Price of castor has continued to grow due to higher demand from Indian exporters of castor seeds while arrivals have continued to fall in Gujarat. Castor sowing has experienced a downfall as the farmers are not willing to sell their stocks due to expectations of higher return therefore the sowing of castor has decreased in India.
According to to the statistics of the Rajkot Commodity Exchange, castor March contract was increased from Rs 68 to Rs 4,122 per quintal, spot castor price was gained from Rs 7.50 to Rs 3,697.50 per quintal. At National Commodity and Derivatives Exchange, castor January contract was increased Rs 60 to Rs 3,908 per quintal, with an open interest of 116,540 lots. NCDEX February contract was increased Rs 58 to Rs 3,997 per quintal with an open interest of 38,540 lots.
About 12,000-13,000 bags castor arrived in Gujarat and price was Rs 730-737 per 20 kg. About 2,900-3,000 bags castor arrived in Saurashtra and price was Rs 710-740 per 20 kg.
Till October in 2012-13, India had exported 2.79 lakh tonne of castor oil, more than 2.63 lakh tonne during the same period last year. The trade body now estimates castor seed acreage at 11.81 lakh ha, down by 11.6%, while 2012-13 castor seed output is secured at 10.7 lakh tonne, down almost 33.9%.
According to market experts, the prices are not expected to shrink as the farmers will not sell at low levels given the decreased productivity in the coming season. but the carry over stock from the last season
may cap sharp gains, keeping prices in the confined range. keeping a close watch on weather in the upcoming month as it may effect the yield.