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Groundnut Cultivation Cost Per Acre in India: Exploring State-Wise Average Production Cost

Groundnut cultivation cost in India varies across states due to different factors like soil type, climate, and farming practices. Let’s delve into a detailed analysis of state-wise average production costs per acre, shedding light on the intricacies of groundnut farming expenses in this diverse country.

Groundnut Cultivation Cost

Groundnut Cultivation Cost

Overview of Groundnut Cultivation in India

In India, growing groundnuts is an essential agricultural practice and one of the world’s largest producers of groundnuts. Good soil, usually well-drained sandy loam or sandy clay, and sufficient rainfall (about 600–700 mm) throughout the growth season are essential to the cultivation process. 

In June and July, during the wet season, farmers mostly plant groundnut seeds. Groundnut plants have taproots and need frequent insect and weed removal. When the plants turn yellow, 90 to 120 days after seeding, harvesting often occurs. Because they are an excellent source of oil and protein, groundnuts are an important crop for both local and international use.

Land Preparation Costs for Groundnut Cultivation

Land preparation is an important step for groundnut cultivation in India. It involves ploughing, harrowing, leveling, and ridging the soil to create a suitable seedbed for sowing. Preparation costs depend on various factors, such as the type and size of the land, the soil condition, the availability of labor and machinery, and the cropping system. 

The average land preparation cost for groundnut cultivation in India is Rs. 2,650 per acre. This included Rs. 1,150 for ploughing, Rs. 480 for harrowing, Rs. 560 for leveling and Rs. 400 for ridging. The cost of land preparation may vary across different regions and seasons, depending on the local conditions and practices.

Cost of Seed and Planting Material

Groundnut is an important oilseed crop that can be grown in both the rabi and kharif seasons in India. The seed rate for groundnut cultivation is 80–100 kg per acre, depending on the variety. The cost of seed material is one of the major input costs, accounting for 26-47% of the total cost of cultivation. The average cost of seed material is Rs. 4,000 per acre. 

Other input costs include land preparation, sowing, weeding, fertilization, pest control, harvesting, and transportation. The average yield of groundnut is 15-20 quintals per acre, depending on the variety and management practices.

Fertilizer and Nutrient Management Costs

The recommended dose of fertilizers for groundnuts is 25 kg N, 50 kg P2O5, and 75 kg K2O per hectare, along with 60 kg of sulfur sludge. The nitrogen fertilizer should be applied in two splits, half as basal and half at the pegging stage. The phosphorus and potassium fertilizers should be applied as basal before sowing. The sulfur sludge should be applied on the soil surface after sowing and incorporated by hoeing.

In addition to these macronutrients, groundnuts also need micronutrients such as zinc, iron, and boron for the proper functioning of various physiological processes. Zinc deficiency can be mitigated by the application of 25 kg of ZnSO4 per hectare or foliar spray of 0.5%of the ZnSO4 solution. Iron deficiency can be managed by foliar spray of 1% FeSO4 solution on 30, 40, and 50 days after sowing. Boron deficiency can be corrected by applying borax 10 kg + gypsum 400 kg per hectare on the 45th day after sowing. The total cost of fertilizer and manure for groundnut cultivation is 2350 rupees per acre.

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Harvesting Peanut

Irrigation Costs for Groundnut Cultivation

The most common method of irrigation for groundnut cultivation in India is furrow irrigation, where water is allowed to flow into furrows or channels along the rows of groundnut plants. Furrow irrigation is simple and economical, but it has a drawback, which leads to water loss due to evaporation and surface runoff. 

Other methods of irrigation that can be used are drip irrigation and sprinkler irrigation. Drip irrigation is more efficient and water-saving than furrow irrigation, as it delivers water slowly and directly to the roots of the plants. Sprinkler irrigation is less efficient than drip irrigation, but it can be used in areas where the water table is high. Sprinkler irrigation distributes water over the entire field using sprinkler heads.

The cost of irrigation for groundnut cultivation in India depends on the method of irrigation, the water availability, and the input costs. According to one source, the cost of fertilization, which includes the irrigation cost, land revenue, land rent, electricity charges, cost of family labor, etc., is Rs. 4,200 per acre.

Costs Associated with Pest and Disease Management

In India, groundnut is a significant oilseed crop, but it is susceptible to numerous pests and diseases that lower its quality and yield. Some of the major pests are leafminers, tobacco caterpillars, gram pod borers, thrips, aphids, leafhoppers, white grub, and termites. Some of the major diseases are stem rot, collar rot, leaf spots, rust, and bud necrosis virus. Nematodes like Kalahasti and root-knot also cause damage to groundnut.

The costs of pest and disease management vary depending on the type and severity of the problem, the location and season of cultivation, the availability and efficacy of control measures, and the economic threshold level of the pest or disease. The average cost of pest and disease management for groundnuts in India is Rs 1200 per acre. This included the cost of seed treatment, foliar sprays, soil application, biocontrol agents, pheromone traps, neem products, and intercropping.

Labor Costs in Groundnut Cultivation

According to some sources, labor cost is one of the major input cost components in groundnut cultivation, along with seed cost. The percentage of labor cost in the total cost of cultivation may vary depending on the type of crop (irrigated or rainfed) and the region. Here are some estimates from different studies:

The total expenditure of groundnut production (labor bullock machine labor) cost is Rupees 7,900 per acre.The average labor costs in groundnut cultivation in India may vary widely depending on various factors. However, it is clear that labor is a significant part of the production process and requires careful planning and management.

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Fresh Peanuts Plants with Roots

Machinery and Equipment Costs

machinery/EquipmentAverage Cost in Rs
Seed Drill25,000

Post-Harvest Handling and Transportation Costs

Post-harvest handling costs include the expenses incurred for threshing, drying, cleaning, grading, and storing the groundnut pods after harvesting. These costs vary depending on the type and scale of operation, the availability and quality of equipment, the labor requirements and wages, and the climatic conditions. The average post-harvest handling cost for groundnut is Rs 1180 per acre. This accounted for about 7% of the total cost of cultivation.

Transportation costs include the expenses incurred for moving the groundnut pods from the farm to the market or processing unit. These costs depend on the distance, mode, and frequency of transportation, as well as the quantity and quality of the produce. Transportation costs also include losses due to spillage, damage, or theft during transit. The average transportation cost for groundnut is Rs 420 per acre. This accounted for about 2.5% of the total cost of cultivation.

State-Wise Groundnut Cultivation Cost Per Acre

StateCost Per Acre (Rs)
Tamil Nadu24,000
Andhra Pradesh23,000

Frequently Asked Questions About Groundnut Cultivation

What is the Average Yield of Groundnuts per Hectare in India?

The average yield varies, but it can range from 1,200 to 1,800 kg per hectare, depending on various factors.

What is the Major Use of Groundnuts in India?

Groundnuts are used for various purposes, including oil extraction, direct consumption, and as a source of animal feed.

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Groundnut cultivation cost per acre in India varies by state. On average, the production cost ranges from INR 20,000 to INR 30,000. States like Gujarat and Andhra Pradesh tend to have lower costs, while states like Maharashtra and Karnataka have higher costs. Farmers need to consider these factors when planning ground nut cultivation.


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