Groundnut in short supply despite good output and farmers hold on to stocks as seeks better prices. While govt has allowed bulk exports of groundnut oil, edible oil companies are finding it difficult to make a dent in the export market. Domestic prices are high due to short supply of groundnut, which in turn has made Indian groundut oil prices unviable for exports. India had exported about 10,000 tonnes of groundnut oil in consumer packages last year. The country produces about 0.3-0.35 million tonnes every year, and has potential to export about 40,000-50,000 tonnes in bulk, according to SEA. Despite good groundnut production this year, farmers are not selling the commodity in large amounts, in order to fetch better prices. The agriculture ministry estimates groundnut production this year will reach 8.47 million tonnes, up 26% from last year 6.73 million tonnes.