Increased demand from markets abroad, especially China, has fuelled prices of castorseed and castor oil in the country. The spot prices of castor have risen sharply by Rs 70-100 in various markets, while castor oil prices have increased by $100 a tonne within a month.
According to traders, the spot price increased to Rs 675-700 per 20 kg from Rs 600 per 20 kg a month back.
“Last fortnight saw prices a substantial rise in prices. On June 15, the price was Rs 637 per 20 kg, which increased to Rs 709 on July 2,” said Nilesh Shah, an Ahmedabad-based trader.
Castorseed prices have surged following spiralling prices of castor oil, which rose to $1,550 a tonne FoB at Kandla port from $1,450 a tonne month ago.
“Increased demand for castor oil from overseas markets, especially China, Europe and the US pushed prices up, which subsequently resulted into a rise in castorseed prices. Every month 40,000 tonnes castor oil and 5,000-8,000 tonne castor derivatives leave for foreign shores from India,” said Nimish Patel, chairman and managing director, NK Industries, Ahmedabad-based leading manufacturer and exporter of castor oil and its derivatives.
“With shortage of castor in market, we expect castor oil prices to rise to $2,000 a tonne,” he added. However, there are other who say despite the beginning of July, castor arrivals are on and good monsoon will further help put prices in check.
Recent price rise augurs well for castor sowing this kharif season. “Surge in spot prices at present will help increase castor acreage in the country,” said BV Mehta, executive director, Solvent Extractors’ Association of India (SEA).
It may be mentioned here that India witnessed lower castor output in 2009-10, which led to a fall in production across the world as India is the largest producer of castorseed. The Castor Crop Survey of 2009-10, carried out by Nielsen India on behalf of SEA estimated India’s castor output at 934,000 tonnes in 2009-10 as against 976,000 tonnes in 2008-09.
The production dipped four per cent in 2009-10 due to scanty rainfall and lower acreage. However, the yield in India increased seven per cent.
