NATIONALMULTICOMMODITY

EXCHANGEOFINDIALIMITED

ReportonCastor

4thFloorH.K.House,
B/hJivabhaiChambers,AshramRoad,
Ahmedabad,Gujarat380009INDIA
Phone:917940086039Fax:917940086040

CastorSeed

Email:contact@nmce.comURL:www.nmce.com

CastorSeed

TableofContents

Introduction .............................................................................................. 4
CultivationPattern.................................................................................... 4
CastorGrowingArea&itsProduction ...................................................... 5
StatewiseProduction ............................................................................... 6
Source:CastorCropSurvey....................................................................... 6
InternationalScenario ............................................................................... 8
TradeScenario ........................................................................................ 10
CastorUses ............................................................................................. 12
CastorOil ................................................................................................ 13
CastorExtraction .................................................................................... 14
PricesofCastorseedandoil ................................................................... 15

CastorSeed

Introduction

Castor(RicinuscommunisL.)iscultivatedaroundtheworldbecauseofthecommercial
importanceofitsoil.Indiaistheworldslargestproducerofcastorseedandmeetsmost
of the global demand for castor oil. India produces 8 to 8.5 lakh tonnes of castor seed
annually,andaccountingformorethan60%oftheentireglobalproduction.

Because of its unlimited industrial applications, castor oil enjoys tremendous demand
worldwide.ThecurrentconsumptionofCastorOilanditsderivativesinthedomestic
marketisestimatedatabout300,000tonnes.Indiaisalsothebiggestexporterofcastor
oilanditsderivativesat87%shareoftheinternationaltradeinthiscommodity.

Castorisanimportantnonedibleoilseedcropandisgrownespeciallyinaridandsemi
aridregion.ItisoriginatedinthetropicalbeltofbothIndiaandAfrica.Itiscultivatedin
different countries on commercial scale, of which India, China and Brazil are major
castor growing countries accounting for 90 per cent of the worlds production.
Historically, Brazil, China and India have been the key producing countries meeting
global requirements. However, in early 90s, Brazilian farmers moved away to more
lucrativecashcrops,andsurgeindomesticdemandinChinamadethemnetimporters,
leavingIndiatomeettheglobaldemand.

CultivationPattern

Castorcropneedsatropicaltypeofclimatetodevelop.Thatswhythecastorislargely
foundinthecountrieslyinginthetropicalbeltoftheworld.

In India, Castor is planting season is during July or August and harvested around
December or January. The seedpods are dried, depodded and brought to the market
yardsduringDecemberorJanuaryfortrading.
Traditionally,castorisakharifseasoncrop.Sowingofcastorwithonsetofmonsoonis
found most beneficial in rained condition. However, sowing can be done up to first
fortnightofAugustwithoutreductioninyieldunderirrigatedcondition.

CastorSeed

CastorGrowingArea&itsProduction

IndianCastorSeedArea,ProductionandYield
Year

Area(000ha)

Production(000MT)

Yield(kg/ha)

200102

716

652

911

200203

583

428

733

200304

732

801

1094

200405

820

790

963

200506

948

970

1023

200607

810

800

987
Source:SEAofIndia

Castor grows under tropical conditions. It loves heat and humidity and does best in
regions where both are ample. India is gifted with an ideal climatic condition for
castorseed.

Castor seed production during the past decade remained around 7 to 8 lakh tonnes.
More than 9 lakh tonnes were produced in 200506, which was the highest during the
decade.Pricesfellin2005.Thereaftertheareaundercastorproductiondeclined,leading
todropinproductioninthefollowingyear.

