With the rising prices of crude oil globally and depreciating rupee value against the US dollar, castor oil export from the country is expected to rise to 1.95 lakh tonne for the current season 2007-08 (November/October) thanks to good demand from China and Europe.
Till May 2008, total exports reached to nearly 1.40 lakh tonne, up by nearly 26% over the same period last season.
With strong crude oil and higher Tung oil prices in China, major importers have shifted their interest towards castor oil.
Depreciating rupee against dollar has also helped exporters to boost their export, market sources said. Rupee against dollar has so far depreciated by 10% in 2008.
?Castor oil demand will continue to increase in the next few months as castor oil is the substitute of petroleum products. Crude oil prices are ruling higher that will help castor oil. Domestic demand for castor oil is also rising with good local buying,? Waman Udeshi, director of Jayant Agro-Organics told FE.
Castor oil shipments to China are expected to be around 8,500 tonne this month.
Castor oil prices are currently ruling around $1,450 per tonne while tung oil prices are quoting at $2,100 tonne, sources said. Apart from castor oil, the country also exports castor oil derivatives to Japan, Europe and the US.
It can be noted that India is the largest producer of castorseed with a market share of about 65% in world production. India has produced bout 9.10 lakh tonne during season 2007-08, up by 16% from the previous season, according to Solvent Extractors? Association of India.