Castor Report
NATIONAL MULTI-COMMODITY EXCHANGE OF INDIA LIMITED
Report on Castor
4th Floor H. K. House, B/h Jivabhai Chambers, Ashram Road, Ahmedabad, Gujarat 380 009 INDIA Phone: 91-79-4008 6039 Fax: 91-79-4008-6040 Email: [email protected] URL: www.nmce.com
Castor Seed
Table of Contents Introduction .............................................................................................. 3 Cultivation Pattern .................................................................................... 3 Castor Growing Area & its Production ...................................................... 4 State-wise Production ............................................................................... 5 Source: Castor Crop Survey ....................................................................... 5 International Scenario ............................................................................... 7 Trade Scenario .......................................................................................... 9 Castor Uses ............................................................................................. 11 Castor Oil ................................................................................................ 12 Castor Extraction .................................................................................... 13 Prices of Castor seed and oil ................................................................... 14
2
Castor Seed
Introduction Castor (Ricinus communis L.) is cultivated around the world because of the commercial importance of its oil. India is the world’s largest producer of castor seed and meets most of the global demand for castor oil. India produces 8 to 8.5 lakh tonnes of castor seed annually, and accounting for more than 60% of the entire global production. Because of its unlimited industrial applications, castor oil enjoys tremendous demand world-wide. The current consumption of Castor Oil and its derivatives in the domestic market is estimated at about 300,000 tonnes. India is also the biggest exporter of castor oil and its derivatives at 87% share of the international trade in this commodity. Castor is an important non-edible oilseed crop and is grown especially in arid and semi arid region. It is originated in the tropical belt of both India and Africa. It is cultivated in different countries on commercial scale, of which India, China and Brazil are major castor growing countries accounting for 90 per cent of the world's production. Historically, Brazil, China and India have been the key producing countries meeting global requirements. However, in early 90’s, Brazilian farmers moved away to more lucrative cash crops, and surge in domestic demand in China made them net importers, leaving India to meet the global demand. Cultivation Pattern Castor crop needs a tropical type of climate to develop. That’s why the castor is largely found in the countries lying in the tropical belt of the world. In India, Castor is planting season is during July or August and harvested around December or January. The seedpods are dried, de-podded and brought to the market yards during December or January for trading. Traditionally, castor is a kharif season crop. Sowing of castor with onset of monsoon is found most beneficial in rained condition. However, sowing can be done up to first fortnight of August without reduction in yield under irrigated condition.
3
Castor Seed
Castor Growing Area & its Production Indian Castor Seed Area, Production and Yield Year
Area (000 ha)
Production (000 MT)
Yield (kg / ha)
2001-02
716
652
911
2002-03
583
428
733
2003-04
732
801
1094
2004-05
820
790
963
2005-06
948
970
1023
2006-07
810
800
987 Source: SEA of India
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 castor seed. Castor seed production during the past decade remained around 7 to 8 lakh tonnes. More than 9 lakh tonnes were produced in 2005-06, which was the highest during the decade. Prices fell in 2005. Thereafter the area under castor production declined, leading to drop in production in the following year.
4
Castor Seed
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
The total production declined by about 19% during 2006-07 from about 9.9 lakh tonnes in the previous year. One may note that the area under production also declined by 15%. The average annual castor seed and castor oil prices declined during 2005. As per estimates, India produced 9.2 lakh tonnes in 2007-08 State-wise Production
State
Production( '000 MT) 2006-07
2007-08
% Change
Gujarat
494.81 (63%)
651.22 (72%)
32%
Rajasthan
135.24 (17%)
142.88(16%)
6%
Andhra Pradesh
113.57 (15%)
83.13 (9%)
-27%
Others
40 (5%)
32.63 (3%)
-18%
Total
783.62
909.86
16% Source: Castor Crop Survey
5
Castor Seed
Gujarat is the leading state in castor seeds production in India followed by Rajasthan and Andhra Pradesh. Gujarat contributed 71% of the total production of castor seed in India in 2007-08, followed by Rajasthan at 16%, Andhra Pradesh at 9% and other states sharing 4%.
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, Patan and Kutch. District-wise Production Details Gujarat District
2006-07
2007-08
% Change
Banaskantha
108.77
165.72
52.36%
Gandhinagar
46.18
52.32
13.30%
Kachchh
94.25
88.29
-6.32%
6
Castor Seed
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%
494.81
651.22
31.61%
Patan
Total Rajasthan District
2006-07
2007-08
% Change
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%
Pali
Andhra Pradesh District Kurnool
2006-07
2007-08
% Change
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%
Total
International Scenario 7
Castor Seed
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. 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 and Brazil.
