 "Castor seed output to decline 40% on low yield, acreage")
Castor seed output in India is likely to decline by 40 per cent this year on lower acreage and unfavourable climatic condition in major producing states at the beginning of the sowing season.
Traders estimate total availability at 1.4 million tonnes this year, as compared with 2.4 million tonnes in the previous year. The crop sown in September is harvested through picking of seed in five–six trenches, the first of which begins in January.
Sowing area was lower this year by 35-40 per cent, coupled with decline in estimated yield due to inconsistencies in the monsoon in major growing regions. Gujarat and Andhra Pradesh, the two largest growing states, witnessed shortage of rainfall during the sowing period.
Total output this year is estimated at 1 million tonnes as against 1.4-1.5 million tonnes in the previous year. With a carryover stock of 300,000 tonnes, total availability is expected to remain at 1.4 million tonnes.
The annual demand for castor seed is 1.8-1.9 million tonnes to extract oil for medicinal use. India meets 90 per cent of castor oil demand worldwide.
“It is well known to foreign buyers and multinational companies that Indian farmers are helpless, and export-dependent, hence they take undue advantage. International buyers have tied up with two-three large companies here for procuring castor seed from farmers at throwaway prices,” said a senior executive of a leading edible oil producer.
Last year, farmers sold castor seeds in the range of Rs 3,500–3,600 a quintal (equivalent to castor oil export price of $1,200–1,250 a tonne), whereas the fair price should have been Rs 6,000-7,000 a quintal, said Agarwal.
In 2011, at an availability of 2.4 million tonnes, castor oil was sold at $2,600-2,800 a tonne.
The industry, therefore, has urged the government to double its minimum support price to Rs 6,000–7,000 a tonne.
Castor seed price has jumped 10 per cent in the last two weeks.
Traders estimate total availability at 1.4 million tonnes this year, as compared with 2.4 million tonnes in the previous year. The crop sown in September is harvested through picking of seed in five–six trenches, the first of which begins in January.
Sowing area was lower this year by 35-40 per cent, coupled with decline in estimated yield due to inconsistencies in the monsoon in major growing regions. Gujarat and Andhra Pradesh, the two largest growing states, witnessed shortage of rainfall during the sowing period.
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“Farmers could not sow castor seed even in their usual area, resulting in lower acreage. Yield is also expected to remain lower. Consequently, castor seed output is estimated to remain lower this year,” said Manoj Agarwal, director, Shivam Oil Mills, a Palanpur-based (Gujarat) edible oil producer and retailer.
Total output this year is estimated at 1 million tonnes as against 1.4-1.5 million tonnes in the previous year. With a carryover stock of 300,000 tonnes, total availability is expected to remain at 1.4 million tonnes.
The annual demand for castor seed is 1.8-1.9 million tonnes to extract oil for medicinal use. India meets 90 per cent of castor oil demand worldwide.
“It is well known to foreign buyers and multinational companies that Indian farmers are helpless, and export-dependent, hence they take undue advantage. International buyers have tied up with two-three large companies here for procuring castor seed from farmers at throwaway prices,” said a senior executive of a leading edible oil producer.
Last year, farmers sold castor seeds in the range of Rs 3,500–3,600 a quintal (equivalent to castor oil export price of $1,200–1,250 a tonne), whereas the fair price should have been Rs 6,000-7,000 a quintal, said Agarwal.
In 2011, at an availability of 2.4 million tonnes, castor oil was sold at $2,600-2,800 a tonne.
The industry, therefore, has urged the government to double its minimum support price to Rs 6,000–7,000 a tonne.
Castor seed price has jumped 10 per cent in the last two weeks.