Mustard exports may fall 50%, castor oil to rise

The country's mustard meal export in 2007-08 (November-October) is likely to halve in the wake of lower mustard output this season and higher domestic consumption, an industry official told NewsWire18.

"This year, we'll be happy if we are able to export even 300,000 tonnes," the official from one of India's largest meal exporters said on the sidelines of an edible oil industry meet Sunday.

The official said India had exported about 600,000 tonnes mustard meal in 2006-07, most of it to South-East Asian countries. China is the largest buyer of Indian mustard meal.

The official said meal availability is seen tight this year as mustard output is expected to be about 15 per cent lower than a year ago.

Industry expects mustard output of about 5 million tonnes this rabi season, much lower than government estimates of about 7 million tonnes.

The official said he saw mustard output at about 5.5 million tonnes this year, as against last year's output of 7.4 million tonnes. Lower mustard output will lead to lower meal availability.

Each tonne of mustard produces about 650 kg mustard meal. Considering mustard output of 5.5 million tonnes this year, mustard meal output would be about 3.5 million tonnes.

"Even though meal availability is not a problem, there will be very little exportable surplus this year in the wake of higher domestic demand," the official said.

Mustard meal is used primarily as cattle feed and has started replacing soymeal, which is costlier. Soymeal costs about Rs 16,300 a tonne, while mustard meal is currently about Rs 11,000 in Uttar Pradesh.

Castor oil exports to rise 9.1%
Castor oil exports in 2008 are seen rising 9.1 per cent on year to 300,000 tonnes on better global demand for its industrial usage, Nimish Patel, Chairman of N K Industries, said on Monday.

"Castor oil export is rising amid higher global demand," Patel told NewsWire18 on the sidelines of a weekend oilseeds' conference in this tourist town.

"Castor oil export is growing at 10-15 per cent each year," Patel said. India's major export destinations for castor oil include European Union, Japan and the US.

Gujarat and Andhra Pradesh are the two main states producing castor seed, sown in the monsoon season between August and September and harvested from December.

Patel said exports of around 1,000 tonnes castor oil for China was contracted last week at $1,400 per tonne for delivery at Kandla port.

He said this year's export of castor derivatives, which include value added products, was likely to remain at previous year's level of 60,000 tonnes. India's annual castor oil and its derivatives exports are valued at Rs 1500 crore, said Patel, a leading castor trader of Ahmedabad.

The Central Organisation for Oil Industry and Trade on Sunday scaled up 2007-2008 (Jul-Jun) castor seed output to 910,000 tn compared with its last year's estimate of 850,000 tonnes. In 2006-07, India's castor seed output stood at 780,000 tonnes.

Harvesting in the southern state of Andhra Pradesh has been completed, while fresh arrivals of castor seed are continuing in the main markets of Gujarat with daily arrivals pegged at 75,000 bags (1 bag = 75 kg each).

"The arrivals are expected to be around this range till April," Patel said. Castor output in the main producing state of Gujarat is estimated at 700,000 tonnes in 2007-08 against 550,000 tonnes in the previous year.

Castor oil and its derivatives have a wide range of industrial use in lubricant, cosmetic and paint industries.

In Gujarat, castor seed in the spot market was quoted at Rs 522 per 20 kg on Monday, trading at similar levels as on Saturday.

Meanwhile, The country is likely to export about 50,000 tonnes groundnut oil in the current oil year to October, an industry official said.

He said the country had exported about 18,000-20,000 tonnes groundnut oil in 2005-06, but did not export any last year due to non-availability.

Indian traders have already contracted exports of about 25,000-30,000 tonnes groundnut oil and are likely to export another 20,000-25,000 tonnes this year, the official said on the sidelines of a weekend meet organized by Central Organisation for Oil Industry and Trade here.

"Exporters contracted most deals for groundnut oil export in November-December at about $1,500-$1,700 a tonne, as nobody expected global edible oil prices to rally to such high levels," the official said.

Global crude palm oil prices have risen to record high of over $1,500 a tonne and soyoil prices to about $1,600 a tonne on tight supplies, pushing up prices of other edible oils as well.

The official said fresh groundnut oil exports deals are expected at around 1,800-2,000 a tonne levels.

India exports groundnut oil mainly to European countries.