breeding often focused heavily on:

More Yield

Modern breeding increasingly considers:

Yield + Resilience + Oil Quality + Market Value

High-oleic groundnut is a good example.

It demonstrates that the future of oilseed agriculture is not necessarily about producing only more tonnes.

It is also about producing raw materials with characteristics suited to specific end uses.

13. What Makes Good Groundnut?

Groundnut quality starts in the field but does not end at harvest.

Important quality parameters include:

• Variety
• Maturity
• Moisture
• Foreign matter
• Damaged kernels
• Insect damage
• Fungal contamination
• Storage conditions
• Handling
• Transportation
• Grading

For an oil processor, kernel quality can influence:

• Oil recovery
• Flavour
• Colour
• Stability
• Processing efficiency
• Finished-oil quality

14. Why Groundnut Storage Matters

Groundnut can deteriorate if stored under unsuitable conditions.

Important storage factors include:

• Moisture
• Temperature
• Humidity
• Ventilation
• Insects
• Fungal growth

One major food-safety concern associated with poorly managed groundnuts is aflatoxin contamination.

This is particularly important in international trade.

Good groundnut therefore requires:

Good Cultivation + Good Harvesting + Good Drying + Good Storage + Good Testing

15. From Groundnut Pod to Kernel

After harvest, groundnut passes through several stages before it becomes an oil-processing raw material.

Harvested Pods → Drying → Cleaning → Shelling → Kernel Grading → Sorting → Oil Extraction

The intended destination determines how the groundnut is handled.

Groundnut may be destined for:

• Direct consumption
• Food processing
• Seed
• Oil extraction
• Export

16. How Is Groundnut Oil Produced?

Groundnut oil can be produced through several extraction technologies.

Mechanical Pressing

Physical pressure is used to release oil from the kernels.

Wooden Ghani / Chekku

Traditional mechanical pressing systems use physical pressure to extract oil.

Expeller Pressing

Mechanical expellers are widely used in commercial oil processing.

Solvent Extraction

Large industrial processors may use solvents to recover a high proportion of oil from oil-bearing material.

Refining

Crude oil may undergo further processing to produce refined oil with more standardized characteristics.

These processes are different and should not be treated as interchangeable.

17. What Does "Cold Pressed" Mean?

Cold pressing broadly refers to mechanical extraction without solvent extraction.

However, the words "cold pressed" alone do not describe every characteristic of the finished oil.

The final result can be influenced by:

• Seed variety
• Seed freshness
• Moisture
• Cleaning
• Pressing conditions
• Temperature
• Settling
• Filtration
• Storage
• Packaging

Therefore:

Cold pressed describes an extraction approach, not a guarantee that every cold-pressed oil will taste or perform identically.

18. How Much Oil Is in Groundnut?

This is one of the most misunderstood aspects of oil production.

There are three different concepts:

Oil Content

The amount of oil naturally present in the kernel.

Extraction Recovery

The quantity of oil actually recovered during processing.

Finished Packaged Oil

The quantity ultimately available after processing, settling, filtration and handling.

These are not necessarily the same.

For example, some high-oleic groundnut varieties have been reported to contain approximately 53% oil.

That does not mean that every 1 kg of groundnut will produce 530 ml of packaged oil.

Actual recovery depends on:

• Variety
• Kernel quality
• Moisture
• Preparation
• Pressing conditions
• Press efficiency
• Processing losses

19. Mesmara's Actual Groundnut Oil Recovery

This is where real production data becomes more useful than theoretical calculations.

Mesmara's recent groundnut production records provide an actual example of mechanical oil recovery.

Across the recorded batches:

What Does This Mean?

On this recorded production run:

1,000 kg of groundnut would be equivalent to approximately 453.6 litres of oil at the observed average recovery.

This is an actual Mesmara production result, not a theoretical claim about all groundnuts.

The individual batches were remarkably consistent, with recovery remaining within a relatively narrow range.

However, this number should not be presented as a universal groundnut-oil recovery rate.