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 followed by China with 23% and Brazil with 7% of share. 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
8
Castor Seed
production and exporting lesser leaving India to be the dominant player in the international market.
Trade Scenario Castor crop plays an important role in the agricultural economy of the earning substantial foreign exchange through export of castor beans and oils. India’s exports of castor oil and derivatives are estimated at over Rs.800 crores p.a. The global castor derivatives market is highly dependent on India. India’s export of castor oil and derivatives is 2.6 lakh tonnes in 2007-08. India is the first country in the world to exploit hybrid vigor on commercial scale in this crop.
Major markets include European Union, USA, Japan and now China and
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.
9
Castor Seed
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
10
Castor Seed
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
Castor Uses Castor is a plant that is commercially very important to the world. Castor seed oil cake 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 cultivation of Paddy, Wheat, Maize and Sugarcane. To derive the oil, the castor fruits are separated from the plant and allowed to dry for about 10-15 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% oil and the rest becomes the part of oil cake. Though India meets most of the world’s requirement of castor oil we are not capitalizing it. We still continue to export the oil rather than add value to it. We buy back our own castor oil as formulated products and derivatives at many times the price of the oil. 11
Castor Seed
Castor Oil’s application range is very wide-the uses range from cosmetics, paints, synthetic resins & varnishes, to the areas of national security involving engineering plastics, jet engine lubricants and polymers for electronics and telecommunications. Castor is a versatile, renewable resource having vast and varied applications such as lubricating grease, surfactants, surface coatings, telecom, engineering plastics, pharma, rubber chemicals, nylons, etc. Castor oil and its derivatives find major application in soaps, lubricants, grease, hydraulic brake fluids and polymers and perfumery products. The primary use of castor oil is as a basic ingredient in the production of nylon 11, jet engine lubricants, nylon 6-10, heavy duty automotive greases, coatings and inks, surfactants, polyurethanes, soaps, polishes, flypapers, lubricants, and many other chemical derivatives and medicinal, pharmaceutical and cosmetic derivatives. The seeds and residual cake are highly poisonous and unless processed to remove the poisons cannot be fed to livestock. In some countries the cake is used as a fertilizer. Poisons contained in the cake include ricin. Castor Oil Castor oil is obtained by pressing the seeds, followed by solvent extraction of the pressed cake. Castor Oil is one of the world’s most useful and economically important natural plant oils. India supplies 70% of the world’s requirements of castor oil. This oil is unique among vegetable oils and uniqueness is derives from the presence of a hydroxyl fatty acid known as ricinoleic acid (12- hydroxyl-cis-9-octadecenoic acid) which constitute around 90% of the total fatty acids of the oil. Castor Oil is also distinguished from other vegetable oils by its high specific gravity, thickness and hydroxyl value. India is the largest exporter of Castor Oil. A major part of the castor oil produced in this country is exported and the value addition takes place in the importing countries.
12
Castor Seed
The Indian variety of castor seed has an oil content of 48% and 42% can be extracted, while the cake retains the rest. 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), Dehydrated castor oil (DCO), Sebacic acid etc. The demand for castor oil derivatives is perennial in nature since they are indispensable to the manufacture of various products. Besides, as castor does not have a synthetic or any other alternative, it has an assured market. Domestic demand of Castor Oil has unfortunately not kept pace with growth in castor seeds output. Developed economies are major user of castor oil.
Castor Extraction The solvent extracted cake, although rich in protein cannot be used as cattle fodder because of its toxicity. However, it can be used as a fertilizer. The protein content of castor seed meal varies from 21-48% depending upon the extent 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 allergen restrict its use in poultry feed, even at a very low level of inclusion. Castor Cake is an excellent fertilizer because of high content of N (6.4%), Phosphoric Acid (2.55%) and Potash (1%) and moisture retention.
13
Castor Seed
There is negative correlation between the contents of ricinine in castor seeds and oil content (r = -0.76). This content of ricinine in castor seed is determined by agro climatic conditions. Prices of Castor seed and oil Prices of Gujarat castor seed in Mumbai market since 2001 has shown high volatility. Its versatility and a large number of down-stream products make consumption demand of this oil price-inelastic. The major factors influencing the prices are Production Monsoon Yield in other countries Prices of substitute oils Domestic and export demand Seasonal factors Stock availability Development of new uses of the oil In the international market, castor oil is one of the most expensive vegetable oils. Despite India’s dominant position in the global castor market, we are not price-setters in the Export market, but mere price takers. One may observe from the prices below that the prices of castor seed and castor oil are closely related to each other.
