Commodity report of Castor

INTRODUCTION Castor plant is a tropical plant that belongs to the

Euphorbiaceae family and is grown for its non-edible oilseed. It is commercially very important to the world. The castor seed oil cake is very useful manure to other crops. The oil obtained from the seeds of this plant is a very useful raw material in many industries like soap, surface coatings, cosmetics, pharmaceuticals, perfumes, greases and lubricants etc. Also the oil is used in a large number of medicines. That is why the seeds and oil of this plant make very important and valuable commodities that are traded in the market. This crop needs a tropical type of climate to develop. Thats why the castor is largely found in the countries lying in the tropical belt of the world. To derive the oil from the seeds of the plant, the processes of expression or decoction are used to press the seeds but the seeds as a whole are also traded in the market. The seeds generally contain 48 per cent oil content and the rest becomes the part of oil cake. Origin and history According to the available literature, castor (Ricinus comrnunis L.) is indigenous to Eastern Africa and most probably originated in Ethopia. The history of castor plant is not very clear. It is said that this plant originated in the tropical belt of India and Africa. The Sanskrit language gave the ancient name of castor i.e. Eranda. It was also called by various other names in different languages.

Herodotus, the father of history, stated that the Egyptians used a type of oil to burn their lamps and for other purposes, which was made by the seeds of Ricinus in the fourth century BC. He named it Kiki and till now castor is cultivated in Greece by the same name. Theophrastus and Dioscorides, who stated that the oil of the plant is not worth eating but is very good if applied externally as a medicine, gave the detailed description of the plant at around first century. They also stated the process of extracting oil from the seeds of the plant. This plant was cultivated till fifteenth century but due to the negative impacts that it has, it slowly started becoming unpopular and by the eighteenth century, its production practically ceased in Europe and the countries started fulfilling their requirements by importing the oil from Jamaica. This is the period in which its name changed to castor. The dark side of this plant oil was observed in the fascist Italy when under the leadership of Mussolini, castor oil was used to give punishments to the people who opposed the established fascist government. They were forced to consume this oil that in turn lead them to death. Botanical Description Castor belongs to the genus Ricinus, its a member of the Euphorbiaccae which consists a vast number of plants mostly native to the tropics. The genius; Ricinus is considered to be monotypic and R. cumunis as the only species which includes many polymorphic types. The cultivated types are dwarf annuals The stem is erect, circular in section, partially, hollow, smooth with good branching. The stem is marked by a number of well-

defined nodes, from each of which a leaf arises. Leaves are alternate, large, palliated with 5-11 lobes, acuminate, margins notched serrate or indented. They are carried on long stout petioles. The inflorescences are borne terminally on the main and lateral branches. Flowers are large, in terminal sub-panelled racemes, monocious, apetalous, the upper portion of the raceme being occupied by the female flowers and the lower by the male flowers. The fruit is a roundish glaucous capsule, with three projecting sides covered with tough spines or smooth, three-loculed and threeseeded. Seeds are albuminous, anatropous, broad, oval, compressed with a marked carnnele and longitudinal raphe. The testa is thin, brittle, varying in colour and mottling. Below the testa is the thin tegmen, covering the whitish oily endospeim containing the embryo.

Cultivation Pattern Castor is basically a tropical crop and it can survive in arid conditions. It is an annual crop and is grown by sowing the seeds in a hot weather. Castor can survive on various types of soils but it requires an appropriate and consistent rainfall. In India, it is grown as a kharif crop and is planted generally during the months of July and August. The crop has a duration period of 4 to 5 months and is generally harvested in the months of December and January. However the sowing and harvesting periods within the country differ according to the different regions where the crop is grown. Also, the region only decides that whether the crop is to be grown as a sole crop or a mixed crop. It starts to come to the market from October and comes till April.

