At the time when the country?s overall growth of export started showing negative trend in some agri-commodities due to the impact of global economic crisis, export of castor oil has not only buck the trend but also registered a significant growth of 74% during the fiscal year 2008-09.
Annual exports were below 2 lakh tonne over the past five years. Castor oil is the substitute of petroleum products.
For the first time in the recent years, the total export of castor oil has crossed 3 lakh tonne mark in financial year 2008-09. Total export increased to 3.08 lakh tonne in 2008-09 from 1.76 lakh tonnes in 2007-08, up by 74% thanks to good buying from China.
?There are some enquires from China. I think the country exports about 8,000 tonne castor oil per month to China as Chinese buyers prefers small lots in containers,? said Wamanbhai Udeshi, director, Jayant Agro-Organics, a leading exporter of castor oil products.
?Shippers are offering castor oil around $1,020-1,030 per tonne (C&F basis) ex-Kandla for next month shipment,? a local broker said.
The country has so far exported about 75,000 tonne of castor oil till April during the current calendar year as fresh arrivals of new crop started in last January. Daily arrivals reached to one lakh bags (each of 75 kgs).
Traders expect export demand to continue from China. However, there are some enquiries from Europe and the US but hardly any major deals heard, sources said. The country expects 10.5-11 lakh tonne of castorseed crop for the current season. Of which, about 2.5 lakh tonne have already arrived in the major market yards of Gujarat and Rajasthan.
Shippers and stockists are major buyers in the market as they feel prices to remain firm over the next few days, a broker said.
Castorseed May contracts on NCDEX platform were up Rs 14-15 to trade at Rs 501 per 10 kg on Monday on continued buying support.