Castor
Castor seed and oil Castor (Ricinus communis L., Euphorbiaceae) seed is one of the commodities where India enjoys supremacy as far as production and export is concerned. India contributes 750,000 tons annually, and accounts for over 60% of the entire global production. During 2003-04 India produced 0.67mn tons of castor seeds. Around the world, castor seed is cultivated because of commercial importance of its oil. India is also the biggest exporter of castor oil. It corners about 70% of the global castor oil trade. Given the preference for castor oil, particularly from the industrial sector, it is constantly in demand, which is estimated at about 220,000 tons per annum. Although, Castor is highly poisonous plant, it is an important non-edible oilseed crop. The seed, leaves, and stem of castor are poisonous to humans and livestock if consumed. Castor oil is obtained through pressing the seeds, followed by solvent extraction of the pressed cake. The uniqueness derived from this oil is 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. Castor uses More than castor seeds, as mentioned earlier, it is castor oil that generates high in demand. Castor oil is used for manufacturing various other products. In US, products such as nylon-11, hydrogenated oil, dehydrated oil and its fatty acids, sulfated and sulfonated oil, sebacic acid, ethoxylated oil, polyurethanes, and oxidized and polymerized oil are turned out with the input of castor oil. Castor oil is also used in a wide range of cosmetics, toiletries, and transparent soaps. Castor oil and its derivatives are also used in lubricating formulations. Castor oil is used either in crude form or in the refined hydrogenated form. Castor Cake is an excellent fertilizer because of high content of N (6.4%), Phosphoric Acid (2.55%) and Potash (1%) and moisture retention. Major producing regions Castor is grown especially in arid and semi arid region. Castor is originated in the tropical belt of both India and Africa. It is cultivated in 30 different countries on a commercial scale. India, China, Brazil, USSR, Thailand Ethiopia and Philippines are major castor growing regions. They account for about 88% of the world's production. Historically, Brazil, China and India have been the key producing countries meeting global requirements.
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Castor
International scenario Countries from tropical regions dominate castor market. India is the major producer with 64 % share in the world castor market, followed by China and Brazil with 23 % and 7 % share respectively. The world castor seed production fluctuates between 1.2 to 1.8mn tons. World Castor Production
China 23% Brazil Others 7% 6% India 64%
Indian scenario In India, with the onset of monsoon (July to August), the castor sowing commences and harvested around December or January. The seedpods are dried, de-podded and brought to the market yards during December or January for trading. Castor is cultivated for the commercial importance of its oil. Indias castor production fluctuates between 0.6 to 0.9mn tons a year. In the year 2003-04, Indias castor production was 0.8mn tons. Indian castor variety contents 48% oil of which 42% can be extracted. Indias consumption of castor oil and its derivatives estimated at about 100,000 tons. Indian climate is more suitable for castor cultivation and hence it is the largest producer of this commodity. Gujarat (Mehsana and Banaskantha districts) is the largest producer with 0.36mn tons of castor production during 2003-04. Andhra Pradesh with production at 0.14mn tons and Rajasthan with 0.10mn tons are other major castor producers in the country. India consumes close to 25% of its production of which 1/4th is used in soap manufacturing while 1/5th is consumed by lubricants and derivatives industry. Paint and allied industry consumes nearly 35% of the domestic consumption. Import/Export scenario The demand for castor oil is more in the industrialized nation such as the US, European countries etc. The US is totally dependent upon imports to meet the industry and defense needs of castor oil. 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. It exports around 0.2 0.24mn tons of commercial castor oil, 50,000 - 60,000 tons of castor seed extractions and 15,000 - 20,000 tons of castor seed. India is the first country in the world to exploit hybrid vigour on commercial scale in this crop. Export of castor oil, seed and derivative products contributes around Rs7bn worth foreign exchange. Major markets include Europe, USA, Japan and now China and Thailand. Castor seed export from India has shown steady growth over the years.
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Castor
Castor oil prices Castor seed availability/arrival in the market place and its numerous usage makes it a highly volatile commodity. Also the large number of down-stream products make consumption demand of this oil priceinelastic. In the international market, castor oil is one of the most expensive vegetable oils. Despite Indias dominant position in the global castor market, in the exports market the Indian castor produce doesnt drive the prices.
Published in October 2004. India Infoline Ltd 2004-05. This report is for information purposes only and does not construe to be any investment, legal or taxation advice. It is not intended as an offer or solicitation for the purchase and sale of any financial instrument. Any action taken by you on the basis of the information contained herein is your responsibility alone and India Infoline Ltd (hereinafter referred as IIL) and its subsidiaries or its employees or directors, associates will not be liable in any manner for the consequences of such action taken by you. We have exercised due diligence in checking the correctness and authenticity of the information contained herein, but do not represent that it is accurate or complete. IIL or any of its subsidiaries or associates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this publication. The recipients of this report should rely on their own investigations. IIL and/or its subsidiaries and/or directors, employees or associates may have interests or positions, financial or otherwise in the securities mentioned in this report.
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