Table 1: Important varieties of castor in Gujarat

Sr. No. a 1 2 b 3 4 5 Name of variety Varieties GAUC 1 GC 3 Hybrids GCH 3 GAUCH 1 GCH 2 1973 2006 1965 1973 1985 Rain fed areas of Gujarat Irrigated areas of Gujarat Gujarat Gujarat, Rajasthan Gujarat Irrigated areas of 6 GCH 6 2000 Gujarat, Rajasthan and M.P. Year of release Area recommended for cultivation

Yield kg/ha

Remarks

1250 2340 1543 1942 1747

High yield Wilt resistant High yield High yield Root rot tolerant Root rot resistant

2349

Economic Importance It is generally grown for, oil-yielding seeds. The oil content of the seeds varies from 35-58 per cent in different varieties, the average being about 47 per cent. Castor-oil is being used widely for various purposes. It is used as a lubricant in high-speed engines and aeroplanes, in the manufacture of soaps, transparent paper, printing-inks, varnishes, linoleum and plasticizers. It is also used for medicinal and lighting purposes. The cake is used as manure and plant stalks as fuel or as thatching material or for preparing paper-pulp. In the silk-producing areas, leaves are fed to the silkworms.

Global Scenario Worlds average total production of Castor seed figures around 12.5 lakh tonnes and is cultivated in more than 30 countries of the world. India is the worlds largest producer of castor and its derivatives contributing to almost 65 per cent share. Likewise India is also the leading producer of castor seed oil, which has its annual world production hovering around 5.5 lakh tonnes. Due to its end number of uses in various industries, castor oil has a high level of demand in the world that is still constantly rising at 3 to 5 per cent per annum. The major consumer countries of castor oil with their annual consumption figures are European Union (1,10,000 MT) India (1,00,000 MT) China (80,000 MT) Brazil (40,000 MT) USA (40,000 MT) Japan (20,000 MT) Thailand (15,000 MT) Others (10,000 MT) The world production of this crop is concentrated in the hands of few countries and that is why there are just a few exporters of castor oil fulfilling a large level of demand of the world. The major exporters of castor oil are the leading producing countries of it namely India, China and Brazil from which only India has been successfully meeting the domestic and the world requirements. The country holds a share of 70 per cent in the total exports. The other two countries have experienced an increase in their domestic

demand and hence are not capable of exporting a high quantity of oil. The leading countries in the list of imports of castor oil with their importing figures are: European Union (1,10,000 MT) USA (40,000 MT) Japan (20,000 MT) Thailand (150,00 MT) Others (10,000 MT) This list shows that the consumption of major importing countries is wholly dependent on their imports. The trade of castor oil in the world is estimated at about 2.5 lakh tons. Castor Producing Countries As already mentioned, Castor is produced in about 30 countries lying in the tropical belt of the world. The production of this crop is concentrated in the hands of a fewer countries and that is why the world production of castor and its derivatives is highly fluctuating. Any change in the trend of the production of any of those countries leads to change in the level of world production. The world production of castor seed hovers around at an average of 12.5 lakh tons and of castor oil is 5.5 lakh tons. The major producer countries of castor are India China Brazil Paraguay Ethiopia

 Philippines Russia Thailand The top most country in the list is India with around 65 per cent of the share in production followed by China with 23 per cent and Brazil with 7 per cent of share. The world production levels observed a sharp rise in the year 2001 which took the level to 17.5 lakh tons but it again fell down due to crop failure. Since few years, the countries China and Brazil are having an increase in their domestic consumption demand and hence are consuming a greater share of their production and exporting lesser leaving India to be the dominant player in the international market.

Table 2: World Production of Castor seeds

Country Harvest Season Production (000/T)
201011 (F) 200910 200809

Yield (T/ha)
2010 -11 (F) 2009 -10 2008 -09

Harvest Area (000/T)

201011 (F) 200910 200809

Brazil China PR India Other Countries World

Jun-Sept Sept-Jan Nov-Mar

101 190 1150 119 1560

93 170 970 114 1347

123 190 980 117 1410

0.64 0.90 1.26 0.63 1.06

0.59 0.85 1.18 0.62 0.99

0.76 0.86 1.13 0.63 0.98

158 210 910 189 1467

157 200 820 185 1362

163 220 870 186 1439

Source: - ISTA Mlelke, Germany, Dec 2010 Monthly report, internet: www.oilworld.de F = Forecast

Figure 1: Per cent share of castor seed production by major producing countries Production

Figure 2: Per cent share of castor oil consumption by major consuming countries Production