CastorSeed

Castor Seed Production Trend in India

Production (in lakh tonnes)

12.00
9.91

10.00
8.00

9.00
7.80

8.30 8.40

9.28

8.80
7.97 7.93

7.70

7.95

6.53
6.00
4.28
4.00
2.00

2007-08*

2006-07*

2005-06

2004-05

2003-04

2002-03

2001-02

2000-01

1999-2000

1998-99

1997-98

1996-97

1995-96

0.00

Source: Agricultural Statistics Division ; * Estimates

Thetotalproductiondeclinedbyabout19%during200607fromabout9.9lakhtonnes
inthepreviousyear.Onemaynotethattheareaunderproductionalsodeclinedby15%.
Theaverageannualcastorseedandcastoroilpricesdeclinedduring2005.
Asperestimates,Indiaproduced9.2lakhtonnesin200708
StatewiseProduction

State

Production(000MT)
200607

200708

%Change

Gujarat

494.81(63%)

651.22(72%)

32%

Rajasthan

135.24(17%)

142.88(16%)

6%

AndhraPradesh

113.57(15%)

83.13(9%)

27%

Others

40(5%)

32.63(3%)

18%

Total

783.62

909.86

16%

Source:CastorCropSurvey

CastorSeed

Gujarat is the leading state in castor seeds production in India followed by Rajasthan
andAndhraPradesh.Gujaratcontributed71%ofthetotalproductionofcastorseedin
Indiain200708,followedbyRajasthanat16%,AndhraPradeshat9%andotherstates
sharing4%.

Statewise Castor Seed Production (in '000 tonnes) in India 2007-08

Andhra
Pradesh
83.13
9%

Others
32.63
4%

Rajasthan
142.88
16%

Gujarat
651.22
71%
Source: Castor Crop Survey

Mehsana and Banaskantha is the largest castor producing districts in Gujarat. In

Gujarat castor cultivation comes from 6 districts of North Gujarat, viz., Mehsana,
Banaskantha,Sabarkantha,Gandhinagar,PatanandKutch.
DistrictwiseProductionDetails

Gujarat
District

200607

200708

Banaskantha

108.77

165.72

52.36%

Gandhinagar

46.18

52.32

13.30%

Kachchh

94.25

88.29

6.32%

%Change

CastorSeed

Mahesana

54.21

77.61

43.17%

33

54.35

64.70%

Rajkot

12.42

18.65

50.16%

Sabarkantha

70.38

92.73

31.76%

Surendranagar

24.62

37.08

50.61%

Jamnagar

17.19

20

16.35%

Others

33.79

44.47

31.61%

Total

494.81

651.22

31.61%

Patan

Rajasthan

District

200607

200708

Barmer

10.81

6.69

61.58%

Hanumanthgarh

32.03

11.86

170.07%

Jalore

39.53

60.07

34.19%

Jodhpur

22.46

17.36

29.38%

2.09

4.98

58.03%

Sirohi

21.58

33.77

36.10%

Other

6.74

8.15

17.30%

Total

135.24

142.88

5.35%

200607

200708

4.07

2.47

64.78%

Mehabubnagar

68.77

48.14

42.85%

Nalgonda

26.38

21.3

23.85%

Rangareddy

4.83

3.56

35.67%

Others

9.52

7.65

24.44%

113.57

83.12

36.63%

Pali

%Change

AndhraPradesh

District
Kurnool

Total

InternationalScenario

%Change

CastorSeed

Castor seed is cultivated in various countries around the world that lie 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.Anychangeinthetrendoftheproductionofanyofthosecountriesleadsto
changeinthelevelofworldproduction.

Theworldproductionofcastorseedhoversaroundatanaverageof12.5lakhtonsand
of castor oil is 5.5 lakh tons. The major producer countries of castor are India, China
andBrazil.

World Castor Seed Production (000 MT) 2008

Brazil
90
7%

Others
110
9%

China
240
19%

India
830
65%

The top most country in the list is India with around 65% of the share in production
followedbyChinawith23%andBrazilwith7%ofshare.
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

CastorSeed

production and exporting lesser leaving India to be the dominant player in the
internationalmarket.

