India's 2026-27 peanut output may rise 3% on higher area
USDA's New Delhi office expects India's peanut crop to grow in 2026-27 as more farmers shift acreage from cotton to a better-paying oilseed.
India's peanut production is projected to rise by 3% in the 2026-27 season to 7.75 million tonnes as planted area expands and the crop offers farmers a better economic return. The Hindu BusinessLine, citing USDA's Foreign Agricultural Service office in New Delhi, reported that peanut acreage is expected to increase by about 2% to roughly 5.7 million hectares, up from 5.62 million hectares a year earlier.
A key driver is a likely shift by some farmers away from cotton and toward groundnut. The report says producers are responding to stronger realizations and steadier demand for peanuts. FAS also points to the spread of high-yielding varieties and ongoing research support, particularly in Gujarat, which remains one of the most important producing states for the crop.
Higher output is expected to feed into processing as well. Groundnut crushing is forecast to increase by around 2%, supported by demand from both food and feed users. The report highlights a projected 9% jump in feed use in major producing states such as Gujarat and Rajasthan. On that basis, groundnut meal production is expected to rise 3% to about 1.8 million tonnes.
Groundnut oil output is also forecast to grow, rising 4%, while exports may increase 8% on sustained demand from China. At the same time, the shift in acreage toward peanuts and corn is expected to weigh on cotton. Cotton area is projected to fall by around 2%, cottonseed production by 1% to 9.9 million tonnes, and cottonseed meal output to 4 million tonnes.
The broader oilseed balance remains mixed. Even with gains in peanuts, India's total oilseed production in 2026-27 is forecast at 41 million tonnes, slightly below the previous year, as farmers continue moving away from soybeans toward more profitable alternatives. Total crushing volumes are expected to stay near 34 million tonnes, but oilmeal production may edge down to 20.1 million tonnes because lower soybean output reduces meal availability more than increases in other crops can offset.