Large carryover stock may cap sharp gain in castor: JAU

Despite of lower production, price of castor will not gain as large carryover stock may stunt sharp gain in castor price, says price forecast report of department of agricultural economics, Junagadh Agricultural University (JAU).

According to the report, the export of castor oil is likely to be around 550,000 tonnes and domestic consumption about 150,000 tonnes in 2012-13, which indicates that there is large carryover stock from last year's production which may not result in sharp price gains thereby keeping it in narrow range.

This, despite the fact that the current year production has fallen by 25 per cent. Hence, the current ruling price has been around Rs  700 per 20 kg which may remain stable with slight variations.

"Due to high carryover stock, prices of castor during March to May, 2013 may remain in the range of Rs  700 to 800 per 20 kg during harvesting period," MG Dhandhalya, Associate Research Scientist, Department of Agricultural Economics, JAU.

Traders estimate production this year at 1.3-1.4 million tonnes with a carryover stock of 500,000-600,000 tonnes.