Castor plant (Ricinus communis) is grown in arid and semi-arid regions. It is cultivated in 30 different countries on commercial scale, of which India, China, Brazil, Russia, Thailand, Ethiopia and Philippines are major castor seed growing countries which accounts about 88% of the world's production. In India it is a kharif crop, sowing in July-August and arrivals from December onwards till March. Gujarat is the chief producing state, having a share of 86% of domestic production, followed by Andhra Pradesh and Rajasthan. Bag packed of castor seed contains 75kg by weight.
Scenario
Castor is a non-edible oil seed crop; basically a cash crop, with average 46% oil recovery. Castor seed production in India is around 9-10 lakh MT. Castor oil (extracted from castor seed) and its derivatives have vast and varied 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. Castor oil is the largest vegetable oil exported out of India. India is the biggest exporter of castor oil holding about 70% share of the international trade in this commodity followed by China & Brazil.
Future Prospects
Castor seed due to its high oil content has its various uses. The supply of castor seed and its derivatives is highly fluctuating. Any change in the production trend in any of producing countries leads to a change in the level of the world production. The growing castor-based bio-fuel industry is also resulting in the increasing demand pressure on castor seed.
Factor Influencing Prices
NCDEX Castor Seed Future
Castor seed have considerable price volatility and that the export realizations of castor oil have also vacillated between years, Exchange traded castor seed futures are ideal for price risk management needs of the processors, exporters and end users. Those with no natural exposure to castor seed trade can also benefit by undertaking 'cash-and-carry' arbitrage and 'calendar spread'. Speculators can take directional view on future prices and accordingly take positions in castor seed futures.
Scenario
Castor is a non-edible oil seed crop; basically a cash crop, with average 46% oil recovery. Castor seed production in India is around 9-10 lakh MT. Castor oil (extracted from castor seed) and its derivatives have vast and varied 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. Castor oil is the largest vegetable oil exported out of India. India is the biggest exporter of castor oil holding about 70% share of the international trade in this commodity followed by China & Brazil.
Future Prospects
Castor seed due to its high oil content has its various uses. The supply of castor seed and its derivatives is highly fluctuating. Any change in the production trend in any of producing countries leads to a change in the level of the world production. The growing castor-based bio-fuel industry is also resulting in the increasing demand pressure on castor seed.
Factor Influencing Prices
- Consumption and export pattern
- Estimated output based on the acreage and weather conditions and pest infestation etc
- Leftover stocks from the previous years production after meeting the demand
- Government policies and intervention
- Shifting cropping patterns in producing countries
NCDEX Castor Seed Future
Castor seed have considerable price volatility and that the export realizations of castor oil have also vacillated between years, Exchange traded castor seed futures are ideal for price risk management needs of the processors, exporters and end users. Those with no natural exposure to castor seed trade can also benefit by undertaking 'cash-and-carry' arbitrage and 'calendar spread'. Speculators can take directional view on future prices and accordingly take positions in castor seed futures.
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