BKS alleges 'anti-farmer nexus' between exporters and traders

The Bharatiya Kisan Sangh today (BKS) alleged that an "anti-farmer nexus" between exporters, including Adani Wilmar, and futures traders at commodity exchanges is forcing farmers to sell castor seeds at non-profitable prices.
The BKS, farmers' wing of the RSS, demanded that the government give a minimum support price (MSP) of Rs 6,000 per quintal for castor seeds and impose minimum export price (MEP) of USD 1,800 per tonne for castor oil.
Talking to reporters here, BKS's Gujarat wing President Maganbhai Patel said: "Due to an anti-farmer nexus between several exporters, including Adani Wilmar, Jayant Agro and Gokul Refoils, and futures traders at commodity exchanges, castor seed farmers are forced to sell their crop at non-remunerative prices of Rs 3,500 per quintal."

Castor seed prices have fallen to Rs 3,500 per quintal, while the cost of input is around Rs 6,000-7,000 per quintal, it said.
When sought his response to the allegation, Adani Wilmar CEO Atul Chaturvedi said: "There is nothing to comment."
Patel alleged that castor seed prices are falling because exporters are selling castor oil at a throw away price in the global market.

It further made the charge that exporters, competing to retain their market share, are shipping castor oil at a low prices of USD 1,200 a tonne, much lower than the USD 2,800 a tonne in 2011.

Commodity futures trading was started to help growers discover forward prices and ensure improved returns, BKS said, adding, "but in case of castor seed, fundamental factors are overlooked. Imposition of margins often goes against the interest of growers who are primary producers of the raw material for castor oil."
Asserting that India must enjoy the benefit of its near monopoly position in the world castor oil export market, BKS General Secretary Babhubhai Patel said: "This is possible by imposing MEP on castor oil commensurate with market conditions."
India, the world's largest producer and exporter, accounts for 80 per cent of the world's castor oil trade. It is used in cosmetics, pharmaceuticals, lubricants and other industries.

Production of castor seed is pegged at 12-14 lakh tonnes this year, as against 16 lakh tonnes last year, as per industry estimates.