Castor seed turns bearish

The castor seed market has entered a bearish phase with the spot prices of the seed dipping to Rs 1,550 a quintal from about Rs 1,625 a quintal last month.

With China stopping imports from India and the domestic harvest slated for the end of September, the traders have taken a cautious stand.

"The market is bearish as of now. The demand has also declined from European countries. China, which imported a huge quantity off castor seed from India, has stopped the imports and is waiting for its new crop expected in September and October. It is a wait-and-watch situation as our sowing season is also round the corner," said Vithalbhai Udeshi, chairman, Jayant Agro-Organics, one of the largest exporters of castor oil in India.

China had imported about 80,000 tonne from India, about 30 per cent above the normal imports from India during the last quarter.

The crop in China had declined to 1.7 lakh tonne from 2.5 lakh tonne last year. Meanwhile, heavy rainfall is expected to cause damage to pulses, cotton and groundnut. This is likely to see many growers turning towards castor.

The result would be a glut in the market and further fall in castor seed prices, opine traders.

"A good season for castor is expected and prices are set to dip further. A clear picture of the crop will emerge only by September-end," added Kunal Thakker of Ashapura Corporation.