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Castor Oil
India is a world leader inproduction of castor seed & meets a substantial part of the globalrequirement of castor oil. As the leading producer and exporter, India plays asignificant role in global castor oil sector. Indian production ranges between2.5-3.5 lakh ton per year. Indian variety of castor seed has an oil content of48% oil content out of which 42% could be extracted. Global output of castoroil is estimated to be around 5-5.5 lakh ton per year with India contributingmore than 50% of it. Global trade in castor is estimated to be over 300,000 tonper year on an average.
Castor oil is obtained bypressing the seeds, followed by solvent extraction of the pressed cake. CastorOil is one of the worlds most useful and economically important natural plantoils. India supplies 70% of the worlds requirements of castor oil.
Castor oil is unique amongvegetable oils and uniqueness is derives from the presence of a hydroxyl fattyacid known as ricinoleic acid (12- hydroxyl-cis-9-octadecenoic acid) whichconstitute around 90% of the total fatty acids of the oil. Castor Oil is alsodistinguished from other vegetable oils by its high specific gravity, thicknessand hydroxyl value. India is the largest exporter of Castor Oil. A major partof the castor oil produced in this country is exported and the value additiontakes place in the importing countries.
India exports Castor Oil mainlythrough Kandla Port in Gujarat in two forms - First Special Grade & CastorOil Commercial.
Export of castor oil duringApril- Dec. month 2009-10 2008-09
Qty. M.T. Bulk + Container Value Rs.Cr. Qty. M.T. Bulk + Container ValueRs.Cr.
April 17,295 76.78 46,048 233.80
May 32,938 153.58 46,528 277.51
June 26,325 123.25 27,205 158.80
July 23,465 109.41 35,055 210.75
August 32,014 151.59 36,840 223.47
September 31,200 156.41 8,882 57.95
October 25,056 131.39 39,600 265.30
November 29,572 155.57 9,769 72.25
December 22,298 125.51 312,972 87.79
Total 240,163 1183.5 262,899 1587.6
Source: SEA
The demand for castor oilderivatives is perennial in nature since they are indispensable to themanufacture of various products. Besides, as castor does not have a syntheticor any other alternative, it has an assured market. Domestic demand of CastorOil has unfortunately not kept pace with growth in castor seeds output. Developedeconomies are major user of castor oil.
The major castor oil markets in India are:
• Gujarat-Rajkot, Ahmedabad, Gondal, Gadwal, Bharbar
• AndhraPradesh- Jedcherla , Yemignoor
Market Influencing Factors in Castor oil Trade
• Cropdevelopment based on monsoon progress in key growing regions
• Domesticdemand for castor oil from the major cities & export demand of castor oil
• Variationsin castor seed domestic acreage, based on yield and price realization
• Indian,Chinese and Brazilian crop sizes
• Comparativeprice with other vegetable oils in the domestic market
• Thecastor seed price tends to firm up during the planting period and eases downduring the harvesting period. Prices tend to show significant inter-seasonalvariations
• Castorseed growers and crushers hoard the commodity before selling in expectation ofbetter prices.
Source :- www.nationalspotexchange.com
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