Indian
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 that 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% share and 3 lakh tons of castor oil with an approximate of
51 % share in the world total production. Gujarat is India’s leading castor
producing state constituting to around 86% of the country’s total produce.
India nearly consumes ¼th 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% 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 world’s 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
- Carry over stocks
- Development of new uses of the oil
The major trading centers of castor and its derivatives in India
are : -
·
Rajkot (Gujarat)
·
Ahmedabad (Gujarat)
·
Gondal (Gujarat)
·
Gadwal (Gujarat)
·
Bhabar (Gujarat)
·
Disa (Gujarat)
·
Kadi (Gujarat)
·
Jedcherla (Andhra Pradesh)
·
Yemignoor (Andhra Pradesh)
Also, castor and its derivatives like castor seed, castor oil and
castor oil cake are traded in Indian commodity exchanges namely, National Commodity &
Derivatives Exchange ltd, Multi Commodity Exchange of India ltd, National Multi
Commodity Exchange of India ltd, The Bombay Commodity Exchange Ltd, Mumbai, The
Rajkot Seeds oil & Bullion Merchants` Association Ltd and Ahmedabad
Commodity Exchange Ltd
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