Castor (Ricinus communis L.) is a non edible oilseed, belonging to the Euphorbiaceae family. India is the

leader in global castor production and dominates in international castor oil trade. The Indian variety

of castor has an oil content of 48%. Out of 48% about 42% of oil is being extracted and the cake

retains the rest. The Castor seed products have widespread application in many industries like Paint,

Lubricant, Pharmaceutical, Textiles, etc.

Seasonality

Castor is a perennial crop but grown as an annual for economic purpose. Castor grows well in

tropical conditions. It grows best in heat and humidity. The crop duration is 4-5 months. In India, it

is sown in July/August and harvesting commences around January/February. The arrivals in the

market start from January onwards till mid of May.

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Gujarat

Andhra Pradesh

Sowing Growth stage Harvesting

Processing of castor seed

Castor seed harvested from field is dried till the pods open. Seeds are hulled by using de-hullers or

by hand to remove the seed from the pod. Seed contains about 50 percent of oil by weight.

Extraction of oil from castor seeds is done in a manner similar to that for most other oil seeds. The

ripe seeds are allowed to dry, when they split open and discharge the seeds. These seeds are cleaned,

cooked and dried prior to extraction. Cooking is done to coagulate protein (necessary to permit

efficient extraction), and to free the oil for efficient pressing.

Scenario of Castor Seed

The first stage of oil extraction is pre-pressing, using a high pressure continuous screw press – called

the expeller. Extracted oil is filtered, and the material removed from the oil is fed back into the

stream along with fresh material. Material finally discharged from the press, called cake, contains 8 to

10 percent oil. It is crushed into a coarse meal, and subjected to solvent extraction with hexane or

heptane.

Process flow chart

Uses

Castor oil and its derivatives are extensively used in the manufacture of

� Surfactants

� Specialty soaps

� Coatings

� Lubricants

� Plastizers

� Paper inks

Cook with steam and mechanically expel

Degumming & Decanting

Castor seed

First pressed castor oil

First pressed degummed (FPD)

Castor oil - FPD Castor oil commercial grade

Global Scenario

Global castor seed production is almost stagnant around 10-14 lakh tonnes in the past 7-8 years.

Output touched all time high of 15 lakh tonnes during 2005 as production has significantly increased

in India. Yield has drastically declined during 2006 and reflected in total output. India is largest

producer of castor seed and constitutes about 64% of total global production. Any changes in area

and yield in India has major impact on global castor output.

World Area, Production and Yield of Castor seed

0

2

4

6

8

10

12

14

16

2001 2002 2003 2004 2005 2006

Are

a &

Pro

duction

800

850

900

950

1000

1050

Yie

ld

Area(Lakh Ha) Production(Lakh Tonnes) Yield

Percentage share of Castor seed production

India

64%

China

21%

Brazil

8%

Others

7%

Global castor oil consumption

Although India produces major percentage of castor oil, its domestic consumption is limited. China

is the major consumer of castor oil, which consumes about one third of total production. Other

major consumers are Europe, India and Brazil.

Castor seed oil consumption

China

32%

Brazil

10%

EU

24%

India

15%Japan

4%

USA

7%

Others

8%

Indian Scenario

Castor seed production has gradually increased in the past few years. India recorded highest output

of nearly 10 lakh tonnes during 2005 with increased yields. Area is almost stagnant in the past few

years, however, increased yields of castor seed contributed to higher output. Castor seed has

recorded highest yield of 1216 kg per hectare in previous year. The sufficient rainfall and irrigation

sources especially in Gujarat have improved the yield in India.

India Area and Production of Castor seed

0

2

4

6

8

10

12

2001 2002 2003 2004 2005 2006 2007

Are

a &

Pro

duction

600

700

800

900

1000

1100

1200

1300

Yie

ld

Area(Lakh Ha) Production(Lakh tonnes) Yield(Kg/Ha)

Castor seed production in India

Gujarat

71%

Rajasthan

16%

AP

9%

Other States

4%

Cultivation of castor seed mainly confined to western states like Gujarat and Rajasthan both

together contributes 87% to total production. Gujarat has the largest share in India production with

71% followed by Rajasthan (16%). Apart from these two states, it is also grown in southern state of

Andhra Pradesh, which accounts for 9% of the total production.

Export of castor seed oil by India

India is largest exporter of castor seed oil as it is largest producer of the seed. Annually it exports

about 1.8-2.0 lakh tonnes of castor seed oil and receives huge foreign earnings. Export volumes have

marginally declined in the past three years even as output has increased during same period.

