Steep fall in India Castor seed prices on massive production

India’s Castor seed prices during the second quarter of 2012 dropped on the back of higher production compared to overall consumption. India covered 12.78 lakh hectares under castor seed in 2011-12 season as compared to 8.8 lakh hectares in 2010-11 season, according to a report from Angel Commodities.

In addition, favorable monsoon also increased the yield of castor seed by around 19% thereby leading to all time high production.

Castor seed prices have declined continuously since September 2011 till May 2012 on account higher availability in the domestic markets. Castor seed monthly average spot price, that stood around Rs 4983 per qtl levels in August 2011, have declined to a monthly average low of Rs 3095 per qtl level in June 2012, according to Angel Commodities report.

At NCDEX, castor seed futures made a low of Rs 2832 per qtl in June 2012 and rebounded sharply testing a high of Rs 3659 per qtl levels on 13th July, 2012,

India's domestic consumption stands around 3 lakh tonnes, which is barely 10% of the total global consumption. India consumed Castor seed and its derivatives are mainly in paint industry (45-50%), Soap Industry (25-30%), and Lubricants (15-20%), Angel Commodities report said.  [Source]

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