 Global castor seed production is almost stagnant around 1014 lakh tonnes in the past 7-8 years. Demand growing at 3-5% per annum. The present world trade about 2.0 2.50 lakh tons per annum. India dominates the castor oil exports market, china and Brazil large domestic demand for castor oil. Development of new applications and substitutes of castor oil derivatives better than petrochemical products.
Indian Scenario India being the largest producer of the castor contributes to around 65 per cent of the worlds total production. India produces around 8 lakh tons of castor seed and around 3 lakh tons of castor oil. The states in the country that are the major producers of castor are Gujarat Andhra Pradesh Orissa Tamil Nadu

 Rajasthan

Maharashtra

Karnataka The per cent shares of castor seed production my major producing states in India in 2010-11 are presented in Figure 3. The figure indicates that Gujarat is the major state in castor production with share of 71 per cent followed by Rajasthan and Andhra Pradesh

Figure 3: Per cent share of castor seed production my major producing states in India (Year: 2010-11)

Total area under Castor crop in India for the year 2010-11 is

8.59 lakh hectares. It has increased by 14 per cent as compared to previous year.
Estimated total production of Castor Seeds in India for the year

2010-11 is 11.90 lakh tonnes. It has increased by 22 per cent as compared to previous year.

 Average yield for the year 2010-11 is 1385 kg/hectare as

against 1297 kg/hectare during the year 2009-10. It has increased by 7 per cent as compared to previous year. The diagrammatic presentation of crop development based on monsoon progress in growing regions is given in Figure 4.

Figure 4: Crop development based on monsoon progress in growing regions

Cropping season In India, Castor planting season is during July or August and harvested around December or January. The seed pods are dried, de-podded and brought to the market yards during December or January for trading. Pre harvest operations 1. Emulsion methods 2. Pressure extraction methods 3. Solvent extraction methods

Post-harvest operations 1. 2. 3. 4. 5. 6. 7. Cleaning Grading Separation Drying Dehydration Sun drying Milling

Table 3: Statewise Area, Yield and Production of Castor Seeds in India (2010-11)
District Estimated Area Under Crop* (000 ha.)
2009 -10 201011 % Chang e

Estimated Production * (000 tonnes)

200910 2010 -11 % Change

Estimated yield * (Kg/ha.)

200 9-10 2010 -11 % Change

Gujarat Rajastha n Andhra Pradesh Other States Total

438 118 148 50 754

483 126 198 52 859

10% 7% 34% 4% 14%

735 126 85 30 978

860 161 138 32 1190

17% 27% 62% 7% 22%

168 3 106 5 575 600 129 7

1781 1274 698 615 1385

6% 20% 21% 2% 7%

* Nielsen India estimate # Secondary source Table 4: Districtwise Area, Yield and Production of Castor

Seeds in Gujarat (2010-11)

District Estimated Area Under Crop* (000 ha.) Estimated Production * (000 tonnes) Estimated yield * (Kg/ha.)

200910 Ahmedabad Banaskantha Gandhinagar Jamnagar Kutchh Kheda Mehsana Panchmahal Patan Rajkot Sabarkantha Surendranagar Vadodara Others Total 14.26 97.93 29.24 10.36 52.21 10.83 52.09 1.95 41.22 15.20 54.33 34.87 11.42 11.48 437.37

201011 13.86 105.46 31.77 9.35 63.64 12.67 59.33 2.46 46.54 13.12 60.81 38.56 12.71 12.65 482.93

% Chang e -3% 8% 9% -10% 22% 17% 14% 26% 13% -14% 12% 11% 11% 10% 10%

200910 24.6 178.24 55.25 17.77 61.19 17.04 98.22 2.76 72.77 23.59 102.35 43.07 20.02 19.29 736.16

201011 22.44 201.43 64.37 16.66 86.36 21.67 113.79 3.54 84.75 21.08 119.19 59.19 23.31 22.54 860.32

% Chang e -9% 13% 16% -6% 41% 27% 16% 28% 16% -11% 16% 37% 16% 17% 17%

200910 1725 1820 1890 1716 1172 1574 1886 1414 1765 1552 1884 1235 1754 1683 1683

201011 1619 1910 2026 1782 1357 1710 1918 1441 1821 1607 1960 1535 1834 1781 1781

% Chang e -6% 5% 7% 4% 16% 9% 2% 2% 3% 4% 4% 24% 5% 6% 6%

Gujarat:
The Districtwise Area, Yield and Production of Castor Seeds

in Gujarat in 2010-11 is presented in Table 4 and graphical presentation is presented in Figure 5. Total area under Castor crop in Gujarat for the year 2010-11 is 4.83 lakh hectares.

