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The country’s castorseed crop is set to jump 34 per cent to 14.3 lakh tonnes (lt) on a record 37 per cent increase in yield at 1,738 kg/ha.
A field crop survey, commissioned by the Solvent Extractors’ Association of India (SEA), revealed that Gujarat’s acreage under castor edged up 2.9 per cent from 7,99,540 hectares in 2016-17 to 8,22,790 hectares for the 2017-18 kharif season.
The higher crop estimates was directly reflected on the prices as castorseed futures tumbled on the National Commodity & Derivatives Exchange (NCDEX) by about 2 per cent during Monday to touch a low of ₹4,116 per quintal for March delivery.
The estimates of the SEA survey, conducted by Indian Agribusiness Systems Ltd (Agriwatch), in the castor growing regions of Gujarat, Rajasthan, Andhra Pradesh and Telangana, has exceeded the government’s first advanced estimate, which stands at 13.96 lt for 2017-18.
Volatile prices
A higher crop estimate will further swing the prices, which have been volatile over the past one month. Castorseed futures had reported a 5 per cent jump in last one month due to improved domestic demand from the stockists and oil mills, coupled by robust export demand hopes.
Market data revealed that castor oil exports for first 10 months of the current fiscal (April-January) were 16.7 per cent higher at 4.85 lt (4.15 lt). Castormeal exports hovered at 5 lt — up by 49 per cent compared to last year’s exports of 3.38 lt.
State-wise crop estimates suggested Gujarat — the largest producer — reported a 5.3 per cent increase in the sowing area to 5,95,600 hectares (5,64,400 hectares). The production in the State is estimated to be at 12.21 lt — up 42 per cent over last year’s estimate of 8.61 lt. The yield is expected to be 34 per cent higher at 2,050.23 kg/ha.
Better farm practice
The increase in area is attributed to the crop rotation, expectation of higher price and lower cost of cultivation, Agriwatch stated in its crop estimate released during the Global Castor Conference 2018 in Ahmedabad on Saturday.
However, area of the oilseed in Rajasthan, Andhra Pradesh and Telangana have dropped. Castor acreage in Rajasthan is seen down by about 8 per cent to 1,81,000 hectares. The same is likely to be lower by about 20.5 per cent in Andhra Pradesh and Telangana at 58,190 hectares (73,180 hectares).
“The major reasons for decrease in area are crop shift, falling yield and pest attacks last year... and expectation of lower prices this year,” stated Agriwatch.
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