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Kapasia khalli
 
Kapasia khalli, known as cottonseed oil cake the world over, is the byproduct when cottonseed is crushed for extraction of oil. Once cottonseed was largely wasted, but now it finds its way into food for people, feed for livestock, fertilizer and mulch for plants, fibre for furniture padding, and cellulose for a wide range of products. However, kapasia khalli is mainly used for cattle feed and is a good protein source for ruminants in cotton-producing areas like India, China and the U.S. In fact, it is the least expensive protein source of in some regions of India. Cotton seed oil cake is either used directly or as an ingredient for the production of compound cattle feed in large industrial units.

Different types of cottonseed meals are the byproduct of different types of cotton oilseed extraction methods. Thus there is a wide range of cottonseed meals differing in their protein, fibre and oil content. The top 5 cottonseed meal producers are China, India, Pakistan, Brazil and the U.S. These countries account for almost 80% of world production and consume 75% of this production as feed. Cottonseed meal is the third most commonly produced oilseed meal in the world, after soya bean meal and rapeseed meal.

Undecorticated cake is preferred by Indians for feeding cattle. Undecorticated cake has a higher oil content, which is obtained when cottonseed is subjected to traditional processing of oil extraction. Decorticated cake has a lower oil content, being produced by scientific processing.

Cottonseed meal is susceptible to mold development when it is too wet, and to dust explosion when it is too dry. Moisture content should be monitored and kept between 5% and 11%. Storage temperature should be between 5°C and 25°C. In tropical areas, the temperature of cottonseed meal may rise above 55 °C, creating a high risk of ignition.

The realities of the market call for efficient risk management techniques that are important for participants, such as producers, exporters, marketers, processors, and SMEs. When the future is unknown, modern techniques and strategies, including market-based risk management financial instruments like ‘Kapasia Khalli Futures’, offered on the MCX platform can improve efficiencies and consolidate competitiveness through price risk management.
 
MARKETS INFLUENCING FACTORS
  • Variations in cotton production and its effect on cottonseed, meal and oil production in the country.
  • The arrival of cottonseed for crushing from the ginning centres of the country.
  • Comparative price with other oilseeds, oil and meal in the domestic market.
  • The demand from the cattle-feed industry, which is the major consumer of cottonseed meal.
 
For more information, please visit the documents on the right-hand margin
 
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