 The area has increased by 10% as compared to previous year. Area under Castor crop has increased in all the major castor growing districts except Ahmedabad, Jamnagar and Rajkot. Estimated total production of Castor Seeds in Gujarat for the year 2010-11 is 8.60 lakh tonnes, it has increased by 17% as compared to previous year.
Figure 5: District-wise Production of Castor Seeds

(Guj)

Growth is mainly in the districts such as Kachchh (41%), Surendranagar (37%) and all other districts except Ahmadabad, Rajkot and Jamnagar.

 Average yield for the year 2010-11 is 1781 kg/hectare as against 1683 kg/hectare during the year 2009-10. Table 5: Districtwise Area, Yield and Production of Castor Seeds in Rajasthan (2010-11)
District Estimated Area Under Crop* (000 ha.)
2009 -10 Barmer Jalore Jodhpur Pali Sirohi Others Total 5.98 48.85 15.94 3.92 26.94 16.83 118.4 201011 6.60 52.99 16.17 3.72 28.79 18.01 126.28
Change

Estimated Production * (000 tonnes)

2009 -10 6.6 58.13 17.67 4.12 26.48 13.14 126.1 201011 8.33 70.37 20.86 4.35 33.97 22.94 160.82
Change

Estimated yield * (Kg/ha.)

2009 -10 1104 1190 1108 1052 983 781 1065 201011 1262 1328 1290 1170 1180 1274 1274
% Change

10% 8% 1% -5% 7% 7% 7%

26% 21% 18% 6% 28% 74% 27%

14% 12% 16% 11% 20% -20%

Rajasthan
The Districtwise Area, Yield and Production of Castor Seeds

in Rajasthan in 2010-11 is presented in Table 5 and graphical presentation is presented in Figure 6. Total area under Castor crop in Rajasthan for the year 201011 is 1.26 lakh hectares. The area has increased by 7% as compared to previous year. This year, area under Castor crop has mainly increased in Barmer (10%) and other major district is Jalore (8%).

 Estimated total production of Castor Seeds in Rajasthan for the year 2010-11 is1.61 lakh tonnes. It has increased by 27% as compared to previous year. Production in Sirohi, Barmer and Jalore increased by 28%, 26% and 21% respectively as compared to previous year. Production in Rajasthan has increased mainly due to increase in yield. Average yield for the year 2010-11 is 1274 kg/hectare, which is 20% higher than previous year. Yield has increased in all the districts of Rajasthan due to favourable rainfall and suitable whether condition.

Figure 6: District-wise Production of Castor Seeds in Rajasthan

Andhra Pradesh
The Districtwise Area, Yield and Production of Castor Seeds

in Andhra Pradesh in 2010-11 is presented in Table 6 and graphical presentation is presented in Figure 7. Total area under Castor crop in Andhra Pradesh for the year 2010-11 is 1.98 lakh hectares. It has increased by 34% as compared to previous year. Area under Castor crop has increased in all other districts except Prakasam and Rangareddy. Major growth is in Kurnool district.

 Estimated total production of Castor Seeds in Andhra Pradesh for the year 2010-11 is 1.38 lakh tonnes. It has increased by 62% as compared to previous year due to decrease in area and yield.
Table 6: Districtwise Area, Yield and Production of Castor Seeds in Andhra Pradesh (2010-11)
District Estimated Area Under Crop* (000 ha.)
200910 201011 % Chang e

Estimated Production * (000 tonnes)

200910 201011 % Change

Estimated yield * (Kg/ha.)

200910 2010 -11 % Change

Kumool Mahbubna gar Nalgonda Prakasam Rangaredd y Others district Total

24.1 8 79.2 5 18.3 6 7.32 4.24 14.8 4 148. 19

56.30 90.25 20.70 7.09 4.20 19.46 198.00

133 14 13 -3 -1 34 34

15.28 46.92 8.04 3.91 2.53 8.53 85.21

42.28 66.15 9.27 4.12 2.87 13.59 138.28

177 41 15 5 14 59 62

632 592 438 534 594 575 575

751 733 448 581 681 698 698

19 24 2 9 15 21 21

Source: Nielsen India estimates Average yield for the year 2010-11 is 698 kg/hectare, which is 21% higher than the previous year. Yield has been increase due to adequate rainfall and good climatic conditions during the progress of the crop.