TradeScenario

Castor crop plays an important role in the agricultural economy of the earning
substantialforeignexchangethroughexportofcastorbeansandoils. Indiasexportsof
castor oil and derivatives are estimated at over Rs.800 crores p.a. The global castor
derivatives market is highly dependent on India. Indias export of castor oil and
derivativesis2.6lakhtonnesin200708.

Indiaisthefirstcountryintheworldtoexploithybridvigoroncommercialscaleinthis
crop. Major markets include European Union, USA, Japan and now China and
Thailand.

Though,Indiaisadominantplayerintheworldmarket,itisjustapricetakerandnota
price setter due to its poor infrastructure but it has the capability to improve on the
exportsofthederivativesofcastorandovercomethislimitation.

10

CastorSeed

Castor Oil Export Trend from India

250,000
208,176

204,877

186,610

Export (in tonnes)

200,000

182,159
163,862 161,619
139,729

150,000

100,000

50,000

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08*

*upto Dec 2007

Source: SEA

11

CastorSeed

Castorseed Oilcake Export Trend from India

300000
253400

Export (in tonnes)

250000
201150

202185

200000
150000
100000
69062

82495

89640

101885

50000
0
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08*

*upto Dec 2007

Source: SEA

CastorUses

Castorisaplantthatiscommerciallyveryimportanttotheworld.Castorseedoilcake
is very useful manure to crops. It is a very good fertilizer alternative containing
optimum levels of Nitrogen, Phosphorous and Potassium which is suitable for
cultivationofPaddy,Wheat,MaizeandSugarcane.

To derive the oil,the castorfruits are separated fromtheplant and allowed to dry for
about 1015 days. The dried fruit is split open from which castor seeds are obtained.
These seeds are processed prior to extraction of oil. The seeds generally contain up to
48%oilandtherestbecomesthepartofoilcake.

ThoughIndiameetsmostoftheworldsrequirementofcastoroilwearenotcapitalizing
it.Westillcontinuetoexporttheoilratherthanaddvaluetoit.Webuybackourown
castoroilasformulatedproductsandderivativesatmanytimesthepriceoftheoil.
12

CastorSeed

Castor Oils application range is very widethe uses range from cosmetics, paints,
synthetic resins & varnishes, to the areas of national security involving engineering
plastics,jetenginelubricantsandpolymersforelectronicsandtelecommunications.

Castor is a versatile, renewable resource having vast and varied applications such as
lubricating grease, surfactants, surface coatings, telecom, engineering plastics, pharma,
rubberchemicals,nylons,etc.

Castor oil and its derivatives find major application in soaps, lubricants, grease,
hydraulicbrakefluidsandpolymersandperfumeryproducts.

Theprimaryuseofcastoroil isasabasicingredientintheproductionof nylon11,jet

engine lubricants, nylon 610, heavy duty automotive greases, coatings and inks,
surfactants, polyurethanes, soaps, polishes, flypapers, lubricants, and many other
chemicalderivativesandmedicinal,pharmaceuticalandcosmeticderivatives.

The seedsandresidualcakeare highly poisonous and unlessprocessedto remove the

poisons cannot be fed to livestock. In some countries the cake is used as a fertilizer.
Poisonscontainedinthecakeincludericin.

CastorOil

Castor oil is obtained by pressing the seeds, followed by solvent extraction of the
pressedcake. CastorOilisoneoftheworldsmostusefulandeconomicallyimportant
naturalplantoils.Indiasupplies70%oftheworldsrequirementsofcastoroil.Thisoil
is unique among vegetable oils and uniqueness is derives from the presence of a
hydroxylfattyacidknownasricinoleicacid(12hydroxylcis9octadecenoicacid)which
constitutearound90%ofthetotalfattyacidsoftheoil.CastorOilisalsodistinguished
fromothervegetableoilsbyitshighspecificgravity,thicknessandhydroxylvalue.

IndiaisthelargestexporterofCastorOil.Amajorpartofthecastoroilproducedinthis
countryisexportedandthevalueadditiontakesplaceintheimportingcountries.

