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The effect of grass mulch on groundnut yield and shelling percentage has been studied at three locations in the Gambia. Yield increases have been mainly attributed to physical factors but residual increases were found for only one year after application. Mulching gave rise to significant increases in exchangeable soil potassium, in percentage potassium in the plant at harvest and in total potassium uptake by the plant. In the absence of response to potassium fertilizer, increased uptake was ascribed to luxury consumption. It was suggested that reduced shelling percentage from mulched plots was due to potassium-calcium antagonism.