Figure 7: District-wise Production of Castor Seeds in Andhra Pradesh

Cost of Cultivation The details of cost of cultivation and yield of castor are presented in Table 11. It can be revealed from the table that the average total cost (Cost C2) of castor per hectare was Rs.27727. The expenditure share of operating cost in the total cost was 60.33 per cent. Among the different items of expenditure, the human labour ranked first with 19.47 per cent of the fertilizers total cost, followed by irrigation (18.77 %), miscellaneous costs (7.01 %), chemical (5.58 %), bullock labour (4.91 %), manure (4.81 %), seeds (4.43 %), plant protection measures (1.44 %), etc. The table further showed that the average

Table 11 Details of cost of cultivation of Castor crop per hectare in Gujarat, 2009-10 Sr. Items Physical Value % to No. unit Rs. Cost C2 1 Human labour: 3313 11.9 A: Family (man days) 38.50 5 2084 7.52 B: Hired (man days) 25..25 1363 4.91 2 Bullock labour (pair days) 3.75 1228 4.43 3 Seeds (kgs.) 7.27 1334 4.81 4 Manures (carts) 5.75 5 Chemical fertilizers (kgs) N 79.04 43.89 P 1546 5.58 0 K 6 Irrigation 5205 18.7 7 7 Insecticides/pesticides 399 1.44 8 Miscellaneous costs 1944 7.01 9 Depreciation cost 245 0.88 10 Interest on working capital 1381 4.98 11 Rental value of owned land 4830 17.4 2 12 Interest on owned fixed capital 334 1.21 2521 9.09 13 Management cost 16729 60.3 14 Cost A 3 21893 78.9 15 Cost B 6 25206 90.9 16 Cost C1 1 27727 100. 17 Cost C2 00 18 Yield: A: Main product (qn/ha) 18.55 B: By-product (qn/ha) 19.73 19 A: Farm harvest price of main product 2736.7 (Rs/qn) 1

B: Income from by-product (Rs/ha) Gross income: main product + by-product (Rs/ha) Summary results Sr. Costs Returns/ha over Costs/qn No Costs (Rs.) (Rs.) 870 1 Cost A 34632 Cost B 1148 2 29468 Cost C1 1327 3 26155 Cost C2 1463 4 23634 20

595 51361 Input-output ratio over costs 1:3.07 1:2.35 1:2.04 1:1.85

yield of castor was 18.55 quintals per hectare. The average gross returns was Rs.51361/- per hectare. The input-output ratio worked out was 1:1.85.It indicates that the cultivation of castor was found profitable during the period of study. Indian Castor Market

Oils and oilseeds have played an important role in the Indian economy for a long time. India produces a large variety of oilseeds including rapeseed, groundnut, sunflower etc., which earn the country huge share of foreign exchange. Castor seed is a non-edible oilseed that is produced for its very useful oil. India is the largest producer of castor seed and oil. It contributes about 8 lakh tons of castor seed with an approximate of 65 per cent share and 3 lakh tons of castor oil with an approximate of 51 per cent share in the world total production. Gujarat is Indias leading castor producing state constituting to around 86 per cent of the countrys total produce. India nearly consumes one-fourth of its total production and exports the rest but it still is the second largest consumer in the world. The major sources of demand of castor oil are the various industries like soap, lubricant and paint industries and the demand of the oil is

spread all across of country. This crop is grown over 6.25 lakh hectares of the country. As it is mentioned before, India exports 75 per cent of its total production of castor and its derivatives. India exports around 3 lakh tons of castor oil that is worth Rs.700 crores and stands at the top position in the list of major castor oil exporting countries. India exports castor oil in two forms namely First Special grade and Castor Oil Commercial. This figure of exports from India is on a rising trend and much of the worlds requirements are fulfilled by India only. The countries that imports castor oil from India are European Union USA Japan China Thailand Though, India is a dominant player in the world market, it is just a price taker and not a price setter due to its poor infrastructure but it has the capability to improve on the exports of the derivatives of castor and overcome this limitation. Market Influencing Factors Production and acreage variations Monsoon and rainfall level Size of the yield level of other countries Prices of other competitive oils Demand of the importing countries and domestic demand

 Seasonal price variations Hoarding and black-marketing Carryover stocks Development of new uses of the oil Factors Influencing Prices 1. Consumption and export pattern 2. Estimated output based on the acreage and weather conditions and pest infestation etc. 3. Leftover stocks from the previous years production after meeting the demand 4. Government policies and intervention 5. Shifting cropping patterns in producing countries Characteristics of Castor seeds and Oil Market

Uncertain supply - The world castor seed production has fluctuated between 1.2 and 1.8 million tonnes since 1997 to 2001. India's production ranged between 0.8 and 1.1 million tonnes during the same period.

