Lower production estimate may boost castor price
According to the study, export of castor oil increased over 10 per cent per annum for this year from last two years and is likely around 5.80 lakh tonnes
 "Lower production estimate may boost castor price")
The Department of Agricultural Economics at JAU analysed the historical monthly price data of castor collected from Agricultural Produce Marketing Committee (APMC) at Patan. Based on the econometric analysis of castor price and in consultation with the National Agricultural Innovation Project, Domestic and Export Market Intelligence Cell, Tamil Nadu Agricultural University, Coimbatore, it has been noticed that the prices of castor may remain in the range between Rs 760 and Rs 860 per 20 kg from March to May this year. "The farmers must take note of this, take their own decision to store castor and sell after May 2014. Keeping the situation in view, if export opportunities continue to remain better, there are chances that prices may go up in future days," Maganlal Dhandhalya, associate research scientist at Department of Agricultural Economics in JAU, said.
Expecting less production and strong export demand supported by weak Indian rupee, castor price started rising from Rs 700 per 20 kg in first week of November 2013 and touched Rs 900 per 20 kg in third week of December 2013. Currently, it is priced at Rs 800 per 20 kg in various markets of Gujarat.
According to the study, export of castor oil increased over 10 per cent per annum for this year from last two years and is likely around 5.80 lakh tonnes. The domestic consumption is estimated to be about 1.50 lakh tonnes in 2013-14, which indicates that, total expected production of current will be utilized. Indian castor seed production declined from a record high of 2.29 million tonnes in 2011-12 to 1.96 million tonnes in 2012-13 and is further likely to fall about 1.64 million tonnes (as per second advance estimate dated 14-02-2014) in 2013-14, as the area under the crop shrunk from 1.47 million hectares in 2011-12 to 9,84,000 lakh hectares in 2013-14. This has been attributed to low castor prices of Rs 700 per 20 kg from March, 2012 over the last two years.