India's castorseed production in 2009-10 is projected to fall by 4 per cent in the wake lower acreage and scanty rainfall. The Castor Crop Survey: 2009-10, carried out by Nielsen India on behalf of The Solvent Extractors' Association of India (SEA), has pegged India's castor output at 9.34 lakh tonnes as against 9.76 lakh tonnes in 2008-09.
The survey, which was released during Global Castor Conference 2010 on Saturday at Ahmedabad, attributes reduction in acreage and inadequate rainfall in major castor growing state namely Gujarat, Rajasthan and Andhra Pradesh for the decline in output.
The total castor seed acreage in India during 2009-10 stood at 7.40 lakh hectares, which shows a dip of 10 per cent over 8.26 lakh hectares in 2008-09. However, the good news for the industry is that the average yield for the current fiscal is estimated to rise by 7 per cent at 1216 kg per hectare as against 1180 kg per hectare in previous year.
The overall rainfall in Gujarat, Rajasthan and Andhra Pradesh this year was lower by 31 per cent, 43 per cent and 10 per cent respectively than the average rainfall in the respective states.
Despite a 3 per cent fall in castor acreage, Gujarat is likely to witness 1 per cent increase in output mainly because of higher yield expected this year. The apex industry body has pegged castor production in Gujarat at 7.34 lakh tonnes as compared to 7.25 lakh tonnes in corresponding fiscal. Rajasthan is estimated to have lower production at 1.26 lakh tonnes and Andhra Pradesh 44,000 tonnes in 2009-10.
Castorseed experts expect the price of the commodity to remain higher than the current prices in the wake of emerging economies such as India and China doing well in terms of growth and positive performance of matured economies like USA and Europe. "In case of castor seed prices, we see downside room of 2 to 3 per cent, while upside potential for castor price is 12 to 15 per cent," Murali Krishna, CEO of Hyderabad-based Transgraph Consulting Pvt Ltd said at the conference, which was organised by SEA.
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Similarly, the gobal castorseed production, too, is estimated to plummet at 13.24 lakh tonnes in 2009-10 as against 14.05 lakh tonnes in 2008-09 following lower castor acreage in India and China.
"We estimate world production of castor in 2009-10 to fall by around 1 lakh tonnes. Excess dryness in weather led to fall in area under castor cultivation across India and China," Krishna added.
As per the data provided by SEA, the castor acreage is projected to be lower at 13.83 lakh hectares in 2009-10 as compared to 14.69 lakh tonnes in 2008-09. India, the largest castor producer country, China and Brazil have seen acreage going down this year.