Castor arrivals start in Gujarat

Though bit delayed, castor arrivals have started in Gujarat. At present, around 7,000 to 8,000 bags are daily arriving in the market. The arrival of fresh crop seems to have applied breaks to soaring prices of castor and market players believe that prices are likely to go down as arrivals pick up.

Currently, Gujarat is witnessing daily arrival of 15,000 to 17,000 bags per day. Of which, new arrivals are 7,000 to 8,000 bags. The fresh crop hitting the market has turned the prices volatile. The spot price of castor touched a day high of Rs. 612 per 20 kg yesterday at Jogana near Palanpur, which is one of the major trading hubs in Gujarat. The price were quoted at Rs. 595 today.

Castor prices had tanked to Rs. 570 to Rs. 580 per 20 kg in couple of days back. "The prices were moving upwards but new arrivals have affected the rally," said Prakash Mehta, a castor trader based in Ahmedabad. With marriage season coming to an end, more and more farmers will dump their produce in the market. "The arrivals have just started and further increase will pressurise the prices of castor. We see prices going down in days to come due to higher arrivals," added Nilesh Shah, another castor trader from Ahmedabad.

The buyers are buying castor to meet their immediate requirement. "Castor buyers are refraining from purchasing the commodity at higher levels," Shah added. Castor arrivals have also started in Andhra Pradesh and Rajasthan. The output in 2009-10 will be crucial in determining price trend.