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| Castor prices slide as farmers offload old stock |
| Kalpesh Damor / Mumbai/ Ahmedabad Sep 29, 2009, 00:56 IST |
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In wake of farmers offloading old stock of castorseed ahead of new crop arrival, castor prices have started easing. The prices have come down to Rs 510 to Rs 525 per 20 kg, which had touched a high of Rs 540 per 20 kg.
Major castor trading centers such as Banaskantha district are witnessing arrival of 20,000 to 22,000 bags (one bag weighing 75 kg) of old castor stock, which, according market players, is quite high.
"New crop has arrived in Andhra Pradesh market and new arrivals in Gujarat will begin in November-December. Farmers have started selling their old stock, which resulted into reduction in spot prices of castor in the state", said Pravin Thakkar of Ahmedabad Commodity Exchange.
"The prices have declined by Rs. 100 per quintal. The mill delivery prices of castor in Gujarat have eased to Rs. 2,625 per quintal", added another city-based castor trader.
According to market players, castor prices touched a peak of Rs 540 per 20 kg in the year 2008-09. Current price level of Rs 525 is still a good deal as prices may face pressure with increase in new arrivals.
Marketmen expect no rise in castor output this year following erratic rainfall. "Castor production in 2009-10 likely to be same as that of 2008-09", traders said. The Solvent Extractors Association of India (SEA) had estimated castor crop 9.76 lakh tonnes for the year 2008-09. Following
The apex body was forced to cut the estimate last year due to heat wave adversely affecting castor yield. Originally, it had estimated castor crop size of 11 lakh tonnes.
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