Demand from China, low yield to push up castor price
High demand for castor seed from China and less area under castor cultivation is likely to push the castor price in the coming weeks.
By Tapash Talukdar, TNN |
RAJKOT: High demand for castor seed from China and less area under castor cultivation is likely to push the castor price in the coming weeks. Gujarat, the highest producer of castor in India, has witnessed lesser area under castor cultivation resulting in lower daily arrivals in the major market yards as compared to last year���s arrivals.
Recently, firms from China have placed order for 2,000 tonnes of castor seed and are likely to be one of the biggest importer of Indian castor this year. ���In general, the prices are sure to move up as Chinese buyers would buy even at a high price,��� says Minesh Patel, a Rajkot-based castor trader said.
China has registered a lower than average production of Tung oil this year as a result the demand for its substitute made from castor seed. Apart from a high demand from China, a large number of castor farmers in the state have shifted to cotton cultivation hoping to get a better price.
This has resulted in less sowing this year. The total sowing of castor seed has been down to only about 70% of total area under castor cultivation last year. Low sowing has led to lower castor seed arrivals, which began from early February.
Rajkot-based trader Pankaj Raichura says, ���The daily arrival in the state have been registering about 15,000 bags which was 45,000 bags in last year.��� He also indicated that the price would go up from the current Rs 360 to Rs 370 per 20 kg to Rs 400 or more in the coming weeks, which is almost 10% rise.
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Going forward the prices are likely to remain firm as major market yards for castor seed in Gujarat at Banaskantha, Saurashtra, Kutch, south Gujarat and Patan witness a downtrend in arrivals during the beginning of the season. The short supply of castor seed is likely to continue for the whole season this year.Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
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