How Indian Peanuts Are Gaining from US Tariffs
Indian peanut exporters are seeing surprising benefits from recent shifts in global trade, especially as US peanut exports face new hurdles. Since the US introduced a 25% tariff on imports from key trade partners, including China, Canada, and Mexico, the peanut market has become more complicated for American exporters. In turn, Indian peanut producers are finding unexpected advantages.
Demand for peanut oil has surged by approximately 20% compared to last year as buyers pivot away from alternatives like sunflower and palm oil. This shift boosted the demand for Indian peanuts, especially from China, driving ground-level peanut prices in India up by approximately 4-5% in recent weeks. Traders are closely watching these price movements, anticipating further market shifts as China’s appetite for peanuts remains strong.
Meanwhile, Argentina and Brazil are intensifying competition through aggressive pricing strategies. Argentina has significantly lowered peanut prices by around 15% compared to the previous season, significantly pressuring competitors who have maintained steadier pricing structures, while Brazil, despite mixed results from recent harvests, continues to export strongly in both peanut and peanut oil markets.
China’s role in the peanut market can’t be overlooked. Its demand fluctuations, often driven by seasonal consumption peaks and shifts in consumer preferences, have historically influenced global pricing by as much as 10-15% within short periods. Currently, China’s increased purchasing activity has directly boosted prices and demand for peanuts from India, highlighting its continued influence on global trade.
With India benefiting indirectly from US trade tensions, American exporters must navigate this new complexity carefully. Businesses involved in peanut trading should closely monitor these shifting patterns to remain competitive.
Sources
Mundus Agri. (2025, March 17). Peanuts: Perplexing trade dynamics. Retrieved from https://www.mundus-agri.eu/news/peanuts-perplexing-trade-dynamics.n34626.html
Reuters. (2025, March 4). Trump triggers trade war, price hikes with tariffs on Canada, China, and Mexico. Retrieved from https://www.reuters.com/world/trade-wars-erupt-trump-hits-canada-mexico-china-with-steep-tariffs-2025-03-04/
Cardassilaris. (2025). Navigating 2024: Key trends and challenges in the global peanut market. Retrieved from https://www.cardassilaris.com/news/navigating-2024-key-trends-and-challenges-in-the-global-peanut-market