Castorseed futures dropped by the maximum permitted level on the NCDEX as concerns over the global economy weighed heavily.

Arrivals of the new crop added the bearish trend.

October futures slipped 4 per cent to Rs 3,284 a quintal on the NCDEX. Prices hit the upper circuit on September 25, gaining 4 per cent at Rs 3,655 a quintal.

Most of the castor growing areas have reported steady progress in sowing. Yields are also expected to be better. The prospects of higher production on the back of improved rainfall in the major producing regions capped gains.

The November and December contracts lost 3.98 per cent at Rs 3,358 and Rs 3,404, respectively.

India is the largest producer and exporter of castor seed and its oil, meal. According to the latest data from the Solvent Extractors' Association of India, India's total castormeal exports during April-August was reported at 1.12 lakh tonnes, up 58 per cent from the last year in the same period. Export of castor oil reached 30,963 tonnes for August 2012, against 35,130 tonnes for July.

SEA's castor crop survey estimates domestic production at 1.61 million tonnes for the 2011-12 season (October-September), showing a growth of about 30 per cent over the 1.25 million tonnes recorded in 2010-11.

The spot market ruled weak and at Disa (Gujarat) castorseed was quoted at Rs 3,467.2 a quintal.