General Characteristics

• Castor is cultivated for the commercial importance of its oil.
• India is the world leader in castor seed and oil production and dominates the international castor oil trade
• The Indian variety of castor has 48 % oil content of which 42% can be extracted, while the cake retains the rest.
• India's castor production fluctuates between 6 to 9 lakh tons a year. In 2003-04, India's castor production was 8.04 lakh tons.
• Gujarat accounts for 86% of India's castor seed production followed by Andhra Pradesh and Rajasthan. Castor is mainly grown in Mehsana, Banaskantha and Saurashtra/Kutch regions of Gujarat and Nalgonda and Mahboobnagar districts of Andhra Pradesh.
• Castor is a Kharif crop. The sowing season of castor is from July to October and the harvesting season is from October to April.
• India annually exports around 2.0 - 2.4 lakh tons of commercial castor oil, 50,000 - 60,000 tons of castor seed extractions and 15,000 - 20,000 tons of castor seed.
• While 90 % of castor seed and oil in India is produced in Gujarat and Andhra Pradesh, the domestic consumption is dispersed all across the country. Castor seed and oil are also exported to various countries, especially European Union, US and Japan.
• The domestic ready market is quite well developed in Gujarat and Andhra Pradesh. The major mandi prices near the producing centers, upcountry prices and export prices from ports are available on a daily basis in public domain. The price dissemination is also up to the mark due to the export orientation of the commodity.

World Scenario

The world castor seed production fluctuates between 12 to 18 lakh tons. India is major producer with 64 % share, followed by China and Brazil with 23 % and 7 % share respectively.

Major Trading Centres

The major castor seed markets in Gujarat are Rajkot, Ahmedabad, Gondal, Gadwal, Bhabar, Disa, Kadi and in Andhra Pradesh - Jedcherla and Yemignoor.

Market Influencing Factors

• Variations in castor seed domestic acreage based on yield and price realization,
• Crop development based on monsoon progress in key growing regions
• Chinese and Brazilian crop size Comparative price with other vegetable oils in the domestic market,
• Upcountry demand of castor oil from the major cities, Export demand of castor oil from US, Europe and Japan
• The castor seed price tends to firm up during the planting period and eases down during the harvesting period. Prices tend to show inter-seasonal variation of almost Rs 200 - Rs 350 per quintal.
• Castor seed growers and crushers hoard the commodity before selling in expectation of better prices. Castor oil too can be kept in containers without spoilage for long period.