13

CastorSeed

TheIndianvarietyofcastorseedhasanoilcontentof48%and42%canbeextracted,
whilethecakeretainstherest.

Castor oil is used either in its crude form, or in the refined hydrogenated form.
Typically, 65% of it is processed. About 28% is refined, 12% is hydrogenated, 20% is
dehydrated, and the balance 5% is processed to manufacture other derivatives.The
major derivatives of Castor oil used in the industry hydrogenated castor oil (HCO),
Dehydratedcastoroil(DCO),Sebacicacidetc.

Thedemandforcastoroilderivativesisperennialinnaturesincetheyareindispensable
tothemanufactureofvariousproducts.Besides,ascastordoesnothaveasyntheticor
anyotheralternative,ithasanassuredmarket.

DomesticdemandofCastorOilhasunfortunatelynotkeptpacewithgrowthincastor
seedsoutput.Developedeconomiesaremajoruserofcastoroil.

CastorExtraction

The solvent extracted cake, although rich in protein cannot be used as cattle fodder
becauseofitstoxicity.However,itcanbeusedasafertilizer.

Theproteincontentofcastorseedmealvariesfrom2148%dependingupontheextent
of decortications. It has an ideal amino acid profile with moderately high Cystine,
mithionine, and isoleucine. But its ant nutritional substances, ricin, ricine and an
allergenrestrictitsuseinpoultryfeed,evenataverylowlevelofinclusion.

Castor Cake is an excellent fertilizer because of high content of N (6.4%), Phosphoric

Acid(2.55%)andPotash(1%)andmoistureretention.

14

CastorSeed

There is negative correlation between the contents of ricinine in castor seeds and oil
content(r=0.76).Thiscontentofricinineincastorseedisdeterminedbyagroclimatic
conditions.

PricesofCastorseedandoil

PricesofGujaratcastorseedinMumbaimarketsince2001hasshownhighvolatility.Its
versatilityandalargenumberofdownstreamproductsmakeconsumptiondemandof
thisoilpriceinelastic.

Themajorfactorsinfluencingthepricesare

Production

Monsoon

Yieldinothercountries

Pricesofsubstituteoils

Domesticandexportdemand

Seasonalfactors

Stockavailability

Developmentofnewusesoftheoil

In the international market, castor oil is one of the most expensive vegetable oils.
DespiteIndiasdominantpositionintheglobalcastormarket,wearenotpricesettersin
theExportmarket,butmerepricetakers.

Onemayobservefromthepricesbelowthatthepricesofcastorseedandcastoroilare
closelyrelatedtoeachother.

15

CastorSeed

Annual Avg Price of Castor Seed in Mumbai Market

22000
20,329

Avg Price (in Rs. per tonne)

20000
18000

17,676
16,968

16000

17,581

15,949

15,921

14000

13,668

12000
10000

15,967

15,873

11,494

11,464

10,425

8000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Souce: www.seaofindia.com

Annual Avg Prices of Castor Oil : Mumbai

50000

Price ( in Rs. per tonne)

45000

44,123

40000
39,492

37,185

39,408
35,398

35000

35,204

34,699

35,305
30,229

30000
25,998

25,796

25000
23,581
20000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Source: www.seaofindia.com

16

2800

Dec 2 2005
Jan 6 2006
Feb 13 2006
Mar 21 2006
Apr 26 2006
May 31 2006
Jul 5 2006
Aug 9 2006
Sep 14 2006
Oct 20 2006
Nov 25 2006
Jan 1 2007
Feb 6 2007
Mar 13 2007
Apr 17 2007
May 22 2007
Jun 26 2007
Jul 31 2007
Sep 6 2007
Oct 13 2007
Nov 17 2007
Dec 22 2007
Jan 29 2008
Mar 4 2008
Apr 10 2008
May 20 2008

Rs per Qntl

CastorSeed

NMCE Castor Seed Spot Price (Ahmedabad)

2600

2400

2200

2000

1800

1600

1400

17