Castor oil exports seen steady despite drop in output

India's castor oil exports in 2007 (January-December) might remain steady despite fall in kharif castor production due to adequate carryover stocks with exporters and stable demand in world markets, traders and industry experts said today.

As per industry estimates, India is expected to export around 200,000-250,000 tonne of castor oil in 2006 and another 50,000-80,000 tonne of derivatives.

India is world's largest producer and exporter of castor and its products in the world.

"Though initial estimates are showing a drop in kharif castor production due to shift in acreage in major growing states of Gujarat, Rajasthan and Andhra Pradesh oil exports might not show a corresponding fall as most players have adequate carryover stocks," Shvetal Vakil, chairman, Castor Promotion Council of Solvent Extractors Association of India, said.

Central Organisation of Oil Industry and Trade has estimated India's kharif castor production at 720,000 tonne, down 190,000 tonne from a year ago pushed by a sharp fall in acreage.

Gujarat, the country's leading castor growing state, is seen producing 430,000 tonne castor seed in (June-October), down 140,000 tonne from a year ago.

Rajasthan is likely to produce 130,000 tonne of the commodity, down 20,000 tonne, and production in Andhra Pradesh is seen at 130,000, down 30,000 tonne from previous year.

In India, kharif crops are sown around June-July and the harvest starts from September. "As per our estimates around 100,000 tonne of castor seed has been carried over to the new marketing year starting January, which would make up for the drop in production as demand is not expected to rise significantly due to limited use of castor oil and derivatives," Shvetal Vakil said.