14
Castor Seed
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
15
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
Castor Seed
NMCE Castor Seed Spot Price (Ahmedabad)
2600
2400
2200
2000
1800
1600
1400
16
Report on Castor
4th Floor H. K. House, B/h Jivabhai Chambers, Ashram Road, Ahmedabad, Gujarat 380 009 INDIA Phone: 91-79-4008 6039 Fax: 91-79-4008-6040 Email: [email protected] URL: www.nmce.com
Castor Seed
Table of Contents Introduction .............................................................................................. 3 Cultivation Pattern .................................................................................... 3 Castor Growing Area & its Production ...................................................... 4 State-wise Production ............................................................................... 5 Source: Castor Crop Survey ....................................................................... 5 International Scenario ............................................................................... 7 Trade Scenario .......................................................................................... 9 Castor Uses ............................................................................................. 11 Castor Oil ................................................................................................ 12 Castor Extraction .................................................................................... 13 Prices of Castor seed and oil ................................................................... 14
2
Castor Seed
Introduction Castor (Ricinus communis L.) is cultivated around the world because of the commercial importance of its oil. India is the world’s largest producer of castor seed and meets most of the global demand for castor oil. India produces 8 to 8.5 lakh tonnes of castor seed annually, and accounting for more than 60% of the entire global production. Because of its unlimited industrial applications, castor oil enjoys tremendous demand world-wide. The current consumption of Castor Oil and its derivatives in the domestic market is estimated at about 300,000 tonnes. India is also the biggest exporter of castor oil and its derivatives at 87% share of the international trade in this commodity. Castor is an important non-edible oilseed crop and is grown especially in arid and semi arid region. It is originated in the tropical belt of both India and Africa. It is cultivated in different countries on commercial scale, of which India, China and Brazil are major castor growing countries accounting for 90 per cent of the world's production. Historically, Brazil, China and India have been the key producing countries meeting global requirements. However, in early 90’s, Brazilian farmers moved away to more lucrative cash crops, and surge in domestic demand in China made them net importers, leaving India to meet the global demand. Cultivation Pattern Castor crop needs a tropical type of climate to develop. That’s why the castor is largely found in the countries lying in the tropical belt of the world. In India, Castor is planting season is during July or August and harvested around December or January. The seedpods are dried, de-podded and brought to the market yards during December or January for trading. Traditionally, castor is a kharif season crop. Sowing of castor with onset of monsoon is found most beneficial in rained condition. However, sowing can be done up to first fortnight of August without reduction in yield under irrigated condition.
3
Castor Seed
Castor Growing Area & its Production Indian Castor Seed Area, Production and Yield Year
Area (000 ha)
Production (000 MT)
Yield (kg / ha)
2001-02
716
652
911
2002-03
583
428
733
2003-04
732
801
1094
2004-05
820
790
963
2005-06
948
970
1023
2006-07
810
800
987 Source: SEA of India
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 castor seed. Castor seed production during the past decade remained around 7 to 8 lakh tonnes. More than 9 lakh tonnes were produced in 2005-06, which was the highest during the decade. Prices fell in 2005. Thereafter the area under castor production declined, leading to drop in production in the following year.
4
Castor Seed
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
The total production declined by about 19% during 2006-07 from about 9.9 lakh tonnes in the previous year. One may note that the area under production also declined by 15%. The average annual castor seed and castor oil prices declined during 2005. As per estimates, India produced 9.2 lakh tonnes in 2007-08 State-wise Production
State
Production( '000 MT) 2006-07
2007-08
% Change
Gujarat
494.81 (63%)
651.22 (72%)
32%
Rajasthan
135.24 (17%)
142.88(16%)
6%
Andhra Pradesh
113.57 (15%)
83.13 (9%)
-27%
Others
40 (5%)
32.63 (3%)
-18%
Total
783.62
909.86
16% Source: Castor Crop Survey
5
Castor Seed
Gujarat is the leading state in castor seeds production in India followed by Rajasthan and Andhra Pradesh. Gujarat contributed 71% of the total production of castor seed in India in 2007-08, followed by Rajasthan at 16%, Andhra Pradesh at 9% and other states sharing 4%.
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, Patan and Kutch. District-wise Production Details Gujarat District
2006-07
2007-08
% Change
Banaskantha
108.77
165.72
52.36%
Gandhinagar
46.18
52.32
13.30%
Kachchh
94.25
88.29
-6.32%
6
Castor Seed
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%
494.81
651.22
31.61%
Patan
Total Rajasthan District
2006-07
2007-08
% Change
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%
Pali
Andhra Pradesh District Kurnool
2006-07
2007-08
% Change
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%
Total
International Scenario 7
Castor Seed
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. 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 and Brazil.