Actual recovery can change with:

• Variety
• Moisture
• Kernel quality
• Seed preparation
• Press settings
• Operating conditions
• Batch characteristics

Oil Content vs Oil Recovery

This distinction is important:

Oil content = what is present in the seed

Oil recovery = what the processor actually obtains

That difference is one of the most important concepts in understanding oilseed processing.

20. Mesmara's 1,000 kg Groundnut Example

Using the observed recovery from the recorded Mesmara production batches:

1,000 kg groundnut → approximately 453.6 litres of oil

The remaining material is not simply waste.

Oil extraction also produces valuable solid material such as groundnut oilcake, while shelling and cleaning generate other fractions.

This is why oil-mill economics must consider the complete value chain rather than only the oil coming out of the press.

21. Groundnut Oil: Taste and Aroma

Groundnut oil is traditionally associated with a characteristic nutty aroma and flavour.

The sensory profile can vary depending on:

• Variety
• Growing region
• Seed maturity
• Storage
• Processing method
• Pressing conditions
• Filtration
• Refining

This is one reason different groundnut oils can taste different even though they are all made from the same crop.

22. Groundnut Oil in Indian Cooking

Groundnut oil has a long history in Indian kitchens.

It is used for:

• Frying
• Deep frying
• Sautéing
• Tempering
• Curries
• Snacks
• Traditional regional preparations

Its use is particularly prominent in several parts of western and southern India.

Cooking preferences, however, vary significantly between regions and households.

23. Groundnut Oil and Fatty Acids

Groundnut oil contains several major fatty acids, including:

• Oleic acid
• Linoleic acid
• Palmitic acid
• Stearic acid

The proportions can vary between varieties.

This becomes particularly relevant when comparing conventional groundnut with high-oleic varieties.

Therefore, "groundnut oil" should not automatically be assumed to have exactly the same fatty-acid profile in every batch or every variety.

24. Groundnut Prices in India

Groundnut prices are influenced by many factors.

Agricultural Factors

• Acreage
• Rainfall
• Yield
• Pest and disease pressure
• Harvest conditions

Market Factors

• Market arrivals
• Farmer selling patterns
• Quality
• Variety
• Storage
• Processor demand

Edible-Oil Market Factors

• Domestic edible-oil demand
• Competing oil prices
• International commodity prices
• Imports
• Exports
• Currency
• Freight
• Government policy

This is why groundnut prices can change even when the overall crop appears healthy.

25. MSP vs Mandi Price vs Processor Price

These three prices should not be confused.

MSP

Minimum Support Price is a government-announced support price for eligible agricultural commodities.

Mandi Price

The actual market price can vary according to:

• Location
• Quality
• Moisture
• Grade
• Demand
• Arrivals

Processor Procurement Price

A processor may pay a different effective price depending on:

• Quality
• Oil content
• Logistics
• Volume
• Payment terms
• Processing suitability

For the 2026–27 marketing season, the MSP for groundnut-in-shell is:

₹7,517 per quintal

MSP should not be interpreted as the actual transaction price for every farmer or every market.

26. India's Groundnut Production

Groundnut production in India has fluctuated over the years because of changes in:

• Acreage
• Rainfall
• Irrigation
• Yield
• Weather
• Farming practices
• Market conditions

Government agricultural statistics show that India produced approximately 11.94 million tonnes in 2024–25.

The latest advance estimate reported by APEDA places India's 2025–26 production at approximately 13.07 million tonnes.

Because agricultural statistics can be revised, different official releases may show slightly different figures for the same year.

27. Why Can Groundnut Prices Rise Even When Production Is High?

A large crop does not automatically mean low prices.

Commodity prices depend on the relationship between supply and demand.

Prices can be influenced by:

• Export demand
• Processor procurement
• Competing edible-oil prices
• Farmer stockholding
• Quality shortages
• International oil prices
• Imports
• Currency movements
• Government policy

Therefore:

Production is only one part of the price equation.

28. India's Edible-Oil Market

Groundnut oil operates within India's much larger edible-oil market.

