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India’s castorseed output is likely to decline by 17 per cent this year, with a shift by farmers to more remunerative crops. Cotton was the biggest beneficiary.
A study by Nielsen India on behalf of castorseed processors, crushers and retailers points to a total output of 1.12 million tonnes (mt) this marketing season (July 2013-June 2014), as compared to 1.35 mt the previous year. Castorseed is a kharif crop, sown ahead of the monsoon and harvested towards the end of the 90-day season.
The study estimates castorseed sowing to decline 16 per cent to 916,000 hectares (ha) this season, against 1.096 million ha in the previous one. Andhra Pradesh, the second largest producer state after Gujarat, sees a fall in both production and sowing by 32 per cent and 31 per cent, respectively; in Gujarat, both are down 14 per cent. In rajasthan, sowing is down six per cent and output by a steep 17 per cent.
“Cotton has been a preferred choice for farmers, offering assured and higher returns. There is a great amount of confidence for government intervention if the price falls below the minimum support price, which is not the case for castorseed,” said Rajubhai Pobaru, a castorseed trader in Ahmedabad.
At the current Rs 11,951 a quintal, cotton has offered 16.4 per cent return in one year, against 11.2 per cent (to Rs 3,975 a quintal) profit generated by castorseed.
The study showed a marginal decline in yield due to vagaries of nature, to 1,223 kg per ha this year as compared to 1,229 kg per ha the previous year. India supplies around 90 per cent of the world demand.
A study by Nielsen India on behalf of castorseed processors, crushers and retailers points to a total output of 1.12 million tonnes (mt) this marketing season (July 2013-June 2014), as compared to 1.35 mt the previous year. Castorseed is a kharif crop, sown ahead of the monsoon and harvested towards the end of the 90-day season.
The study estimates castorseed sowing to decline 16 per cent to 916,000 hectares (ha) this season, against 1.096 million ha in the previous one. Andhra Pradesh, the second largest producer state after Gujarat, sees a fall in both production and sowing by 32 per cent and 31 per cent, respectively; in Gujarat, both are down 14 per cent. In rajasthan, sowing is down six per cent and output by a steep 17 per cent.
“Cotton has been a preferred choice for farmers, offering assured and higher returns. There is a great amount of confidence for government intervention if the price falls below the minimum support price, which is not the case for castorseed,” said Rajubhai Pobaru, a castorseed trader in Ahmedabad.
At the current Rs 11,951 a quintal, cotton has offered 16.4 per cent return in one year, against 11.2 per cent (to Rs 3,975 a quintal) profit generated by castorseed.
The study showed a marginal decline in yield due to vagaries of nature, to 1,223 kg per ha this year as compared to 1,229 kg per ha the previous year. India supplies around 90 per cent of the world demand.
The global castor oil industry has grown in line with the global growth in gross domestic product, of two to three 2-3 per cent per annum. In contrast, the Indian industry saw eight to 10 per cent yearly growth over the past decade. This difference is mainly attributed to crop failures or reduction in crop sizes in Brazil and China over the years.
“It is, thus, very important to have price stability, to give the confidence to world consumers that India is serious in castor and will meet the required demand at reasonable and competitive prices,” said B V Mehta, executive director, Solvent Extractors’ Association.
The carry-over from a higher crop in 2012 helped in the growth of the Indian castor oil industry. India’s castor oil exports were 500,000 tonnes during calendar year 2013, against 425,000 tonnes in 2012.
