Gorakhpur peanut trade estimate far exceeds regulated market records
Traders estimate that Gorakhpur handles about 4,500 tonnes of peanut kernels each month, while the regulated market recorded only 1,510 tonnes from April through July. Tax officials are investigating more than ₹100 million in suspected billing and possible GST evasion exceeding ₹5 million.
Market data and trader estimates diverge
A wide gap has emerged between official records and traders’ estimates for the peanut-kernel business in Gorakhpur, India. Hindustan reported that the Naveen Mahewa regulated market recorded arrivals and sales of 380 tonnes in April, 270 tonnes in May, 210 tonnes in June and 650 tonnes in July. The four-month total was 1,510 tonnes.
Traders, however, estimate that more than 4,500 tonnes of peanut kernels are sold across Gorakhpur each month. The two figures do not measure exactly the same geographical scope: the official data cover the Naveen Mahewa market, while the traders’ estimate refers to business across the district. Even so, the scale of the difference has prompted questions about how much trade is passing through official market records.
The discrepancy also has direct revenue implications. The market committee charges a 1.5% fee on covered transactions. Any volumes sold outside the recorded system could therefore reduce fee collections and make it harder for authorities to track the physical movement, storage and sale of the commodity.
Tax inquiry expands beyond Gorakhpur
The Uttar Pradesh State Tax Department is separately investigating suspected GST evasion involving peanut-kernel transactions and allegedly false invoices. According to Hindustan, the inquiry has identified more than ₹100 million in suspicious billing and possible GST evasion exceeding ₹5 million. Investigators are examining transactions linked to traders in Shahjahanpur, other districts and West Bengal, extending the case beyond Gorakhpur.
More than 50 traders have received notices requesting documents covering purchases and sales, the source of the goods, transport records, electronic waybills and GST payments. Cold-storage operators have also been asked for details about stored consignments, the traders connected to them, storage periods and transportation. Officials are comparing the submitted records to determine whether invoices correspond to actual commodity movements.
Vehicle records raise questions about physical flows
One case described by Hindustan involved an electronic waybill showing that an empty vehicle was bound for Bihar, although the vehicle did not travel there. Questioning reportedly indicated that the goods had instead been unloaded at a cold-storage facility in Gorakhpur. A subsequent review of toll records found that several vehicles had not reached their stated destinations, strengthening suspicions that some purchases and sales may have existed only on paper.
Market secretary Dr Dilip Kumar Verma has asked the State Tax Department for information about the action taken so far and the firms and traders identified during the inquiry. He said the market authority would issue notices after receiving the complete data. Where violations are established, the authority may seek the 1.5% market fee and impose a penalty equal to ten times that amount. The investigation now links three sets of records—regulated-market entries, tax invoices and physical transport data—that will be central to determining the true size of Gorakhpur’s peanut-kernel trade.
