 "Castor seed prices up 10% amid strong export demand")
Low supply and high demand have pushed up castor seed prices to hit an upper circuit on the commodity exchanges over the past couple of trading sessions.
On the National Commodity and Derivatives Exchange (NCDEX), immediate delivery contract of castor seed hit a recent high of Rs 4,720 a quintal amid heavy buying by traders and exporters. Prices settled at Rs 4,671 a quintal for January delivery on NCDEX on Wednesday.
On December 5, the price quoted was Rs 4,329 a quintal — a hike of Rs 350-400 a quintal — nearly 10 per cent in less than a week.
“Castor, being a multi-delivery crop, delayed sowing hampers yield. Also, there are sporadic instances of pest attack in some districts, including Surendranagar and Ahmedabad,” said Biren Vakil, commodity expert.
Globally too, castor supplies are likely to remain tight. Currently, India is estimated to have castor seed inventory of around 400,000 tonnes, while the total demand including exports is likely to be 1.7-1.8 million tonnes.
“We expect castor seed exports to grow by 15-20 per cent this year as against last year’s 570,000 tonnes. This will further jack up the prices till March next year,” said a leading castor exporter from Palanpur.
On the National Commodity and Derivatives Exchange (NCDEX), immediate delivery contract of castor seed hit a recent high of Rs 4,720 a quintal amid heavy buying by traders and exporters. Prices settled at Rs 4,671 a quintal for January delivery on NCDEX on Wednesday.
On December 5, the price quoted was Rs 4,329 a quintal — a hike of Rs 350-400 a quintal — nearly 10 per cent in less than a week.
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Experts said the yield was expected to be lower at around 0.95 to 1 million tonnes (mt) this year, which is much less than expected 1.14 mt. Lower acreage and delayed sowing had hampered production.
“Castor, being a multi-delivery crop, delayed sowing hampers yield. Also, there are sporadic instances of pest attack in some districts, including Surendranagar and Ahmedabad,” said Biren Vakil, commodity expert.
Globally too, castor supplies are likely to remain tight. Currently, India is estimated to have castor seed inventory of around 400,000 tonnes, while the total demand including exports is likely to be 1.7-1.8 million tonnes.
“We expect castor seed exports to grow by 15-20 per cent this year as against last year’s 570,000 tonnes. This will further jack up the prices till March next year,” said a leading castor exporter from Palanpur.