Re rally hits castor oil exports

Written by Dhimant Bhatt | Mumbai, Sep 26 | Updated: Sep 27 2007, 06:23am hrs
Castor oil exports from the country have come down during the current financial year due to the appreciating rupee value against the dollar.

Total exports of castor oil and its derivatives have declined by 23% to reach at 66,174 tonne valued at Rs 275.05 crore during the April-August 2007 (five month) of FY 2007-08 from 85,174 tonne (Rs 278 crore) in the same period last year.

Exporters are not so keen to buy in bulk as slowdown in overseas demand. Due to the appreciating rupee, exporters are away from the market, a leading exporter said. Total exports of castor oil during the FY 2006-07 was largely steady at 1.86 lakh tonne as against 1.82 lakh tonne in FY 2005-06. There are some few enquiries for castor oil from China and Europe for November/December delivery. Fresh export demand would help domestic prices move up in the near term as India is the major supplier in the world market, a local broker said.

Strong demand from millers amidst depleting stock is supporting spot and futures prices at present and the trend is likely to prevail in the near term. Prices will remain firm as old stocks have almost exhausted and arrivals are declining, an analyst with Karvy Comtrade said.

Rains in Andhra Pradesh are likely to delay arrivals in major areas which is also adding factor for short term up trend. However, exchange rate is a matter of concern. Due to appreciating rupee, exporters may stay away from market, he said.