Post on 01-May-2018
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Castor (Ricinus communis L.) is a non edible oilseed, belonging to the Euphorbiaceae family. India is the
leader in global castor production and dominates in international castor oil trade. The Indian variety
of castor has an oil content of 48%. Out of 48% about 42% of oil is being extracted and the cake
retains the rest. The Castor seed products have widespread application in many industries like Paint,
Lubricant, Pharmaceutical, Textiles, etc.
Seasonality
Castor is a perennial crop but grown as an annual for economic purpose. Castor grows well in
tropical conditions. It grows best in heat and humidity. The crop duration is 4-5 months. In India, it
is sown in July/August and harvesting commences around January/February. The arrivals in the
market start from January onwards till mid of May.
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Gujarat
Andhra Pradesh
Sowing Growth stage Harvesting
Processing of castor seed
Castor seed harvested from field is dried till the pods open. Seeds are hulled by using de-hullers or
by hand to remove the seed from the pod. Seed contains about 50 percent of oil by weight.
Extraction of oil from castor seeds is done in a manner similar to that for most other oil seeds. The
ripe seeds are allowed to dry, when they split open and discharge the seeds. These seeds are cleaned,
cooked and dried prior to extraction. Cooking is done to coagulate protein (necessary to permit
efficient extraction), and to free the oil for efficient pressing.
Scenario of Castor Seed
The first stage of oil extraction is pre-pressing, using a high pressure continuous screw press – called
the expeller. Extracted oil is filtered, and the material removed from the oil is fed back into the
stream along with fresh material. Material finally discharged from the press, called cake, contains 8 to
10 percent oil. It is crushed into a coarse meal, and subjected to solvent extraction with hexane or
heptane.
Process flow chart
Uses
Castor oil and its derivatives are extensively used in the manufacture of
� Surfactants
� Specialty soaps
� Coatings
� Lubricants
� Plastizers
� Paper inks
Cook with steam and mechanically expel
Degumming & Decanting
Castor seed
First pressed castor oil
First pressed degummed (FPD)
Castor oil - FPD Castor oil commercial grade
Global Scenario
Global castor seed production is almost stagnant around 10-14 lakh tonnes in the past 7-8 years.
Output touched all time high of 15 lakh tonnes during 2005 as production has significantly increased
in India. Yield has drastically declined during 2006 and reflected in total output. India is largest
producer of castor seed and constitutes about 64% of total global production. Any changes in area
and yield in India has major impact on global castor output.
World Area, Production and Yield of Castor seed
0
2
4
6
8
10
12
14
16
2001 2002 2003 2004 2005 2006
Are
a &
Pro
duction
800
850
900
950
1000
1050
Yie
ld
Area(Lakh Ha) Production(Lakh Tonnes) Yield
Percentage share of Castor seed production
India
64%
China
21%
Brazil
8%
Others
7%
Global castor oil consumption
Although India produces major percentage of castor oil, its domestic consumption is limited. China
is the major consumer of castor oil, which consumes about one third of total production. Other
major consumers are Europe, India and Brazil.
Castor seed oil consumption
China
32%
Brazil
10%
EU
24%
India
15%Japan
4%
USA
7%
Others
8%
Indian Scenario
Castor seed production has gradually increased in the past few years. India recorded highest output
of nearly 10 lakh tonnes during 2005 with increased yields. Area is almost stagnant in the past few
years, however, increased yields of castor seed contributed to higher output. Castor seed has
recorded highest yield of 1216 kg per hectare in previous year. The sufficient rainfall and irrigation
sources especially in Gujarat have improved the yield in India.
India Area and Production of Castor seed
0
2
4
6
8
10
12
2001 2002 2003 2004 2005 2006 2007
Are
a &
Pro
duction
600
700
800
900
1000
1100
1200
1300
Yie
ld
Area(Lakh Ha) Production(Lakh tonnes) Yield(Kg/Ha)
Castor seed production in India
Gujarat
71%
Rajasthan
16%
AP
9%
Other States
4%
Cultivation of castor seed mainly confined to western states like Gujarat and Rajasthan both
together contributes 87% to total production. Gujarat has the largest share in India production with
71% followed by Rajasthan (16%). Apart from these two states, it is also grown in southern state of
Andhra Pradesh, which accounts for 9% of the total production.
Export of castor seed oil by India
India is largest exporter of castor seed oil as it is largest producer of the seed. Annually it exports
about 1.8-2.0 lakh tonnes of castor seed oil and receives huge foreign earnings. Export volumes have
marginally declined in the past three years even as output has increased during same period.
