Castor oil is an industrial commodity with India ranks first in terms of global production and export.As the oil is exclusively designed for production of a broad range of chemical derivatives and coupled with varying demands from local and international markets,its prices continue to remain in a high degree of fluctuation.In the recent past,prices of castor oil and seed saw a giant leap but brought some negative consequences indirectly from the buyers.Currently demands for the castor oil have been subdued inspite of a relatively good supply and make a stagnant position in consignment bookings which can be indicated by the castor seed prices for the June delievery which closed at Rs:4520 per quintal showing only a modest rise of Rs:29 from its previous close.

Extreme dynamics in market supply and price volatility are not positive signs of a stable economy as they do not ensure a stable partnership between business partners in a long run which is what is seen in castor trading currently to a mild extent.By introducing regulatory measures in supply chain,conditions hope to recover and display sustainable dominance from the Indian castor market.