India uses several major edible oils, including:

• Palm oil
• Soybean oil
• Sunflower oil
• Mustard and rapeseed oil
• Groundnut oil
• Other vegetable oils

This means the price of groundnut oil does not depend only on groundnut.

Changes in international palm, soybean and sunflower oil prices can influence the competitive environment for Indian groundnut oil.

29. India's Groundnut Exports

Groundnut is an important agricultural export from India.

India exported approximately:

663,810 tonnes of groundnut in 2025–26

with an export value of approximately:

US$690.93 million

Major destinations included:

• Indonesia
• Vietnam
• Malaysia
• China
• Philippines

These figures refer to groundnut exports and should not be confused with exports of groundnut oil.

30. Groundnut Export vs Groundnut Oil Export

There is an important difference between:

Groundnut Export

The physical groundnut or kernel is exported.

Groundnut Oil Export

The groundnut is processed first and the extracted oil is exported.

These represent different stages of the agricultural value chain.

Processing can therefore add value before a product enters the international market.

31. Export Quality and Aflatoxin

Export markets can have stringent requirements for:

• Aflatoxin
• Moisture
• Foreign matter
• Pesticide residues
• Microbiological quality
• Grading
• Traceability
• Packaging

Aflatoxin is particularly important in groundnuts because certain fungi can produce these toxins under favourable conditions.

This means export-quality groundnut requires control throughout the chain:

Farm → Harvest → Drying → Storage → Processing → Testing → Export

32. Groundnut Farming and Soil

Groundnut generally performs best in well-drained soils.

Because the pods develop underground, poor drainage can create problems.

Important soil characteristics include:

• Good drainage
• Suitable structure
• Appropriate pH
• Adequate calcium
• Appropriate nutrient availability
• Suitable organic matter

Exact recommendations vary according to soil type and location.

33. Water Management

Groundnut water requirements depend on:

• Soil
• Climate
• Season
• Variety
• Rainfall
• Irrigation method

Water is particularly important around:

• Germination
• Flowering
• Pegging
• Pod development

Efficient water management is increasingly important as Indian agriculture faces greater pressure on water resources.

34. Understanding Groundnut Yield

Yield figures must specify what is being measured.

Pod Yield

Includes shell and kernel.

Kernel Yield

The usable seed after shelling.

Oil Yield

The oil ultimately recovered during processing.

These are three different measurements.

A variety with a high pod yield does not automatically produce the highest quantity of oil.

35. The Groundnut Oil Yield Equation

A useful way to understand oil production is:

Pod Yield × Kernel Recovery × Kernel Oil Content × Actual Extraction Recovery = Approximate Oil Output

This is much more meaningful than simply quoting an oil percentage.

36. Why Seed Variety Matters to Oil Production

Imagine two groundnut varieties.

Variety A

Higher pod yield. Lower oil percentage.

Variety B

Lower pod yield. Higher oil percentage.

Which produces more oil?

There is no answer without calculating the entire chain.

The relevant factors are:

Pod Yield → Kernel Recovery → Oil Content → Actual Extraction Recovery

This is why modern oilseed breeding increasingly considers both farm productivity and end-use quality.

37. Groundnut Oilcake

Oil extraction produces more than oil.

The remaining solid material can become:

Groundnut oilcake / meal

This has commercial value and can be used in appropriate feed and agricultural applications subject to quality and safety requirements.

The economics of an oilseed processor therefore depend on:

Oil Value + Oilcake Value + Other Recoverable Value

rather than oil value alone.

38. The Groundnut Value Chain

The complete value chain can be represented as:

1. Breeding
2. Seed production
3. Farmer
4. Soil + water + climate
5. Crop
6. Harvest
7. Drying
8. Storage
9. Shelling
10. Grading
11. Food / oil / export
12. Groundnut oil + oilcake
13. Consumer / food industry / feed industry

Every stage can influence the quality and economics of the final product.

39. Groundnut and the Future of Indian Oilseeds

The Indian groundnut industry is evolving.