Appreciating Rupee has affected the export quantities, however, higher export prices provided more
earnings in terms of value. India exports more than 80% of total castor seed output in the form of
oil.
Export of Castor seed oil by India
0.0
0.5
1.0
1.5
2.0
2.5
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Quantity
(M
T)
400
500
600
700
800
900
Valu
e(R
s.c
r)
Quantity(Lakh MT) Value (Rs.cr)
Source: seaofindia
Note: only through Mumbai and Kandla ports and 2007-08 data till March 2008
Castor seed meal is another major derivative of castor seed exported by India. This oil meal exports
have increased 4-5 times in the past five years. India exported record oil meal of 3,30,475 tonnes
during 2007-08 up from 65,550 tonnes shipped in 2003-04.
Export of Castor seed oil Meal by India
0
50000
100000
150000
200000
250000
300000
350000
2003-04 2004-05 2005-06 2006-07 2007-08
MT
Current production scenario
Gujarat is largest producer of castor seed in India and other major producers are Rajasthan and
Andhra Pradesh. It contributes about 70% of total domestic output. Output is estimated around
9.09 lakh tonnes in 2007-08, up by 16% from previous year. Yield has been increasing significantly
along with area especially in Gujarat has resulted into bumper harvest of the crop last year. Area
under castor seed has increased by whooping 26% in 2007-08 to 3.54 lakh hectares. Gujarat has
highest yield with 1838 kgs per hectares. Higher rainfall last year mainly in western parts of the
country and improved irrigation facilities in these two major states led to sharp rise in output.
Gujarat has about 20 castor seed processing mills and major hub for castor seed industry.
State–wise Area, Yield and Production of Castor seeds in All India (2007-08)
District Estimated Area
Under Crop* ('000 ha.) Estimated Production*
( '000 tonnes) Estimated Yield *
(Kg/ha.)
2006-07 2007-08
% Change 2006-07 2007-08
% Change 2006-07 2007-08
% Change
Gujarat 281.59 354.33 26 494.81 651.22 32 1757 1838 5
Rajasthan 114.9 118.01 3 135.24 142.88 6 1177 1211 3 Andhra Pradesh 248.84 232.56 -7 113.57 83.13 -27 456 357 -22
Other States 52.69 43.5 -17 40 32.63 -18 759 750 -1
Total 698.02 748.4 7 783.62 909.86 16 1123 1216 8
Source: www.seaofindia.com
Market influencing factors
♦ Sowing and progress of south-west monsoon in western parts of the country
♦ Production of castor seed in India and also in China and Brazil
♦ Arrivals pattern in spot markets
♦ Export demand for Indian castor oil and exchange rate
♦ Prices of other edible oils
Price analysis
Castor seed prices have rallied by about 87% in the last two years and touched all time high of
Rs.525 per quintal. Prices were almost range bound around Rs.250-350 prior to 2006. Bullish trend
started from second half of 2006 and prices never saw back. Strong export demand for castor oil
and bullish tone in other oils including crude oil, soy oil and mustard oil supported the sharp rise in
prices. Soy oil prices have gained by around 85% and crude oil prices moved up by more than 70%
in the same period.
Castor seed Spot prices (NCDEX Deesa)
200
250
300
350
400
450
500
550
7/2
2/0
5
9/2
2/0
5
11
/22
/05
1/2
2/0
6
3/2
2/0
6
5/2
2/0
6
7/2
2/0
6
9/2
2/0
6
11
/22
/06
1/2
2/0
7
3/2
2/0
7
5/2
2/0
7
7/2
2/0
7
9/2
2/0
7
11
/22
/07
1/2
2/0
8
3/2
2/0
8
Price p
er Q
tl
Factors to be watched out
♦ Production during 2007-08 has been estimated at 9.09 lakh tonnes increased by 16%
compared to last year
♦ Gujarat is largest producer with production of 6.5 lakh tonnes in 2007-08 and major hub for
castor seed industry
♦ Carry forward stocks were negligible due to low output last year
♦ India has exported 1.7 lakh tonnes of castor seed oil in 2007-08 compared to 1.9 lakh tonnes
in last year (till March 2008)
♦ Prices have gained by 46% in last one year
♦ Export demand remain strong especially from China
♦ Export earnings have affected by appreciating Rupee in the last one year
♦ Export prices are quoting around $1400 per MT (FOB)