Current Market Developments:
- Since last week, Castor seed prices in most of the domestic spot markets of Gujarat and Rajasthan have improved as steady demand was noted from castor seed processing mills. Castor seed prices in Deesa remained higher by 0.89 percent, at Jodhpur prices remained higher by 1.69 percent, Kadi prices remained higher by 1.22 percent and at Mehsana prices were higher by 1.95 percent.
- The current daily demand in Gujarat stands at around 60,000 to 65,000 bags daily each weighting 70-75 kgs, while the average arrivals of around 45,000 to 47,000 bags registered. As per trade sources, the plants in Saurashtra and Banaskantha were not receiving castor seeds as per requirements. Moreover, the trade sources are also of the opinion that the overall castor crop acreage in Gujarat and Rajasthan is likely to decline by around 10-12 percent as deficient rains in the first fortnight of August is reported from most parts of Gujarat and Rajasthan.
- As per trade sources, cyclones in the month of June impacted exports as Castor oil exports from India remained around 65,000 tonnes during July and are likely to decline to around 45,000 to 50,000 tonnes in August month as subdued import demand are noted from China and other European nations.
- Excess to large excess rains received during July month, encouraged farmers for higher Castor acreage this season. As per the Ministry of Agriculture latest data, the current kharif season Castor seed acreage in India has increased by almost 8 percent compared to last year.
Castor Seed Price Trend Vs Seasonality at Key Markets
Current Kharif Season Castor Acreage
Farmers of Andhra Pradesh, Gujarat and Rajasthan have increased the acreage under Castor crop during the current kharif season as normal to excess rainfall recorded in major castor growing belts in these states during July month. In Andhra Pradesh the Castor crop is at vegetative stage and crop conditions is good. Sowing operations are in progress in Gujarat and in most of the places the early sown crop is in germination stage. As per the Ministry of Agriculture latest data, the overall castor crop acreage India registered an 8 percent increase at 6.479 lakh hectares as compared to 6.003 lakh hectares covered during the same period last year. However, market sources are of the opinion that clear picture on sowing is likely to emerge by August end and the overall kharif castor seed acreage in Rajasthan & Gujarat is likely to decline by 10 to 12 percent.
Castor Seed Area, Production and Yield Estimates: India & Major States
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