High acreage may lift castor output by 16%

Castor production in the country is estimated to jump by around 16 per cent in 2007-08 on high acreage. Experts and analysts believe that lower production in Brazil and China means healthy demand of Indian castor in the global market.

According to a survey conducted by AC Nielsen ORG-MARG on behalf of Solvent Extractors Association of India (SEAI), the total castor seed production in the current crop year is estimated to be around 910,000 tonnes against 783,620 tonnes registered a year ago.

The survey, released today at an international seminar on castor seed and its value-added products in Ahmedabad, also revealed that the average yield of castor for the year was expected to surge by 8 per cent to 1,216 kg a hectare compared with 1,123 kg in 2006-07.

"The increase in area under castor seed cultivation in Gujarat and Rajasthan has also helped the country to clock higher castor production this year," said Naresh Pandekar, director, AC Nielson ORG-MARG, who released the survey. Total area under castor cultivation in the country in 2007-08 has risen by 7 per cent to 748,000 hectares from 698,020 hectares a year ago.

India is the biggest castor seed producer and meets more than 75 per cent of the world requirement. The country earns Rs 800 crore by exporting castor oil and derivatives. It expects to further increase its share in the global market in the wake of declining castor production in countries such as China and Brazil.

"These countries are shifting to other non-edible oils, which will further boost the demand of Indian castor in the global markets," said Suresh Akhineni, senior analyst, TransGraph Consulting, which is headquartered at Hyderabad.

Expert present at the seminar were of the view that despite India being the world leader in castor production, value addition to castor and its derivatives has not picked up in the country. Unlike Brazil, Indian castor industry is more commodity-oriented.

All the experts and industry players unanimously emphasised the need to focus on more value-addition in the castor and derivative industry. According to the industry estimates, derivative market is likely to grow to $500 million in near future.

The global output of castor seed in 2008-09 is pegged at 1.45 million tonnes.