Commodity · Oilseed commodity
Groundnuts
Also known as: Peanuts, Earthnuts, Monkey nuts (in-shell)
Groundnuts, also called peanuts, are the harvested pods and kernels of Arachis hypogaea, traded in shell or shelled for edible use and for crushing. Because the pod matures in the soil, groundnuts carry a well-documented aflatoxin risk that governs how the commodity is handled.
Groundnuts are traded in two physically distinct forms that determine almost everything downstream. In-shell groundnuts retain the pod; shelled groundnuts are the kernels after the shell is removed. In-shell lots move to roasting and snack markets and, in some markets, to bird food; shelled kernels go to confectionery, peanut butter manufacture, and crushing. The forms carry different specifications, different freight economics, and different HS subheadings.
The groundnut is a legume whose pods develop below ground, and this single fact drives the commodity’s handling regime. Pods are lifted with soil contact, are prone to mechanical damage, and enter the chain at a moisture content that must be brought down promptly. Where that is not achieved, the risk that dominates groundnut trade — aflatoxin contamination — rises. No other attribute of the commodity shapes its commercial handling to the same degree.
In shell and shelled
The shell is a protective structure, and whether it stays on is a commercial decision with real consequences. In-shell lots are bulkier and cost more to move per unit of kernel, but the shell shields the kernel during handling and storage. Shelled kernels are denser to ship and are what most processors actually want, but they are exposed — once the shell is off, the kernel is vulnerable to mechanical damage, moisture uptake, and mould.
- In-shell groundnuts
- Pods traded whole, typically for roasting and snack markets; graded on pod appearance, fill, and freedom from damage as well as on kernel quality.
- Shelled kernels
- Kernels after shelling, graded on size and count, splits, and damage; the form bought by confectioners, peanut butter manufacturers, and crushers.
- Blanched kernels
- Kernels with the skin (testa) removed, a further processing step required by some food uses.
Market types — runner, virginia, spanish, and valencia among them — are traded as distinct articles because kernel size, shape, and roasting behaviour differ. A confectioner specifying large kernels and a crusher buying on oil content are not competing for the same lots.
Aflatoxin: the defining quality risk
Groundnuts are among the commodities most closely associated with aflatoxins, toxic compounds produced by certain Aspergillus species that can colonise the crop before harvest and continue to develop in inadequately dried or poorly stored lots. The association is well documented in the food-safety literature and is the reason groundnut supply chains are built around prompt drying, controlled storage, sampling, and sorting rather than around appearance alone.
Three points matter commercially. First, contamination is heterogeneous: it concentrates in a small proportion of kernels, which is why sampling design carries so much weight and why a clean sample does not certify a lot. Second, it cannot be reversed — a contaminated lot is managed by segregation and sorting, not repaired. Third, the risk is highest where drying is slow, storage is warm and humid, or kernels were damaged by insects or handling, which links this commodity directly to storage practice.
Uses and product pathways
Groundnuts occupy an unusual position: they are both an edible nut and an oilseed, and the split between the two depends on the market. Where a confectionery and peanut butter industry pays a premium for sound, sized kernels, edible use takes the best lots and crushing takes what does not make grade. Where those industries are smaller, a larger share of the crop is crushed outright.
- Edible use — roasted and salted nuts, confectionery, and peanut butter
- Crushing — groundnut oil and groundnut cake, produced together
- Feed — cake as a protein feed; substandard lots diverted from food use
- Seed — retained or certified for planting
Diversion of food-rejected lots into feed is a real commercial pathway, but it is not an escape from the aflatoxin question: feed materials are subject to their own jurisdictional rules, and the fitness of such lots is determined by the applicable feed authority.
Drying, storage, and sorting
Groundnuts come out of the ground wet and must be dried without delay — this is the single most consequential step in the chain, and drying that is too slow permits mould development while drying that is too aggressive splits kernels and cracks skins. Once dried, lots are held cool and dry, kept away from moisture re-uptake, and protected from storage insects, whose damage opens kernels to fungal colonisation.
Sorting is a quality operation with a safety dimension for this commodity in a way it is not for cereals. Removing discoloured, shrivelled, damaged, and mouldy kernels is how lots are brought toward the specification a buyer requires, and electronic and manual sorting are standard in edible chains. Colour and appearance are used as proxies for a risk that cannot be seen directly, which is exactly why they are proxies and not proof.
Relationships
Evidence-backed connections in the knowledge graph.
Harvested from
Stored using
Co-products
Valuable outputs produced at the same time and inseparably from the primary product — not waste.
- Groundnut CakeGroundnut cake is the protein-rich solid fraction left after oil is taken from groundnut kernels. It is a valued feed protein across South Asia and Africa, and the commodity’s aflatoxin risk follows it into the cake, making provenance and storage central to its trade.
- Groundnut OilGroundnut oil is the oil expressed or extracted from groundnut kernels, produced alongside groundnut cake. It is valued for frying stability and, in some markets, for the flavour retained by less refined grades.
Scope & limitations
Geographic scope: Global. Grade standards, aflatoxin regulation, and classification codes are jurisdiction-specific and versioned.
- This entry is reference information; it is not a grading determination, a food-safety assessment, or customs classification advice.
- No aflatoxin limits, sampling plans, test thresholds, or acceptance criteria are given here — these are set by food-safety and feed authorities and differ by jurisdiction.
- Market-type definitions and size/count conventions differ between markets and contracts; no figures are given.
- Producing and trading regions are given as broad groupings, without ranking and without volume figures.
Sources
This article draws on the following authoritative sources. See our sources & methodology for how they are selected.
- [1]FAO — Food and Agriculture Organization (opens in a new tab)Authoritative
Food and Agriculture Organization of the United Nations (FAO)
Cited for: Groundnuts as a traded commodity and aflatoxin as a recognised risk in the chain
- Type:
- Intergovernmental organization
- Jurisdiction:
- Global
- Accessed:
- 2026-07-12
- [2]FAOSTAT — FAO statistical database (opens in a new tab)Authoritative
Food and Agriculture Organization of the United Nations (FAO)
Cited for: Commodity item classification and in-shell reporting basis
- Type:
- Intergovernmental organization
- Jurisdiction:
- Global
- Accessed:
- 2026-07-12
- Authoritative
Cited for: Aflatoxins in groundnuts as a documented food and feed safety hazard
- Type:
- Government agency
- Jurisdiction:
- European Union
- Accessed:
- 2026-07-12
- [4]USDA — U.S. Department of Agriculture (opens in a new tab)Authoritative
United States Department of Agriculture (USDA)
Cited for: Groundnut trade forms, market types, and grading attributes
- Type:
- Government agency
- Jurisdiction:
- United States
- Accessed:
- 2026-07-12
- [5]IITA — CGIAR research center (tropical crop breeding) (opens in a new tab)High
International Institute of Tropical Agriculture (IITA)
Cited for: Groundnut post-harvest handling and aflatoxin management context
- Type:
- Research institute
- Jurisdiction:
- Sub-Saharan Africa / Global
- Accessed:
- 2026-07-12