Lower domestic prices push castor oil exports up by 9%

Castor oil exports climbed by almost 9% during April and February 2015-16 on the back of lower domestic prices. According to industry sources, lower prices of seed in the domestic market, coupled with weak exports in the previous year led to a rise in castor oil exports this year.

As per Solvent Extractors Association of India (SEA) data, during April-February 2015-16, India had exported 4,34,645 tonnes of castor oil as against 4,00,084 tonnes in corresponding period of 2014-15.

India is the biggest source of castor oil to the world market. As the prices remained lower during the period, demand increased and as a result exports from the country increased.

According to industry sources, demand was not so good in 2014-15 whereas crop size was quite good which pressurized prices in the domestic market. This year too industry has pegged castor production on the higher side by 10%.

SEA has estimated castor seed production to rise by 10%, at 1.39 million tonnes for the year 2015-16. As against this, in 2014-15, castor seed production stood at 1.27 million tonnes.

Export of castor oil decreased in 2014 because of higher domestic rates. However, good crop and dry pipeline has increased demand in 2015, said Abhay Udeshi, managing director of Jayant Agro Organic.

Industry believes that in the current financial year, exports may increase to over 5,00,000 tonnes as stock including new crop and carry over is huge. According to trade estimate, for the year 2016-17, available stock of castor seed will be more than 2 million tonnes.

Castor Oil Export (in tonnes)

Year            Quantity

2012-13         430,752

2013-14         472,255

2014-15         459,378

2015-16*        434,645

Source: Solvent Extractors Association of India

*April-February data