Important areas of future development include:

Higher Yields

Producing more from the same cultivated area.

Climate Resilience

Developing varieties better adapted to weather variability.

Disease Resistance

Reducing production losses.

Shorter-Duration Varieties

Helping farmers fit groundnut into different cropping systems.

High-Oleic Varieties

Producing groundnut with specific oil characteristics.

Better Seed Systems

Increasing access to quality planting material.

Mechanisation

Reducing labour dependence.

Export Quality

Improving traceability and food-safety compliance.

Higher-Value Markets

Producing varieties designed for particular food and processing applications.

40. A New Generation of Indian Groundnut

The development of high-oleic groundnut illustrates an important change in crop breeding.

Traditional improvement focused heavily on:

Yield

Modern breeding increasingly considers:

Yield + Resilience + Oil Quality + Market Value

This creates the possibility of more differentiated groundnut markets.

Instead of treating every kilogram of groundnut as identical, buyers may increasingly consider:

• Variety
• Oil content
• Fatty-acid profile
• Kernel size
• Quality
• Safety
• Traceability
• End use

41. Groundnut: From Indian Soil to a Bottle of Oil

For a consumer buying a bottle of groundnut oil, the final product may appear simple.

But behind that bottle is an entire agricultural and industrial ecosystem.

The journey begins with:

A Variety → A Farmer → A Field → A Season → Weather → Harvest → Storage → Seed Selection → Processing → Oil Extraction → Quality Control → Packaging → Your Kitchen

At Mesmara, we believe understanding this journey makes it easier to appreciate the importance of the seed.

Because the story of good oil begins long before the oil reaches the press.

It begins with the seed.

42. Groundnut Frequently Asked Questions

Which state produces the most groundnut in India?

Gujarat is the largest groundnut-producing state in the detailed 2024–25 state dataset, accounting for approximately 43.7% of India's production.

Is groundnut a Kharif crop?

Groundnut is predominantly cultivated during Kharif in India, but it is also grown during Rabi and Summer seasons in suitable regions.

Which groundnut varieties are grown in Telangana?

Varieties used or recommended for different Telangana production systems include KDG 128, KDG 123, Kadiri Amaravathi, GJG 32, JL1085, Dheeraj, Dh256, Girnar 4, Girnar 5, Jagtial Palli 1, K1812, GG40 and several Rabi/Summer varieties.

What is high-oleic groundnut?

High-oleic groundnut is bred to contain substantially more oleic acid than conventional groundnut varieties. Indian varieties such as Girnar 4 and Girnar 5 have been reported to contain approximately 78% oleic acid.

Does higher oil content always mean higher oil production?

No.

Total oil production depends on:

Pod Yield × Kernel Recovery × Oil Content × Actual Extraction Recovery

How much oil comes from 1 kg of groundnut?

There is no universal number.

In Mesmara's recorded production batches used for this article, the average observed recovery was approximately 0.454 litres per kg of groundnut processed.

This is a recorded Mesmara production result and should not be interpreted as a universal groundnut-oil recovery rate.

Why does groundnut oil taste different between brands?

Flavour can be influenced by variety, growing region, seed freshness, storage, pressing, filtration and refining.

What happens to groundnut after oil extraction?

The remaining solid material can become groundnut oilcake or meal, which has additional commercial value.

Does India export groundnuts?

Yes.

India exported approximately 663,810 tonnes of groundnut in 2025–26, valued at approximately US$690.93 million.

What is the MSP of groundnut in India?

For the 2026–27 marketing season, the MSP for groundnut-in-shell is ₹7,517 per quintal.

43. Groundnut in One Picture

Seed → Variety → Farmer → Soil → Season → Crop → Harvest → Pod → Kernel → Press → Groundnut Oil → Oilcake → Indian Kitchen

That is the journey of groundnut in India.

Explore More from Mesmara

Want to understand another Indian oilseed?

Explore our detailed guides to:

• Sesame
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And explore Mesmara's cold-pressed oils.