Recent developments of artificial substitutes of castor oil in the world market has subjected the demand to fluctuation Long storing period - It is a common practice for the castor seed growers and crushers to hoard the commodity before selling in expectation for better prices.

Well-developed and organized spot market in India Major Trading Centres in India

The major trading centres of castor and its derivatives in India are: Rajkot (Gujarat) Ahmedabad (Gujarat) Gondal (Gujarat) Patan (Gujarat) Dhanera (Gujarat) Disa (Gujarat) Kadi (Gujarat) Jedcherla (Andhra Pradesh) Yemignoor (Andhra Pradesh)

Marketing Channels for Castor

Marketing channels are routes through which agricultural produce move from producer to consumer.

The most important marketing channels for castor in India are: 1. Producer -> Village trader -> Oil retailer -> Consumer 2. Producer -> Oilseed wholesaler -> Processor -> Oil wholesaler -> Oil retailer -> Oil consumer.
3.

Producer -> Processer or Oil wholesaler -> Oil retailer -> Exporter.

Seasonal trend in average castor price

The seasonal trend of castor price in Patan APMC from period 2001 to 2010 is given in Figure 8. The highest price of Rs. 2036.98 per quintal was observed in November. The lowest price was observed in January i.e. Rs. 1743.90 per quintal. The seasonal trend of castor price in Dhanera APMC from period 2000 to 2009 is given in Figure 9. Many ups and downs were

observed in seasonal price of castor in Dhanera APMC. The highest price of Rs. 1773.37 per quintal was observed in August. The lowest price was observed in December i.e. Rs. 1635.57 per quintal.

Figure 8: Seasonal trend in average castor price in Patan APMC

(Period: 2010) 2001 to

Figure 9: Seasonal trend in average castor price in Dhanera APMC (Period: 2000 to

2009)

Market Integration In order to check the stationarity of price series of castor the Augmented Dickey Fuller based unit root test procedure was done. The result is given in Table 7. From the table it could be inferred that Augmented Dickey Fuller test values are above the critical value (i.e. 1 %) given by MacKinnon statistical tables at levels implying that the series are non-stationary at their levels indicating the existence of unit root. After taking first difference, all the series become stationary which can be observed from the calculated values for both the markets are less than the critical value (1 %) and are free from unit root. Table 7: ADF test results of castor price Market Patan Level -1.372 First difference -7.476 Critical value (1%) -3.495

Dhanera

-1.443

-7.378

*MacKinnon critical values for rejection of hypothesis

Johansens Multiple Cointegration Analysis Based on Johansen multiple cointegration procedure the integration between the Patan and Dhanera markets was analysed. The result is presented in Table 8. The result indicated the presence of cointegration at 5 per cent level of significance. Hence both the markets have long run equilibrium.

Table 8: Results of Multiple Cointegration Analysis Trace Statistics 37.53 1 % critical value 19.93 5 % critical value 15.49 No. of CE None*

Granger Causality Test In order to know the direction of causation between the markets Granger causality test was carried out. The results are presented in Table 9. The results indicated that Dhanera market price influenced the Patan market price and there existed unidirectional causality from Dhanera market price to Patan market price. Patan market price has not influenced Dhanera market price.

Table 9: Pairwise Granger Causality Test results Null Hypothesis Dhanera does not Granger Cause Patan Patan does not Granger Cause Dhanera Obs . Fstatistics 157.213** 102 1.60237 0.2067 Probabilit y 4.E-31

(** indicates significant at 1 per cent level)

Distribution of castor seed

The distribution of castor seed from assembling markets to crushing centres is effected mainly by whole sale merchants, commission agents, millers and exporters.

Owners

of

ghanis

and

small

crushing

establishments

generally purchase their seed requirements locally from whole sale merchants.