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 followed by China with 23% and Brazil with 7% of share. 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
8
Castor Seed
production and exporting lesser leaving India to be the dominant player in the international market.
Trade Scenario Castor crop plays an important role in the agricultural economy of the earning substantial foreign exchange through export of castor beans and oils. India’s exports of castor oil and derivatives are estimated at over Rs.800 crores p.a. The global castor derivatives market is highly dependent on India. India’s export of castor oil and derivatives is 2.6 lakh tonnes in 2007-08. India is the first country in the world to exploit hybrid vigor on commercial scale in this crop.
Major markets include European Union, USA, Japan and now China and
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.
9
Castor Seed
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
10
Castor Seed
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
Castor Uses Castor is a plant that is commercially very important to the world. Castor seed oil cake 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 cultivation of Paddy, Wheat, Maize and Sugarcane. To derive the oil, the castor fruits are separated from the plant and allowed to dry for about 10-15 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% oil and the rest becomes the part of oil cake. Though India meets most of the world’s requirement of castor oil we are not capitalizing it. We still continue to export the oil rather than add value to it. We buy back our own castor oil as formulated products and derivatives at many times the price of the oil. 11
Castor Seed
Castor Oil’s application range is very wide-the uses range from cosmetics, paints, synthetic resins & varnishes, to the areas of national security involving engineering plastics, jet engine lubricants and polymers for electronics and telecommunications. Castor is a versatile, renewable resource having vast and varied applications such as lubricating grease, surfactants, surface coatings, telecom, engineering plastics, pharma, rubber chemicals, nylons, etc. Castor oil and its derivatives find major application in soaps, lubricants, grease, hydraulic brake fluids and polymers and perfumery products. The primary use of castor oil is as a basic ingredient in the production of nylon 11, jet engine lubricants, nylon 6-10, heavy duty automotive greases, coatings and inks, surfactants, polyurethanes, soaps, polishes, flypapers, lubricants, and many other chemical derivatives and medicinal, pharmaceutical and cosmetic derivatives. The seeds and residual cake are highly poisonous and unless processed to remove the poisons cannot be fed to livestock. In some countries the cake is used as a fertilizer. Poisons contained in the cake include ricin. Castor Oil Castor oil is obtained by pressing the seeds, followed by solvent extraction of the pressed cake. Castor Oil is one of the world’s most useful and economically important natural plant oils. India supplies 70% of the world’s requirements of castor oil. This oil is unique among vegetable oils and uniqueness is derives from the presence of a hydroxyl fatty acid known as ricinoleic acid (12- hydroxyl-cis-9-octadecenoic acid) which constitute around 90% of the total fatty acids of the oil. Castor Oil is also distinguished from other vegetable oils by its high specific gravity, thickness and hydroxyl value. India is the largest exporter of Castor Oil. A major part of the castor oil produced in this country is exported and the value addition takes place in the importing countries.
12
Castor Seed
The Indian variety of castor seed has an oil content of 48% and 42% can be extracted, while the cake retains the rest. 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), Dehydrated castor oil (DCO), Sebacic acid etc. The demand for castor oil derivatives is perennial in nature since they are indispensable to the manufacture of various products. Besides, as castor does not have a synthetic or any other alternative, it has an assured market. Domestic demand of Castor Oil has unfortunately not kept pace with growth in castor seeds output. Developed economies are major user of castor oil.
Castor Extraction The solvent extracted cake, although rich in protein cannot be used as cattle fodder because of its toxicity. However, it can be used as a fertilizer. The protein content of castor seed meal varies from 21-48% depending upon the extent 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 allergen restrict its use in poultry feed, even at a very low level of inclusion. Castor Cake is an excellent fertilizer because of high content of N (6.4%), Phosphoric Acid (2.55%) and Potash (1%) and moisture retention.
13
Castor Seed
There is negative correlation between the contents of ricinine in castor seeds and oil content (r = -0.76). This content of ricinine in castor seed is determined by agro climatic conditions. Prices of Castor seed and oil Prices of Gujarat castor seed in Mumbai market since 2001 has shown high volatility. Its versatility and a large number of down-stream products make consumption demand of this oil price-inelastic. The major factors influencing the prices are Production Monsoon Yield in other countries Prices of substitute oils Domestic and export demand Seasonal factors Stock availability Development of new uses of the oil In the international market, castor oil is one of the most expensive vegetable oils. Despite India’s dominant position in the global castor market, we are not price-setters in the Export market, but mere price takers. One may observe from the prices below that the prices of castor seed and castor oil are closely related to each other.
14
Castor Seed
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
15
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
Castor Seed
NMCE Castor Seed Spot Price (Ahmedabad)
2600
2400
2200
2000
1800
1600
1400
16
