At the spot market, castor price had reached to Rs 920-925 per 20 kg bag But soon after that, castor seedprices started declining as demand for export came down and now it is being traded at Rs 800-810 per 20 kg. Prices, therefore, have decreased nearly 12 per cent or Rs 110 per 20 kg .
On the National Commodity and Derivatives Exchange (NCDEX), the castor seed contract for February 2014 went down by about 16 percent during a week. NCDEX February contract was traded on Rs 4,248 per quintal on Friday while it closed on Rs 5,056 per quintal a week ago.
Delayed and lower sowing on account of unfavorable weather conditions has hampered production. Gujarat and Andhra Pradesh, the two largest castor growing states, witnessed shortage of rainfall during the sowing period. Globally too, castor supplies are likely to remain tight. Sowing area was lower this year by 35-40 per cent, coupled with decline in estimated yield due to inconsistencies in the monsoons in major growing regions.
Traders estimate total availability at 1.4 million tonnes this year, as compared with 2.4 million tonnes in the previous year.