Large oil-mills purchase through their agents at assembling centres.

Millers usually purchase their requirements of castor-seed on the basis of samples and in the case of local purchases often after inspecting the produce. Agencies Engaged in the Marketing of Castor:

The proportion of marketable surplus taken by producers to the market varies from 10 to 75 per cent.

It is estimated that in Bihar, only 10 per cent is taken to the market by the producers while in Uttar Pradesh, 50 per cent is taken.

In Andhra Pradesh, 25 to 75 per cent produce is taken by producers directly to the market.

For the whole of India, it may be said that about 50 per cent is taken to the market by producers and the remaining 50 per cent reaches the market through various types of middlemen.

In some States, the prices offered by middlemen in the villages are better than the ones prevailing in the large markets.

Export of Castor Oil India currently exports castor oil and derivatives worth about 3000 crore Rs. ($ 650 million) per annum, while the country holds around 90 per cent share in the total castor oil and derivatives exports in the world. Global consumption of castor oil is expected to rise marginally in the range of 630,000-640,000 tonnes in the year 2010-11. The growth of consumption is moderate in the US and falling in Japan and South Korea.

 The industry body has estimated India's castor oil export this year around 3.97 lakh tons. Current rate of castor oil, CIF Rotterdam is USD 2700. About 23000 MT are to be shipped and shippers daily need supply of raw material of up to 60,000- 65,000 bags. The prices, which had touched a peak of $2800 per tonne, are expected to come down to $2000-2200 per tonne in coming months. Table 10: Export of castor oil by India (Excluding Derivatives) Year April-March 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09* 2009-10* 2010-11* Quantity M.T. 227.033 204.877 163.862 161.619 208.176 182.159 186.610 176.177 308.625 345.333 259.970 Value Rs. Crore 806.07 556.22 520.85 603.27 788.56 627.43 653.05 757.29 1821.57 1780.31 1706.90

(up to October) Source: - SEA Data Bank * Including bulk & Containers The export of Castor oil by major exporting countries is presented in Table 11. It is clearly visible from the table that India is the major exporter of castor oil followed by U.S.A, European Union and Brazil. Table 11: Export of Castor oil by major exporting countries

(Oct Sept) (Qty. in 000 tonnes) Country India EU 27 U.S.A. Brazil Other Countrie s World 09-10 395.5 2.9 7.6 0.9 20.8 428.1 08-09 271.2 1.9 7.1 0.7 20.1 301.0 07-08 350.9 1.7 6.1 0.2 23.6 382.5 06-07 299.6 1.7 3.3 2.6 20.1 327.5 05-06 246.5 1.3 4.0 4.1 24.1 282.0 04-05 272.5 1.7 2.6 10.2 27.0 314.0 03-04 216.4 2.2 3.0 0.7 26.9 251.2

Source: - ISTA Mlelke, Germany, Dec 2010 Monthly report, internet: WWW.oilworld.de The diagrammatic presentation of export of castor oil by India in quantity and value terms is shown in Figure 10. It can be seen that India exported highest castor oil in the year 2004-05 in quantity as well as value term. Figure 10: Export of castor oil by India (Quantity: in Lakh MT & Value: in Rs. Cr.)

CONCLUSION

India is the largest producer of castor seed and oil. It contributes about 8 lakh tons of castor seed with an approximate of 65 per cent share and 3 lakh tons of castor oil with an approximate of 50 per cent share in the world total production. Gujarat is Indias leading castor producing state constituting to around 86 per cent of the countrys total produce. India nearly consumes one-fourth of its total production and exports the rest but it still is the second largest consumer in the world. India exports about three-fourth per cent of its total production of castor and its derivatives. India stands at the top position in the list of major castor oil exporting countries. India exports castor oil in two forms namely First Special grade and Castor Oil Commercial. This figure of exports from India is on a rising trend and much of the worlds requirements are fulfilled by India only. Though, India is a dominant player in the world market, it is just a price taker and not a price setter due to its poor infrastructure but it has the capability to improve on the exports of the derivatives of castor and overcome this limitation. REFERENCES
www.ikisan.com/links/ap_castorHistory.shtml Report on Castor, National Multi-Commodity Exchange of India Limited Castor Seed Seasonal Outlook, KARVY Comtrade Ltd.