India’s castor seed crop is expected to decline 25 per cent to 10.67 lakh tonnes for the 2016-17 season, against 14.23 lakh tonnes in the previous year period, according to a crop survey released by Nielsen India on behalf of the Solvent Extractors Association of India (SEA).

Lower price realisation from the castor crop over the past year prompted farmers to turn to alternative kharif crops such as groundnut, cotton, pulses and spices. This resulted in a 26 per cent decline in castor area to 8.45 lakh hectares, against 11.36 lakh hectares last year. However, the yield per hectare is likely to be marginally better at 1,263 kg per hectare, 1 per cent higher than 1,253 kg.

Gujarat, the largest producer of the oilseed, has seen the highest shift from castor to other kharif crops. The castor area in the State has declined the most, by 28 per cent, from 7,81,000 hectares in 2015-16 to 5,65,000 hectares this year. Production is estimated to fall 27 per cent to 8.61 lakh tonnes (11.73 lakh tonnes).

Among the other growing regions, Rajasthan is likely to see a 16 per cent fall to 1.23 lakh tonnes (1.47 lakh tonnes), while Andhra Pradesh and Telangana are estimated to report production of 64,000 tonnes, down 19 per cent from 79,000 tonnes last year.

According to farmers, sustained lower prices made castor seeds less remunerative for the growers. Castor futures on NCDEX ended at ₹3,899 per quintal for the immediate month contract.

Experts, however, expect a spurt in prices around May and June, post the final crop. India is the world’s largest castorseed producer.

Related Topics
comment COMMENT NOW