Appreciating Rupee has affected the export quantities, however, higher export prices provided more

earnings in terms of value. India exports more than 80% of total castor seed output in the form of

oil.

Export of Castor seed oil by India

0.0

0.5

1.0

1.5

2.0

2.5

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Quantity

(M

T)

400

500

600

700

800

900

Valu

e(R

s.c

r)

Quantity(Lakh MT) Value (Rs.cr)

Source: seaofindia

Note: only through Mumbai and Kandla ports and 2007-08 data till March 2008

Castor seed meal is another major derivative of castor seed exported by India. This oil meal exports

have increased 4-5 times in the past five years. India exported record oil meal of 3,30,475 tonnes

during 2007-08 up from 65,550 tonnes shipped in 2003-04.

Export of Castor seed oil Meal by India

0

50000

100000

150000

200000

250000

300000

350000

2003-04 2004-05 2005-06 2006-07 2007-08

MT

Current production scenario

Gujarat is largest producer of castor seed in India and other major producers are Rajasthan and

Andhra Pradesh. It contributes about 70% of total domestic output. Output is estimated around

9.09 lakh tonnes in 2007-08, up by 16% from previous year. Yield has been increasing significantly

along with area especially in Gujarat has resulted into bumper harvest of the crop last year. Area

under castor seed has increased by whooping 26% in 2007-08 to 3.54 lakh hectares. Gujarat has

highest yield with 1838 kgs per hectares. Higher rainfall last year mainly in western parts of the

country and improved irrigation facilities in these two major states led to sharp rise in output.

Gujarat has about 20 castor seed processing mills and major hub for castor seed industry.

State–wise Area, Yield and Production of Castor seeds in All India (2007-08)

District Estimated Area

Under Crop* ('000 ha.) Estimated Production*

( '000 tonnes) Estimated Yield *

(Kg/ha.)

2006-07 2007-08

% Change 2006-07 2007-08

% Change 2006-07 2007-08

% Change

Gujarat 281.59 354.33 26 494.81 651.22 32 1757 1838 5

Rajasthan 114.9 118.01 3 135.24 142.88 6 1177 1211 3 Andhra Pradesh 248.84 232.56 -7 113.57 83.13 -27 456 357 -22

Other States 52.69 43.5 -17 40 32.63 -18 759 750 -1

Total 698.02 748.4 7 783.62 909.86 16 1123 1216 8

Source: www.seaofindia.com

Market influencing factors

♦ Sowing and progress of south-west monsoon in western parts of the country

♦ Production of castor seed in India and also in China and Brazil

♦ Arrivals pattern in spot markets

♦ Export demand for Indian castor oil and exchange rate

♦ Prices of other edible oils

Price analysis

Castor seed prices have rallied by about 87% in the last two years and touched all time high of

Rs.525 per quintal. Prices were almost range bound around Rs.250-350 prior to 2006. Bullish trend

started from second half of 2006 and prices never saw back. Strong export demand for castor oil

and bullish tone in other oils including crude oil, soy oil and mustard oil supported the sharp rise in

prices. Soy oil prices have gained by around 85% and crude oil prices moved up by more than 70%

in the same period.

Castor seed Spot prices (NCDEX Deesa)

200

250

300

350

400

450

500

550

7/2

2/0

5

9/2

2/0

5

11

/22

/05

1/2

2/0

6

3/2

2/0

6

5/2

2/0

6

7/2

2/0

6

9/2

2/0

6

11

/22

/06

1/2

2/0

7

3/2

2/0

7

5/2

2/0

7

7/2

2/0

7

9/2

2/0

7

11

/22

/07

1/2

2/0

8

3/2

2/0

8

Price p

er Q

tl

Factors to be watched out

♦ Production during 2007-08 has been estimated at 9.09 lakh tonnes increased by 16%

compared to last year

♦ Gujarat is largest producer with production of 6.5 lakh tonnes in 2007-08 and major hub for

castor seed industry

♦ Carry forward stocks were negligible due to low output last year

♦ India has exported 1.7 lakh tonnes of castor seed oil in 2007-08 compared to 1.9 lakh tonnes

in last year (till March 2008)

♦ Prices have gained by 46% in last one year

♦ Export demand remain strong especially from China

♦ Export earnings have affected by appreciating Rupee in the last one year

♦ Export prices are quoting around $1400 per MT (FOB)