Current Market Developments:
- As shown in the adjacent Castor seed price trend chart, prices have remained range bound with slight weak tone as current demand is limited in markets against steady supplies. Castor seed crushing mill demand is subdued as castor seed supplied is having higher moisture levels. Supplies in most of the spot markets of Gujarat have remained high as farmers and traders are selling their stocks in good numbers.
- Demand from bulk buyers and exporters have also remained weak. As per the Solvent Extractors Association of India, Castor oil exports during Apr-July 2022-23 have remained lower by around 15 percent at 2,40,106 metric tonnes as compared to 2,81,606 metric tonnes last year same period.
- As per market sources, around 40,000 tonnes castor oil export are expected in August and between September to December around 80,000 tonnes exports are expected and also local consumption of around 12,000 tonnes. Overall, if we add up all around 2.10 lakh tonnes castor oil will be required and for that around 60 lakh bags of castor seed would be required till December.
- As per the Ministry of Agriculture 04th advance estimates, Castor seed production 2021-22 estimated lower by 2 percent at 16.11 lakh tonnes as compared to 16.47 lakh tonnes during 2020-21.
- Good monsoon rainfall and good returns has encouraged farmers for higher Castor acreage this season. The overall All India Kharif season acreage under Castor has increased significantly by 26 percent at 6.51 lakh hectares as compared to 5.16 lakh hectares. The current crop acreage in north Gujarat and Saurashtra key producer of castor crop is good and also the crop health is excellent.
- Higher acreage is reported from Gujarat by 23 percent at 4.66 lakh hectares as against 3.78 lakh hectares. In Rajasthan acreage is reported higher by 46 percent at 1.49 lakh hectares as compared to 1.02 lakh hectares. Higher acreage is also reported from Andhra Pradesh by 41 percent at 0.24 lakh hectares as against 0.17 lakh hectares.
Castor Seed Price Trend Vs Seasonality at Key Markets
Castor Seed Area, Production and Yield: India & Major States
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