According to the reports, because of the low demand for castor seeds by China and Europe, it has led to a decrease in castor seed prices. On the NCDEX, the oilseed for January delivery had reduced by 3.4% to Rs 3,727 a quintal, while the February series shed 3.6% to Rs 3,811 a quintal.
As per the reports, India is the biggest exporter of castor oil, holding about 70% share of international trade and the major buying is done by China which manufactures sebacic acid to be sold to the rest of the world. In the domestic market, castor oil is being sold at Rs 8,000 per quintal and is mostly bought by paint and lubricant manufacturers. Castor oil, extracted from castor seed, and its derivatives have wide-ranging applications in the manufacturing of soaps, lubricants, hydraulic and brake fluids, paints, dyes, coatings, inks, cold resistant plastics, waxes and polishes, nylon, pharmaceuticals and perfumes.
According to Atul Chaturvedi, CEO of Adani Wilmar, at present there is no much demand for castor seeds by China and Europe and said that the current prices were reasonable. He also added that, at present castor seed supplies to Gujarat markets were at 15,000 bags of 75 kg each and the non-edible oilseed crop was sown in July-August and harvested December onwards till March with an average 46% oil recovery.
According to Kanubhai Thakkar, MD of Gokul Refoils and Solvent, currently export contracts are signed at $1,400 to $1,450 a tonne and there was a decrease in the export of castor seeds in China, Europe, Japan and US buyers. He also added that, castor production this year was around 13-14 lakh tonne with a carryover stock of 4.5 to 6 lakh tonne. In terms of castor oil, production was expected to be 5.5 lakh tonne and the company processes 1.5 to 1.75 lakh tonne castor oil annually.
Source: Economic Times