Junagadh varsity advises farmers to hold cumin, castor for few months

Report claims both crops have good prospects of exports during April and May

Junagadh Agriculture University (JAU) has advised farmers to hold the stocks of cumin and castor crops for the next few months to get better returns on their produce.

According to JAU report, both the crops have good prospects of exports during April and May which may increase the prices of cumin and castor in the coming days.

"If export opportunities continue to remain good, there are some chances that prices may go up in future. It is advisable for farmers to hold the crops for a while which may give good returns," said M G Dhandhalya, associate research scientist at department of agricultural economics, JAU.

Quoting second advance estimates, JAU report suggested castor production in the country likely to about 1.72 million tonnes for the year 2015-16.

In current financial year exports might be around 500,000 tonnes. The domestic consumption and derivatives exports of castor oil are expected about 200,000 tonnes. This requires crushing of about 1.66 million tonnes of castor seeds, which indicates that current year's production is almost at par with oil demand.

However, the castor prices, which was ruling around Rs 740 per 20 kg in December 2015 in various markets of Gujarat, has decreased to Rs 610 per 20 kg in February 2016 due to higher production estimates and weak global sentiments.

Dhandhalya said, "Due to some trading problems in futures contracts, report of higher production and economic crisis in china and some EU countries pulled down castor price in recent time. Hence, instead of selling castor below Rs 700 per 20 kg, farmers may wait for revival of the market."

Based on the econometric analysis, JAU study revealed that the prices of castor during March to May 2016 may remain in the range of Rs 640-720 per 20 kg.

Similarly for cumin, JAU has guided farmers to sell it after April this year as higher export opportunities and domestic demand may increase the price of the commodity.

"Cumin production in India expected to be about 375,000 tonnes is just sufficient to meet the domestic and current export demand. Last year's ending stock is lower; therefore cumin price likely to remain firm in ensuing season," said Dhandhalya.

Cumin prices which was ruling around Rs 2,000 per 20 kg in May 2014 in Gujarat, increased to about Rs 3,100 May 2015 and remained stable around Rs 2,900 till December 2015 and currently it is ruling around Rs 2,500 per 20 kg. The econometric analysis revealed that the prices of cumin during March to April may remain in the range of Rs 2,600 to 2,850 per 20 kg.